June saw a celebration of diversity, equity and inclusion through Pride Month. First taking place in 1970 in four US cities (New York, Chicago, Los Angeles, & San Francisco), Pride Month has since grown into a global celebration of LGBTQ+ culture and identity.
Diversity, Equity and Inclusion (DEI) continue to be a growing topic societally, and the DIY, home improvement and garden industry is playing its role in this also. The vast majority of retailers and suppliers in the home improvement industry are supportive of pride. However, some retailers have recently forgone their support of DEI and Pride in contrast to the trend.
In the next few paragraphs, we will explore the role DEI plays in the industry today, and how this role could develop and evolve in the future.
The Importance of DEI for Future Generations
It is an undeniable fact that Gen-Z, the dynamic group born between 1997 and 2012, is stepping into professional life and into the workforce, with Generation Z projected to grow to 51 million by 2030. This generation is one of the most diverse generations to date, with a strong sense of social awareness guiding their requirements for the ideal workplace. Moreover, Generation Alpha, will follow in the footsteps of Gen-Z and are widely expected to consider DEI as even more paramount.
Gen-Z and Generation Alpha view DEI not as mere corporate buzzwords, but as non-negotiable pillars that define the essence of an employer. Therefore, it can be argued that companies that don’t live and promote these values will lose out on some of the most digitally advanced and forward thinking employees in the coming years. This demonstrates the essential role that DEI already plays today, not only in home improvement, but in society as a whole. Companies that promote DEI are those companies that are likely to thrive in the future.
DEI in the Home Improvement Industry
In the Home Improvement industry there are a number of examples of companies embracing DEI. For example, Wickes, operating throughout the UK with 229 stores, have people as the top category in the “responsible business” section of their website, with inclusion and diversity as the first section in this.
Wickes share “we are building a space where anyone – no matter who they are or where they’re from – can feel at home.” To support the construction of this, Wickes have established “six colleague-led ‘Feel at Home’ networks that drive awareness and education” of the diverse communities Wickes operate in. These networks cover a variety of topics, from Pride, Ability, RAACE, Wellbeing and Future Focus. Wickes is also a founding member of Diversity in Retail. This has led to recognition, with Wickes shortlisted for Company of the Year at the Burberry British Diversity Awards in 2023.
A company in continental Europe that has embraced DEI is OBI. OBI, operating across 10 European countries, employs 43,000 people. As an employer, the DIY retailer encourages and enables its employees to grow individually and creates the appropriate conditions and working conditions for this. An example of this was the signing of a Diversity Charter in May 2023. Further to this, since 2023, OBI has been an avid supporter of the Christopher Street Day in Cologne, Germany, close to its head offices, with its own float and a walking group taking part in each edition of the celebration.
Recent DEI Developments at Tractor Supply
However, across the pond, in the USA, some developments look less future-oriented and, from a European perspective, are affronting the trends we are seeing internationally.
On the 27th of June 2024, Tractor Supply, the largest rural lifestyle retailer in the U.S. with over 50,000 Team Members and 2,250 stores, published a Company Statement on its “relationship with [its] customers and the communities”. In response to Customer feedback, Tractor Supply announced a number of measures, for example, they shared they:
- Would no longer submit data to the Human Rights Campaign,
- Further focus on rural America priorities including ag education, animal welfare, veteran causes and being a good neighbor and stop sponsoring nonbusiness activities like pride festivals and voting campaigns
- Eliminate DEI roles and retire [their] current DEI goals while still ensuring a respectful environment
Although Tractor Supply cited customer feedback for its action, Anti-‘woke’ activist Robby Starbuck, claims he had stoked the online protest against Tractor Supply for “going woke” and has taken credit for the outcome.
The publication of this press statement has led to outcry from certain groups, for example, the Black farmers’ association called for Tractor Supply CEO’s resignation following the announcement, and according to Marketwatch, Tractor Supply Co. stock underperformed compared to market expectations.
Companies are viewing DEI as one of the key pillars to remaining relevant for future generations. Gen-Z, and arguably even more so Generation Alpha, see DEI as non-negotiable and will make decisions on where they shop and work considering a company’s stance and efforts on DEI. Although some companies are foregoing DEI and even rejecting this trend, these are the exceptions to the rule, and companies that do so may encounter challenges in coming years.