By Siddharth Cavale

(Reuters) – Batas (NYSE:) is ending its diversity, equity and inclusion program this year, the retailer said on Friday, the latest US corporation to walk away from such policies in the face of intense scrutiny from conservative groups.

Last year, several major companies, including Walmart (NYSE:), Amazon (NASDAQ:), and Meta (NASDAQ:), rolled back their DEI policies, and earlier this week, President Donald Trump federal agencies to end DEI. programs and urged private companies to end “illegal discrimination and DEI preferences.”

But the Minneapolis-based retailer’s decision has met with notable criticism, with some saying the company’s reputation for inclusiveness has helped it attract a younger, more diverse consumer base.

“For Target, which has an inclusive audience, this is their version of brand suicide,” said Eric Schiffer of Los Angeles-based Reputation Management Consultants, which advises US corporations and Hollywood celebrities.

Target has also said it will end Racial Equity action (WA:) and Change (REACH) initiatives this year, where it pledged to invest more than $2 billion in Black-owned businesses by the end of 2025. The initiative includes plans to add more than 500 Black-owned brands and a funding program from his in-house media company, Roundel, to increase exposure to various owned brands through payment media.

The retailer added that it is changing its “Supplier Diversity” team to “Supplier Engagement” in order to better reflect the “inclusive global procurement process.”

“Target is wrong by ending its DEI goals with a diverse customer base,” said Sylvester Turner, Congressman for Texas’ 18th Congressional District, in X.

DEI programs, designed to promote opportunities for women, ethnic minorities, LGBTQ+ people and other traditionally underrepresented groups, gained traction after nationwide protests in 2020 over of police shootings of unarmed Blacks. However, Trump and conservative groups have criticized them as discriminating against other Americans and for undermining merit in hiring and promotion.

“Many years of data, insight, listening and learning have shaped this next chapter of our strategy,” Target’s chief community impact and equity officer Kiera Fernandez said in a memo, adding which is essential to keep pace with the “evolving” outdoor scene. The company did not comment outside of its statement.

According to Target’s 2023 workforce diversity report, the retailer’s workforce consists of 56% female employees and 43% male employees. The racial and ethnic distribution is equally balanced, with 56% of employees being people of color and 43% being white.

Target stores are hosting LGBTQ-related items during Pride month, attracting a more diverse customer base than larger rival Walmart, which has announced cuts to some of DEI initiatives last year. However, in 2023, Target pulled some LGBTQ-themed products from stores, citing an increase in confrontations between shoppers and employees and incidents of products being thrown on the floor.

In 2016, Target said transgender employees and customers could use bathrooms that corresponded to their gender identity, at a time when a heated national debate emerged over the issue. This is the first major retailer to respond to the matter.

At a retail conference in New York this month, Target CEO Brian Cornell said the company’s growth in recent years has come down to investing in people and creating a culture of care and growth.

Last Thursday, shareholders of Costco Wholesale (NASDAQ: