LGBTQ+ shoppers are cutting spending at these major retailers

Many LGBTQ+ consumers are pulling back spending at several top retailers due to the perceived lack of support for the community, a new report from the Human Rights Campaign Foundation (HRCF) found.

Target is the top company LGBTQ+ consumers associated with a pullback in spending due to a drop in commitments to the LGBTQ+ community, followed by Walmart, Amazon, Chick-Fil-A, and The Home Depot, according to a survey of 10,000 LGBTQ+ and 5,000 non-LGBTQ+ adults.

Costco was the top brand consumers associated with “visible commitment” to LGBTQ+ consumers and therefore increased spending, with Apple, Ben & Jerry’s, Delta, and Kroger rounding out the top five.

Respondents also most often named Costco as the most “authentically supportive” of LGBTQ+ consumers, followed by Apple, Starbucks, Delta, and Subaru.

In an emailed statement to Retail Brew, Amazon spokesperson Brad Glasser said the company is committed to establishing a workforce to serve “the most globally diverse customers in the world” and supporting opportunities for employees “to grow, thrive, and connect internally and in their communities.” Target, Walmart, Home Depot, and Chick-Fil-A did not respond to Retail Brew’s request for comment.

Target was previously a DEI trailblazer before pulling back on many DEI initiatives last year, Retail Brew reported, sending its foot traffic plummeting in the months that followed. The retailer is, however, a corporate sponsor of San Francisco Pride this month, HR Brew reported.

LGBTQ+ consumers encompass $1.4 trillion in annual purchasing power stateside, and $3.9 trillion internationally, per HRCF. They’re also twice as likely to adjust their buying habits according to a company’s “perceived commitment” to DEI.

According to HRCF, 71.5% of LGBTQ+ consumers surveyed purchased fewer products from companies they perceived as cutting back on DEI initiatives (compared to 31.9% of non-LGBTQ+ adults), while 69.4% wouldn’t purchase from those companies “at least some of the time.” Alternatively, nearly 70% of LGBTQ+ shoppers boosted spending at companies they believed supported DEI efforts, and 65% shifted purchases toward those that had committed to them.

Increasing standing with LGBTQ+ consumers could drive business growth, per the report. Using data from 15 years of its Corporate Equality Index, HRCF found that companies with the “strongest LGBTQ+ inclusion performance” saw twice the revenue growth of those with lower performance, and about eight times higher average net income.

“Consumers are rewarding companies they see stand by their values and turning away from those who retreat under pressure,” HRC President Kelley Robinson said in a statement.