{"id":8789,"date":"2025-06-30T01:51:55","date_gmt":"2025-06-30T05:51:55","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2025\/06\/30\/if-you-walk-away-from-the-lgbtq-community-youre-handing-your-competitors-the-future\/"},"modified":"2025-06-30T09:40:27","modified_gmt":"2025-06-30T13:40:27","slug":"if-you-walk-away-from-the-lgbtq-community-youre-handing-your-competitors-the-future","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/if-you-walk-away-from-the-lgbtq-community-youre-handing-your-competitors-the-future\/8789\/","title":{"rendered":"If You Walk Away From the LGBTQ+ Community, You\u2019re Handing Your Competitors the Future"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Hunter Johnson, Founder &#038; CEO, Xpedition<\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">I\u2019ve been in the room when it happens.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The moment a brand starts to question its Pride campaign because someone raised the risk of backlash. Or someone else suggests staying quiet this year. It\u2019s fear dressed up as strategy.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">I\u2019ll put it plainly: pulling back isn\u2019t neutral or strategic. It\u2019s surrender. And it comes with a cost to your business.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Today, over 20% of Gen Z adults identify as LGBTQ+. They\u2019re not just shaping culture, they\u2019re the future of the economy. If you play it \u201csafe,\u201d you\u2019re walking away from reality.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">And we\u2019ve seen what happens when you do.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Target&rsquo;s Retreat and Repercussions<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">In 2023, Target responded to pressure by scaling back its Pride displays. The result was a 5.4% drop in in-store sales and a 10.9% drop in online sales that quarter. But instead of learning from that, they doubled down in 2025, announcing the termination of their DEI programs entirely.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">They didn\u2019t look at the data. They didn\u2019t listen to their customers. They acted out of fear. Again.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The backlash was immediate. Civil rights groups called for a boycott. Consumer trust dropped even further. And the business impact followed. Target reported a 1% revenue decline in 2024, and projected flat growth for 2025. On November 20, 2024, their stock price fell 22%, erasing $15.7 billion in market value.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">This wasn\u2019t about politics. It was about standing up for what\u2019s right. And they failed, twice.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Costco&rsquo;s Consistency and Consumer Trust<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Now compare that to Costco.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">In 2025, facing similar pressures, Costco\u2019s board didn\u2019t waver. A proposal to reconsider their DEI efforts was rejected, with 98% of shareholders voting to stay the course. That wasn\u2019t just a business decision. It was a signal.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Costco understood who their customers are. More affluent. More educated. And according to Kantar Retail IQ, those traits are closely tied to greater support for diversity and inclusion. Costco trusted their consumers and their values. They stayed consistent, and it worked.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">By maintaining a strong DEI stance, Costco further attracted many of these same consumers. During a four-week period that ended Feb. 9, Costco saw an increase of 7.7 million visits, while Target saw a decline of nearly 5 million shoppers.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Bottom Line<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">This isn\u2019t about being performative. It\u2019s about being consistent.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">If you say you stand for something, stand for it when it counts. If you show up for a community, show up when it\u2019s hard. Otherwise, you\u2019re not leading. You\u2019re just reacting.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Brands that lead with clarity and courage will win the next decade. Not because it\u2019s trendy. Because it\u2019s true.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Gen Z is watching. So are the rest of us.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">If you walk away, which competitor will replace you?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brands that lead with clarity and courage will win the next decade. Not because it\u2019s trendy. Because it\u2019s true.<\/p>\n","protected":false},"author":7,"featured_media":8790,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[3],"topics":[2],"class_list":["post-8789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-brands-marketers","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>If You Walk Away From the LGBTQ+ Community, You\u2019re Handing Your Competitors the Future | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/if-you-walk-away-from-the-lgbtq-community-youre-handing-your-competitors-the-future\/8789\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If You Walk Away From the LGBTQ+ Community, You\u2019re Handing Your Competitors the Future\" \/>\n<meta property=\"og:description\" content=\"Brands that lead with clarity and courage will win the next decade. 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