Walmart vs. Costco: A Tale of Two DEI Strategies

Let’s have a candid chat. Conversations about race, gender, and inclusion can feel challenging, but they’re essential. Recently, Walmart and Costco—the two giants we depend on for everyday needs—have made very different decisions about their Diversity, Equity, and Inclusion (DEI) programs. While Walmart’s rollback of vendor diversity efforts has raised eyebrows, Costco’s continued commitment to inclusion sets a powerful example. These choices aren’t just business decisions; they reflect societal values and impact all of us, including white women.

Let’s unpack what’s happening, why it matters, and how we can step up.

Walmart’s Rollback: The Myth of Neutrality

Walmart has positioned its recent vendor diversity changes as a move toward “neutrality.” Stricter certification requirements, higher spending thresholds, and reduced mentorship programs have been justified as streamlining the supplier process. But as Dr. Ibram X. Kendi highlighted in a critique discussed on White Women Wake Up, this so-called neutrality isn’t neutral at all.

Unpacking Neutrality: By claiming to eschew “propaganda around race and sexism,” Walmart is attempting to sidestep hard conversations about equity. But as Karen and Jonelle discussed, neutrality often reinforces existing power structures. When leadership remains overwhelmingly white and male (63% white at Walmart), decisions favoring “neutrality” perpetuate systemic inequities.

The Hidden Harm: On the podcast I pointed out how Walmart’s actions mirror the harmful rhetoric of “colorblindness,” which denies the lived experiences of marginalized communities. This erasure, framed as fairness, isn’t just misguided—it’s deeply damaging.

Costco: A Model for Inclusive Growth

In contrast, Costco has leaned into its DEI strategy. By supporting diverse vendors and maintaining mentorship programs, Costco shows how inclusion drives innovation and community growth.

Empowering Small Businesses: Unlike Walmart, Costco helps small vendors navigate certification requirements, ensuring they aren’t excluded due to administrative hurdles.

Transparency in Action: Costco regularly publishes reports on its DEI initiatives, creating accountability and trust with both suppliers and customers.

Harm, Bias, and Needed Growth

In the podcast, Karen shared a personal story about unintentionally committing a microaggression. Her willingness to reflect on her biases mirrored the journey many of us face when grappling with our complicity in systemic inequities. Here’s how the lessons from the podcast connect to Walmart and Costco’s DEI choices:

Microaggressions at Scale: Walmart’s rollback may not be an overt act of malice, but as Karen and I noted, unintentional harm is still harm. Removing support for diverse suppliers reflects a bias toward larger, established vendors—leaving smaller, minority-owned businesses out in the cold.

The Role of Language: The use of terms like “propaganda” to describe DEI efforts, as Walmart reportedly implied, diminishes their importance. Framing these efforts as unnecessary distractions creates a toxic narrative, discouraging progress.

The Power of Reflection: We need to continue to highlight the importance of listening, learning, and unlearning. Businesses, like individuals, must reflect on their biases and course-correct when they cause harm.

Why White Women Should Care

You might be wondering: what does Walmart’s vendor diversity program have to do with me? The truth is, it has everything to do with us.

1. We Benefited from DEI Programs

White women have historically gained from inclusion initiatives. From mentorship to leadership pipelines, DEI efforts have opened doors for us—and scaling them back risks slamming those doors shut for others and ourselves.

2. Shared Vulnerability

Karen’s vulnerability on the podcast—admitting her complicity in perpetuating biases—shows that we all have blind spots. Gender bias affects all women, and weakening DEI programs makes it harder to address those systemic challenges.

3. The Danger of “Neutrality”

Neutrality often masquerades as fairness, but as Dr. Kendi argued, it’s far from impartial. By refusing to acknowledge systemic inequities, Walmart is effectively upholding them. As Jonelle noted, this mirrors the rhetoric of “I don’t see color,” which erases the unique struggles of marginalized groups.

4. Coalition Power

Feminism has often failed to include marginalized groups, as Karen discussed after reading Bell Hooks’ Feminism Is for Everybody. Undoing these patterns requires recognizing that all of our struggles are interconnected. We thrive when we lift each other up.

What We Can Do

Here’s how we can take action, inspired by the podcast’s emphasis on reflection and growth:

1. Support Companies That Prioritize DEI

Shop at Costco and other businesses that invest in supplier diversity. Reward companies that align with your values.

2. Hold Walmart Accountable

Use your voice. Write letters, share posts, and demand that Walmart reconsider its policies. As Karen and Jonelle discussed, conversations—however uncomfortable—are the first step toward change.

3. Amplify Marginalized Voices

Support small businesses owned by women and people of color. Share their stories and advocate for their inclusion in corporate supply chains.

4. Reflect on Your Own Biases

Karen’s story about committing a microaggression underscores the need for self-reflection. Have tough conversations, listen without judgment, and commit to growth.

5. Stay Educated

Read books like Bell Hooks’ Feminism Is for Everybody or Mikki Kendall’s Hood Feminism. Learning helps us understand the broader context and equips us to be better allies.

A Call to Action

The decisions made by companies like Walmart and Costco reflect more than just business strategies—they’re a barometer of societal values. Costco’s commitment to inclusion shows that progress is possible, while Walmart’s rollback reminds us that equity is never guaranteed.

As white women, we have the privilege—and responsibility—to advocate for a more inclusive world. By challenging harmful narratives, supporting diverse businesses, and reflecting on our own biases, we can help ensure that the progress we’ve made isn’t undone.

Let’s use our voices, our dollars, and our influence to support the companies and policies that align with our values. Together, we can keep pushing for a future that’s more equitable, more inclusive, and better for everyone. Let’s keep waking up—and keep showing up.

-Jonelle