Lowe’s (LOW) is making major changes to company initiatives amid pressure from its conservative customers and dwindling sales.
The company revealed in an internal email, which was leaked by conservative activist Robby Starbuck on X, that it is reducing some of its diversity, equity, and inclusion policies.
Related: Harley-Davidson makes a tough decision amid ‘woke’ outrage
“I messaged @Lowes executives last week to let them know that I planned to expose their woke policies,” said Starbuck in a tweet on Aug. 26. “This morning I woke up to an email where they preemptively made big changes.”
Lowe’s has made a controversial decision regarding diversity, equity, and inclusion policies.
Spencer Platt/Getty Images
Lowe’s rethinks its DEI initiatives
While Lowe’s stated in the email that it believes in “inclusion, not exclusion,” it has opted to reevaluate its DEI policies after the U.S. Supreme Court ended affirmative action in college admissions in June last year.
“Like many other companies, in July 2023, after the Supreme Court’s decision in the Harvard/UNC cases, we began reviewing our diversity and inclusion programs to ensure they are lawful and aligned with our commitment to include everyone in the incredible opportunities here at Lowe’s and ensure that no one is excluded,” said Lowe’s in the email. “We made some changes to our programs so they can more effectively further this commitment.”
Some of those changes include axing individual employee groups that represent diverse identities at the company and instead putting them all under “one umbrella organization.”
Lowe’s also stated that it will no longer participate in the Human Rights Campaign survey, which tracks LGBTQ+ corporate policies and practices.
Lowe’s also said it will not support certain community events, such as festivals and parades, that are not aligned with its top three philanthropic focus areas.
“As you know, over the past few years, we have been narrowing our community and philanthropic areas of focus to strategically align with our business, with a concentration in three areas: safe and affordable housing/community improvement, disaster relief, and skilled trades education,” said Lowe’s in the email. “As a result, Lowe’s will focus on events that have the biggest impact to these three areas. We will not sponsor and participate in community events that are outside of the scope, such as festivals, parades, and fairs.”
The full email sent out by @Lowes executive leadership team this morning. Lowe’s press office confirmed it was real when I contacted them and a source at Lowe’s told me the changes are a direct response to our work. 🔥 pic.twitter.com/u4dTuaK1aw
— Robby Starbuck (@robbystarbuck) August 26, 2024
The move from Lowe’s follows a growing trend of companies pulling back from their DEI initiatives after consumer backlash and boycott threats.
For example, just last week, after criticism from consumers in July for going “totally woke,” Harley-Davidson clarified in a statement that it does not have a DEI function and that it will be making adjustments to its business resource groups so that it will solely focus on “professional development, networking, and mentoring.”
More Retail:
Macy’s store closures may unlock valuable real estateFTC finally makes a sneaky online shopping tactic illegalKroger has alarming plans for digital price tags, lawmakers say
It also said that its sponsorships and affiliations will be under review and that employee training, going forward, will “be absent of socially motivated content.”
Lowe’s struggles with shrinking sales
The changes from Lowe’s also come at a time when the company is battling a decline in sales. In its second-quarter earnings report for 2024, the company revealed that its comparable sales declined by roughly 5% compared to the same time period last year.
Its operating income, which is how much a company makes after expenses, also shrunk by about 11%.
The company blamed the decline on a pullback in consumer spending on large home improvement projects and “unfavorable weather.”
Lowe’s expects comparable sales to continue shrinking by 3.5% to 4% for the rest of the year due to the “macro environment” and shifts in consumer behavior.
Related: Veteran fund manager sees world of pain coming for stocks
