By Mitchell Parton  •  December 11, 2025  •

Ivy Liu

Days after the Trump administration took effect, 98% of Costco shareholders voted against a proposal from conservative think tank National Center for Public Policy Research to evaluate risks posed by its diversity, equity and inclusion practices, according to Fortune. This was after Costco’s board of directors voted unanimously to ask shareholders to reject the motion.

“Our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary,” the board said. “The report requested by this proposal would not provide meaningful additional information.” The board also said, per Fortune, that having diverse employees and suppliers has fostered creativity and innovation in its merchandise and services.

This month, Costco sued the U.S. government in an aim to receive refunds if the Supreme Court rejects President Trump’s use of the International Emergency Economic Powers Act to impose tariffs, CNN reported.

Costco’s actions this year are in sharp contrast with others like Walmart, Tractor Supply and Target, which have played it safer in walking away from DEI policies. And although dozens of companies have sued the Trump administration in the hopes of securing a refund if the Supreme Court overturns President Trump’s tariffs policy, Costco was one of the largest companies and most notable companies to do so, joining Bumble Bee Foods, EssilorLuxottica and Kawasaki Motors. Costco did not respond to a request for an interview for this story.

“Costco really doubled down on it and reinforced what they were doing, and made some very clear statements that, ‘This is who we are,’ ‘We’re not going to change,’ and more importantly, they didn’t want to be bullied out of it,” said Christy Pruitt-Haynes, a consultant and public speaker who has worked in human resources and DEI strategy for almost 30 years, including for the Memphis Grizzlies, Paramount predecessor Viacom and automaker Infiniti. “I think some other organizations felt like their hands were tied, and people were almost forcing them to step away from their DEI efforts.”

Despite Costco’s opposition to the conservative position on DEI, the company’s net sales were up 8% year over year to $84.4 billion in its fiscal fourth quarter, which ended in August. Its net sales for the fiscal year were also up 8%. Target, meanwhile, has seen several years of stagnant sales, in part due to a decline in discretionary spending, but also amid the company’s reversal of its public commitment to DEI practices. That’s led more analysts, journalists and industry observers to draw comparisons between Target and Costco, noting that Costco’s sales growth comes as it has stood firm on its DEI policies.

“Consistency matters,” Pruitt-Haynes said. “Target did a 180[-degree pivot], and it showed people that, ‘You can’t count on us to be who we say we are,’ and ‘You can’t count on us to do the things we have traditionally done.’ When companies become inconsistent, consumer trust erodes, and I think that’s what we’ve seen here. Costco has been who they are; they continue to show up in that way, and people respect that.”

Pruitt-Haynes said she doesn’t believe Costco’s lawsuit was political in nature and instead wanted to do what was best for its bottom line. But she believes the company was comfortable in moving forward with the lawsuit against the Trump administration because customers already saw it as anti-Trump, given the DEI decision.

“There are other companies that I’m sure feel the same way but did not want to take the risk, quite honestly, of being targeted or showing up as anti-Trump administration,” Pruitt-Haynes said. “Costco is doing the opposite. They’re saying, ‘We’re going to be very loud and bold about it, and we’re going to trust that the people who also believe in that are going to, in essence, reward us for it.’”

Carol Spieckerman, a longtime retail analyst, speaker and B-to-B strategist who is president of Spieckerman Retail, said she also doesn’t believe Costco’s goal was to take an anti-Trump stance, but that it was instead to listen to its stakeholders and do what makes the most business sense.

“I don’t think Costco necessarily checked the political temperature before making these decisions. But hypothetically, even if they had, I think the calculus still favors them, because on the tariff side, tariffs are deeply unpopular,” Spieckerman said, adding that she also doesn’t believe many customers would boycott Costco over continuing its DEI programs. “Meanwhile, they’re probably likely to benefit from members who think Costco is standing up for fairness.”

Spieckerman also said Costco has handled these situations in an undramatic, unpolarizing way. On the other hand, she criticized Target for acting defensively or overexplaining its decisions, and being inconsistent in its messaging, in that it used to be known as a progressive company. Costco, she said, has been consistent throughout its business, from its pricing formula to its consistent improvement in the quality of its private-label products.

Costco has “held steady, whereas it looked like Target was doing these wild swings from ditch to ditch,” Spieckerman said. “I think Costco is getting consistency cred, if nothing else, and I think these decisions reinforce their brand promise rather than threaten it.”