Costco Faces MAGA Boycott After Defending DEI Policy. Here Are the Details

Costco is the center of a MAGA-based backlash after announcing that it would not give up its DEI (diversity, equity, and inclusion) policy. This has angered extreme fans of the incoming president, who have been in support of companies ditching their DEI policies in recent months. Let’s take a look at the details of this latest controversy.

Costco Faces MAGA Backlash and Boycott

According to Newsweek, while DEI programs in the workplace became prevalent over the previous decade, they have recently faced greater scrutiny from both a legal and cultural standpoint. Several corporations have rolled back their DEI projects following boycotts spearheaded by conservative consumers, including Walmart, Tractor Supply, Ford, and Lowe’s.

Project 2025, a collection of proposals advocated by some proponents of the upcoming Trump administration, mentions eradicating DEI practices in both the public and commercial sectors among the major priorities of the next conservative government.

When the board of directors of Costco denied calls to discontinue its DEI program, which shareholders characterized as “illegal discrimination,” the MAGA movement reacted negatively.

The board defended the company’s current policy when a group of shareholders demanded a “report on the risks of maintaining DEI efforts,” stating, “Our efforts around diversity, equity, and inclusion follow our code of ethics.” Many Trump supporters were incensed by the defense, and some even called for a boycott on social media.

But despite the blathering, Costco remains unfazed. “Our Board has considered this proposal and believes that our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary,” the company said in a statement. “Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members and suppliers. Our efforts around diversity, equity and inclusion follow our code of ethics.”

The Company Remains Popular

As part of its efforts to remain unbothered, the company also recently announced that it will be opening more locations nationwide this year.

According to USA Today, Costco announced six new stores opening:

• Brentwood, California
• Genesee County, Michigan
• Highland, California
• Prosper, Texas (March 14)
• Sharon, Massachusetts (March 1)
• Weatherford, Texas (March 15)

With the upcoming additions anticipated to open in March 2025, the membership warehousing behemoth will have more than 900 locations worldwide.

Two new stores will open in Texas, and two will open in California, where Costco opened its 897th store in Pleasanton on Nov. 27 and thousands of people stayed overnight to be among the first to enter. “The Pleasanton opening set a new Costco record for the highest-ever first-day sales for a U.S. warehouse at $2.9 million,” CEO Ron Vachris said last month on a call with financial analysts.

It intends to open 29 new locations in fiscal year 2025, which concludes on Aug. 31, 2025. Of those, 26 will be new constructions, and three will be relocations.

Vachris said in December that 10 of the additional locations would be located outside of the U.S.

He claims that Costco opened seven additional locations during the first quarter of its fiscal year 2025, which concluded on Nov. 24. One of these buildings was a conversion from an old retail space, while the other four were outside the United States.

In other news, the retailer might be in trouble with the Teamsters despite the company’s improved growth. The International Brotherhood of Teamsters accused the big-box retailer of breaking union contracts last month and threatened to strike.

The union accused Costco of unfair labor practices for ejecting union representatives, intimidating and harassing employees for wearing Teamster apparel and buttons, and altering the locks on union bulletin boards to prevent future updates. The International Brotherhood of Teamsters represents 18,000 Costco workers nationwide.