Legislative Stonewalling: How DEI Rollbacks and Gender Legislation Are Reshaping Fashion Retail

Over the past few years, the fashion industry has increasingly embraced diversity and inclusivity in its designs, messaging, and product offerings. Gender‐neutral collections and inclusive branding have become key drivers for both luxury designers and mass-market retailers. Recently, however, a series of changes at the federal level have affected how inclusive language is used in public resources.

One notable change occurred on the Stonewall National Monument website, where references to transgender and queer identities have been removed, leaving the acronym as “LGB.” In parallel, mass-market retailers continue to innovate in response to consumer demand, as seen with Nike’s and PacSun’s gender-neutral clothing collections.

Read on for an overview of these developments and an examination of the challenges retailers and brands face as they navigate an evolving regulatory and cultural landscape.

Recent Changes to the Stonewall National Monument Website

On Feb. 14, 2025, the National Park Service (NPS) updated the Stonewall National Monument website. In this update, the website no longer includes the term “transgender” or the letters representing transgender and queer identities — commonly abbreviated as “T” and “Q+” in the LGBTQ+ acronym. Instead, the site now refers to individuals as “lesbian, gay, and bisexual (LGB)”. The Stonewall National Monument, located in Greenwich Village, New York City, is a historic site that commemorates the 1969 Stonewall riots — a pivotal moment in the history of LGBTQ+ rights.

According to recent reports, this website revision is aligned with new federal directives that require official communications to adhere to a binary definition of sex. The change has raised concerns among advocates who point out that such revisions do not fully acknowledge the historical role played by transgender and queer individuals in the events of 1969. However, the focus here is on understanding the factual basis of these changes and the challenges they present for the fashion industry.

The Broader Context and Developments

The Stonewall website’s alteration is part of a wider set of updates affecting federal websites. These websites now prioritize specific language regarding gender identity. In this context, the updated language reflects a more restrictive definition of gender that only recognizes male and female categories. While these changes are administered at a federal level, their effects are not confined to public-sector communications. They send a signal throughout society, influencing perceptions about inclusive language and historical narrative.

This development represents a unique challenge for retailers and brands that have invested in inclusive product lines. Many brands have built their identity on the ability to celebrate a broad spectrum of gender identities. Inclusive language and imagery have been essential elements of marketing campaigns, runway shows, and product design, especially in gender‐neutral fashion.

Implications for Inclusive Branding and Historical Narratives

For decades, inclusive narratives have played a central role in driving innovation within fashion. The Stonewall riots are recognized not only as a catalyst for the LGBTQ+ rights movement but also as a testament to the diverse contributions of all community members, including transgender individuals. The recent website changes, which now omit the “T” and “Q+,” have sparked a debate about how history is represented. From a purely factual standpoint, the changes mean that future visitors to the Stonewall National Monument website will see a version of the historical narrative that focuses exclusively on lesbian, gay, and bisexual identities.

This adjustment can influence how brands perceive the importance of inclusivity in their narratives. For companies that have relied on inclusive messaging as part of their identity, the challenge is to continue celebrating a full spectrum of identities despite external pressures to conform to narrower definitions.

The Challenge for Retailers and Brands

Retailers and fashion brands now face a dual challenge. On one side, they must address external pressures — such as changes in federal communication guidelines and broader legislative trends — that may discourage the use of inclusive language. On the other side, consumer demand for authentic, inclusive products continues to grow.

Maintaining Inclusive Product Lines

Brands that have established themselves by offering gender‐neutral collections must find ways to communicate their commitment to inclusivity without relying on terminology that may be subject to revision. Designers are exploring alternative methods to showcase diversity through imagery, storytelling, and the design of their products. This might include emphasizing the functionality and adaptability of garments rather than focusing solely on descriptive language.

Balancing Regulatory Compliance and Brand Identity

While federal language guidelines on inclusive terminology have shifted on government websites, retailers retain full discretion over their external communications. Fashion brands face the challenge of aligning their messaging with the growing cultural expectation for inclusivity while preserving their unique brand ethos. This balancing act is crucial in a market where diversity and inclusivity are key values for consumers and significant differentiators in a competitive landscape.

Considering Market Position and Consumer Trust

Inclusive practices have proven to be economically beneficial. Studies indicate that brands with inclusive leadership and diverse product offerings often see increased customer loyalty and stronger market performance. However, if retailers are perceived as compromising on inclusivity due to external regulatory pressures, they may risk alienating a segment of their consumer base that values these principles.

Case Study: PacSun’s Gender-Neutral Kids’ Collection

A significant example of how retailers are responding to the demand for inclusivity is demonstrated by PacSun. Known for its youth-focused, California-inspired style, PacSun has been at the forefront of introducing gender-neutral collections. In 2020, PacSun introduced its first unisex collection, and by 2021, it had launched PacSun Kids — a dedicated line offering gender-free clothing for children ages 4 to 14.

Key features of PacSun Kids include:

• No-rules, no-labels approach: The collection is designed to allow children to express themselves freely, without being restricted by traditional gender norms.
• Broad range of products: The line includes graphic tees, sweatshirts, pants, jackets, and accessories that emphasize comfort and self-expression.
• Sustainability focus: Alongside inclusivity, the collection is built on sustainable practices, aligning with the growing consumer demand for eco-friendly products.
• Multi-channel availability: The collection is available online, through wholesale partners, and via dedicated pop-up shops at flagship stores, ensuring wide accessibility.

PacSun’s approach demonstrates that even as federal language guidelines may shift, the market for inclusive products remains robust. Mass-market brands that invest in gender-neutral lines can effectively cater to a new generation of consumers who value diversity and sustainability.

Broader Market Trends and Consumer Demand

Consumer sentiment in today’s market strongly favors inclusivity. Young shoppers, in particular, have grown up in an era where gender is often viewed as a spectrum rather than a binary concept. This has led to a significant demand for gender‐neutral and inclusive products across various segments — from luxury fashion to everyday apparel.

Economic advantages of inclusive offerings include:

• Brand loyalty: Inclusive product lines build stronger emotional connections with consumers, leading to higher customer retention rates.
• Market expansion: By appealing to a broader demographic, inclusive brands can tap into previously underserved market segments, which is beneficial both economically and in terms of cultural relevance.
• Differentiation: In a crowded market, a clear commitment to inclusivity can serve as a key differentiator, setting brands apart from competitors that may offer more conventional, gender-specific options.

Retailers that successfully communicate their commitment to inclusivity through product design, marketing, and corporate practices are likely to see continued growth. Conversely, brands that appear to compromise on these values in response to external pressures may find it challenging to maintain consumer trust, depending on their audience.

The Path Forward: Opportunities and Strategies

Despite the challenges presented by recent changes, there are several strategies that retailers and brands can adopt to maintain their commitment to inclusivity and to address market demands:

• Emphasize visual storytelling: With potential limitations on inclusive terminology, brands can focus on visual storytelling — using imagery and narrative to communicate diversity and inclusivity. High-quality photography, diverse model casting, and well-crafted brand stories can help convey the desired message without relying solely on specific language.
• Strengthen collaborative efforts: Collaboration between fashion brands, advocacy groups, and technology partners can lead to creative solutions that uphold inclusive practices. Joint initiatives and partnerships can help ensure that the contributions of all community members are recognized and celebrated.
• Enhance transparency: As regulatory environments evolve, transparency in sourcing, production, and corporate policies becomes increasingly important. Clear communication about sustainability practices and inclusivity efforts can build consumer trust and position brands as industry leaders.
• Adapt marketing strategies: Retailers can adjust their marketing strategies to focus on the functional and aesthetic benefits of their inclusive collections. By highlighting the versatility, comfort, and quality of gender-neutral products, brands can appeal to consumers on a practical level while still promoting their core values.
• Invest in innovation: Leveraging emerging technologies such as AI-driven design and virtual try-on experiences can help brands create inclusive collections that meet diverse consumer needs. These technologies enable designers to experiment with new silhouettes and materials, ensuring that gender-neutral offerings remain dynamic and appealing.

Navigating the Intersection of Legislation and Fashion

The recent updates to the Stonewall National Monument website underscore a broader shift in language and regulatory frameworks. While these changes affect how history is represented on federal platforms, they also present a set of challenges for the fashion industry — challenges that extend to brand identity, product innovation, and market positioning.

For retailers and brands, maintaining a commitment to inclusivity in an environment that may increasingly prioritize more restrictive definitions of gender requires a strategic and multifaceted approach. From leveraging new technologies to enhancing visual storytelling and embracing transparent practices, the industry has multiple avenues to continue offering products that resonate with a diverse consumer base.

Looking ahead, fashion brands will need to balance regulatory requirements with consumer expectations. As the market continues to evolve, the ability to innovate and collaborate will be critical in ensuring that the spirit of inclusivity remains central to fashion. Ultimately, the challenge is not only to navigate changing language guidelines but also to preserve the values that have long defined the industry — values that foster creativity, promote diversity, and celebrate the full spectrum of human identity.

Retailers and brands that successfully address these challenges are well-positioned to thrive in a market increasingly defined by the demand for authentic, inclusive, and sustainable products.