DEI at a Crossroads: New IADS White Paper examines the future of inclusion in global retail.

For years, diversity, equity and inclusion (DEI) has been treated as a standard component of corporate strategy. Yet as scrutiny grows and external pressures intensify, retailers are confronted with a direct
question: is DEI still a core business priority, or is it at risk of being deprioritised as circumstances change?
The 2025 IADS White Paper examines this moment and explores how DEI, when approached with clarity and long-term commitment, can strengthen organisational resilience, support performance and help retailers stay connected to their diverse workforces and customers.

Since its founding in 1928, the IADS has coordinated information between department stores worldwide and produced research to help them navigate evolving challenges. The association publishes an annual White Paper on a topic central to the industry, always from the perspective of department stores. The 2020 edition reflected on lessons from the pandemic. In 2021, it examined digital transformation and its organisational impact. The 2022 edition analysed sustainability, CSR and ESG. In 2023, the focus shifted to retail media and monetisation ecosystems, and in 2024, the White Paper highlighted the crucial role of middle management.

The 2025 White Paper investigates DEI at a time when commitments are being tested more visibly than in previous years. DEI programmes came under heightened scrutiny in 2024, and the signing of the U.S. Executive Order 14151 in January 2025 prompted immediate responses from several major North American companies. Within this context, the IADS examines how DEI operates inside global retail organisations, the realities retailers face across regions, and why maintaining consistent, meaningful DEI practices remains important for long-term performance and relevance.

From longstanding struggles to modern pressures: why DEI feels different today

Although DEI is now part of mainstream corporate discourse, many of the expectations placed on companies reflect issues that have persisted for decades. What we call DEI today emerged from civil rights efforts, labour movements and long-standing demands for fair treatment on the shop floor. In retail, where frontline teams have historically pushed for equal opportunity and safer working conditions, this legacy is evident.

Recent years have added layers of complexity. In the United States, some organisations report misconceptions about DEI and signs of “DEI fatigue,” often linked to unclear objectives or uneven implementation. This has unfolded alongside increased scrutiny, with stakeholders questioning whether companies are committed to meaningful inclusion or merely responding to external pressure.

This combination of historical context and contemporary pressures shapes the environment in which retailers must now operate. Understanding these roots helps explain why DEI remains both challenging and essential, particularly in a sector built on human interaction and diverse customer communities.

DEI as a driver of performance

The research identifies four consistent ways in which DEI strengthens organisational effectiveness when integrated into daily operations. Retailers with diverse leadership teams report stronger decision-making and greater agility. Employees who feel valued and respected are more likely to remain, thereby reducing turnover in a sector historically challenged by high turnover. Inclusive teams share information more effectively, reduce operational errors and collaborate more constructively. Moreover, retailers note that some of their strongest ideas originate from frontline teams, who interact with customers daily and bring essential perspectives to innovation.

A global imperative with local realities

The White Paper also highlights that DEI is shaped by local context. Cultural norms, regulatory environments, and demographic realities shape how inclusion is understood and implemented across Europe, the Middle East, Asia-Pacific, Africa, Latin America, and North America. While some markets emphasise gender parity, others prioritise ethnicity, disability, socioeconomic background or national integration. Expectations around DEI language and transparency also vary widely. For global retail groups, tailoring approaches to each region while upholding universal principles of fairness and opportunity has become a significant operational challenge.

Operationalising inclusion: shared responsibilities and practical action

Building inclusion inside a retail organisation is a shared responsibility. Progress occurs when leaders, managers and teams work together to turn stated values into daily behaviours. Across the companies examined in the 2025 IADS White Paper, both IADS members and non-member retailers demonstrate how practical, grounded approaches help transform DEI from intention into visible impact.

Retailers such as Nordstrom and Marks & Spencer have strengthened employee voice and openness, creating more consistent opportunities for teams to share concerns and contribute ideas. Tesco has positioned inclusion as part of doing the right thing for colleagues and customers, connecting DEI to commercial relevance. Among IADS members, Falabella, El Corte Inglés, Galeries Lafayette and the Chalhoub Group illustrate how cross-cultural training, career development initiatives and structured feedback cycles help diverse teams thrive and broaden pathways to advancement.

Several capabilities repeatedly prove essential to operationalising inclusion:

• Listening: understanding how employees from different backgrounds experience the organisation and identifying gaps between leadership perceptions and lived reality.
• Clarity: setting explicit behavioural expectations, ensuring that teams understand goals, responsibilities and decision-making criteria.
• Collaboration: strengthening alignment between stores and headquarters, crucial for international groups operating across diverse markets.
• Fairness in practice: ensuring recruitment, promotion and development processes are transparent and accessible.

These capabilities are reflected not only in formal programmes but in the interactions that define working life. Retailers that reduce unnecessary pressure on managers, support cultural competence and offer flexibility create a foundation for more equitable, engaged and resilient teams. When such habits take root, DEI becomes part of how the organisation works rather than an isolated initiative.

Turning insights into action

The 2025 White Paper goes beyond describing the state of DEI. It examines the organisational conditions that allow inclusion to take root and highlights the behaviours and structures that consistently support stronger outcomes for teams and customers. Drawing on examples from both IADS members and other leading retailers, the report illustrates how inclusion becomes more effective when supported by clear expectations, stable routines and regular dialogue across all levels of the organisation.

Rather than prescribing a fixed model, the White Paper offers guidance on where retailers can focus their efforts, grounded in real practices observed across markets. These insights are designed to help organisations reflect on how DEI can become a steady, integrated part of their operations, even as expectations and environments continue to shift.

The full IADS White Paper, “DEI at a crossroads: turning diversity, equity and inclusion into a long-term advantage for resilient retailers,” provides a deeper examination of the levers that strengthen inclusion and the actions that can support more resilient, engaged and connected teams.

Read the full press release below:

White Paper: DEI and department stores- IADS Press Release (English)

Livre Blanc: Grand magasins et Diversité - IADS Communiqué de Presse (Français)

Access the White Paper below:

Click here to view the table of contents

IADS White Paper- DEI at a crossroads in retail