Costco is emerging as a notable outlier among major US retailers, maintaining its commitment to diversity, equity, and inclusion (DEI) programs even as competitors like Walmart and Target scale back their initiatives in response to political and legal pressures. This divergence comes as the company continues to thrive, defying expectations that prioritizing DEI would negatively impact business performance.
The shift in corporate strategy follows an executive order signed by President Donald Trump in January 2025, directing federal agencies to investigate DEI efforts at major public companies and large nonprofits, with warnings of potential legal action against firms whose programs are deemed discriminatory. Target announced days after the order it would wind down key pieces of its long-standing DEI strategy, while Walmart began rolling back its diversity policies months earlier, shifting language and reducing the visibility of internal equity efforts. Other major brands, including McDonald’s, John Deere, Amazon, and Meta, have also scaled back or rebranded diversity work.
Costco’s board and chief executive Ron Vachris have repeatedly and publicly reaffirmed the warehouse chain’s DEI commitments, despite the political climate. This decision appears to be paying off, with the company’s business continuing to flourish. The contrast underscores a broader split in corporate strategy during the Trump era, highlighting the tension between political considerations and corporate values.
Beyond DEI, Costco is also distinguishing itself from competitors in its approach to retail theft, a growing problem plaguing Walmart and Target. According to a recent annual report, Costco attributes its lower inventory losses to strict control of entrances and exits, and its membership format. Unlike Walmart and Target, which have expanded self-checkout options, Costco limits its use of self-checkout, reducing opportunities for theft. Shoppers must present a paid membership – often with photo identification – to enter, and every purchase is checked against a receipt before customers leave the store.
As of February 16, 2026, Costco has 121 stores with rooftop solar installations worldwide, 95 of which are located in the United States, according to Richard Galanti, the company’s chief financial officer. However, Costco, Walmart, and Target did not disclose specific barriers to expanding rooftop or parking lot solar panel installations.
Environment America estimates that Walmart possesses the largest solar potential of any retailer in the US, with approximately 5,000 stores and over 783 million square feet of rooftop space. Leveraging this potential could generate enough electricity to power more than 842,000 homes. Target currently has rooftop solar at 542 locations, generating enough energy to meet 15% to 40% of those properties’ energy needs. Home Depot has 75 completed rooftop solar projects, with 12 under construction and more than 30 planned.
While the economic benefits of solar energy are clear, challenges remain. Aging rooftops, regulatory hurdles, labor costs, and the complexity of integrating solar installations into existing infrastructure are all cited as barriers to wider adoption. Representatives from WE ACT for Environmental Justice emphasize the importance of local hiring and community benefit-sharing in any expansion of solar energy projects.
Rep. Sean Casten of Illinois attributes the slow progress on solar adoption to a disjointed federal policy that subsidizes fossil fuel extraction while penalizing clean energy production. He argues that a more supportive policy environment is needed to incentivize investment in renewable energy sources.
