e back public Pride Month engagements this year. This includes activities such as sponsoring pride events, selling pride-themed merchandise, or even posting supportive messages of LGBTQIA+ rights on social media. The retail industry’s diminishing visible support for Pride Month follows the precedent set last year when retailers like Target and Nike reduced the number of stores carrying Pride-themed products after receiving notable backlash in 2023.  While pulling back on Pride-related moves may temporarily satisfy more conservative shoppers, retail and advocacy experts warn that this strategy could backfire in the long run. As Brian Ellner, the managing director of a global advisory and advocacy firm APCO, stated, “This short-term retreat [on supporting Pride] is creating long-term risks for some brands. While policy and politics can, and do, change, values-led companies need to prioritise their stakeholders and think beyond the immediate political moment.” The retail industry’s rocky relationship with Pride Month Since Pride Month was first officially recognised by the government in 1999, the retail industry has supported Pride to varying degrees over the past few decades. Amin Grinstein, a marketing professor at Northeastern University, noted that corporate social and brand activism peaked between 2016 and 2022. By 2023, Gravity Research observed a 60 per cent decrease in Pride engagement across major companies between 2023 and 2024. This decline has been attributed to factors such as the growing social power of conservative voices, including Robby Starbuck, and a noticeable pull-back on diversity, equity, and inclusion (DEI) initiatives post-President Trump’s electoral win in November 2024.  As Gravity Research’s study revealed, 61 per cent of the executives surveyed cited pressure from the new administration as the cause for the change, followed by 39 per cent who expressed concern over a conservative backlash. This is not an unwarranted concern considering the Bud Light controversy of 2023, when the alcoholic beverage brand featured trans content creator Dylan Mulvaney in an ad, then quickly took down the commercial following the backlash from conservative consumers.  However, LGBTQIA+ adults make up over 7 per cent of the US population, with nearly 25 per cent of Gen Zers identifying as part of this community.  Additionally, as corporate advisory firm LGBT Capital reported, the LGBTQIA+ community has an estimated purchasing power of $3.9 trillion worldwide, with the US estimated to make up about $1.1 billion of that total.  Aside from the ethical importance of standing up for this often-marginalised community, there may be financial consequences for retailers that undervalue this specific consumer segment.  Retailers like Target have already experienced struggling sales and worsened customer perception as a result of their pullback on DEI, and in today’s political climate, consumers are keeping tabs on companies’ actions more closely than ever.  What does authentic allyship look like in the retail industry in 2025? While some brands have possibly been guilty of performing “rainbow capitalism” – in other words, superficial or inauthentic shows of support during Pride Month – to woo LGBTQIA+ consumers, other retailers have stayed true to their roots on this matter.  For example, Mac Cosmetics has shown its support for the LGBTQIA+ community via collaborations and partnerships with queer icons like drag queen RuPaul and more recently, singer Kim Petras. One hundred per cent of the profits from Mac Cosmetics’ limited-edition drop, a Viva Glam Lipglass Air co-created with Petras, will go towards charitable organisations that support the LGBTQIA+ community. Additionally, Mac will donate $1 million to Viva Glam charity partners, which include The Trevor Project, Hetrick-Martin Institute and It Gets Better. “Viva Glam is the heart of MAC,” stated Aïda Moudachirou-Rebois, global general manager of Mac Cosmetics. “Pride Month is an amazing time to also re-engage in those meaningful conversations. Because those conversations are important all year round.” Brands like Mac Cosmetics and Levi’s have earned consumers’ trust with their consistent contributions and support for the LGBTQIA+ community.  “It is clear that if you have made DEI and supporting Pride a big element of your brand historically, it is going to be hard to shift away without being seen as betraying your values,” Alison Taylor, a clinical associate professor at the NYU Stern School of Business and author of Higher Ground: How Business Can Do the Right Thing in a Turbulent World, told Inside Retail. “You will get more flak than brands that were less forward on the issue, and should expect this. That said, you also need to protect your retail staff, and the threats and risks are real. Support for inclusion in general seems a good value for retailers, and Pride campaigns need to be framed in that way,” she added. “The best thing to do is to engage workers and LGBTQIA+ stakeholder groups on how you should approach the topic in a way that would feel fair and like you are staying true to yourself while exercising your duty of care. Then, at least you can say you based your decisions on something.”  Similarly, Brian Ellner, APCO’s managing director, stated, “Now is the moment for values-led businesses to really lead. Start with an understanding of what your employees, customers, and partners expect of you. Set clear, transparent measures for why and how you support the LGBTQ+ community. Ground your engagements in impact, not virtue signaling. And prepare your teams with scenario planning. This will look different for every company, but can help withstand the changing political tides. “Building trust takes time, and once lost, it’s an uphill battle to regain it. I encourage companies to be courageous and stand by their values, now and always. There are ways to navigate this moment thoughtfully and preserve the trust of customers, employees, and other stakeholders.”