As DEI dies back, Sam’s Club CEO says his job is to create ‘an environment of openness’

“We serve all of America,” Sam’s Club CEO Chris Nicholas told BI. “That’s the definition of being inclusive.”

Dominick Reuter/Business Insider

Several companies — including Walmart — have recently walked back or softened their DEI policies.But Sam’s Club CEO Chris Nicholas says “openness” and “connection” remain critically important.”We serve all of America,” he told BI. “That’s the definition of being inclusive.”

Corporate DEI may be in retreat, but Sam’s Club CEO Chris Nicholas says the principles of diversity and inclusion remain as important as ever.

“If you’re willing to come here and work hard on behalf of our members, and form relationships that allow you to develop as a human being and as a leader, there’s nothing you can’t do at Sam’s Club,” he told Business Insider. “I think that’s true also of Walmart.”

Walmart, which owns Sam’s Club, is one of several companies that have recently walked back or softened their DEI policies following the election of Donald Trump.

The company said in November that it would wind down its Center for Racial Equity, stop providing data to the Human Rights Campaign, and end the use of terms like “DEI” and “Latinx” in official communications.

“We are willing to change alongside our associates and customers who represent all of America,” the company said at the time.

One thing that has already changed in recent years is the growth of Walmart (and Sam’s Club’s) data on just about every aspect of its business, and Nicholas says that has a tremendous leveling effect.

“The data leads us to the answer,” he said. “Not historical views or personal proclivities.”

The most obvious metric is whether something sells or doesn’t. Offering only a few thousand items in a warehouse means that each product must perform well or get cut.

Beyond that, Nicholas pointed to Sam’s Club’s 50,000-member community of shoppers who share feedback with the company and one another. By providing a sense of welcome and belonging, the company is better able to discover unique “treasure hunt” offerings that excite members, he said.

“We serve all of America,” he said. “That’s the definition of being inclusive.”

Sam’s Club’s larger rival, Costco, has also found itself in the political crosshairs over its diversity programs, which the company’s board forcefully defended against a shareholder challenge.

“As our membership diversifies, we believe that serving it with a diverse group of employees enhances satisfaction. Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings,” the Costco board wrote in December.

Nicholas said Sam’s Club, too, relies on the diversity of its members and employees to find and deliver the best and most interesting products, which is good for business.

“If you get stale, people will just — you know — they won’t engage with you,” he said.

DEI, as it has been understood and communicated for the last decade or so, may be on the way out, but Nicholas says deeper changes are here for the long term.

“My job is to create an environment of openness and expansive thought and connection, and I think we do a really good job of that,” he said.