As consumers increasingly expect brands to engage with social issues, diversity and inclusion (D&I) have become strategic priorities also for retailers. This study investigates how D&I initiatives implemented by retail firms affect brand reputation, trust and loyalty. Drawing on a longitudinal design, we surveyed representative samples of Italian consumers in 2022, 2023 and 2024. Structural equation modeling was used to test the relationships between perceived D&I commitment, awareness and key brand outcomes. Results show that commitment to D&I drives awareness and improves reputation, which in turn fosters trust and loyalty. While awareness alone does not enhance reputation. It contributes to loyalty. The findings emphasize the strategic relevance of D&I in building long-term consumer relationships and the impact as a form of social sustainability in retail.