Target Commits Over $2B To Support Black-owned Businesses
Target is committing over $2 billion towards supporting Black-owned businesses through the end of 2025, the retailer announced today, as part of a broader effort to use its “size, scale and resources to create opportunity” for those companies.
That expenditure will include marketing agencies, construction companies, facilities maintenance providers and product manufacturers, as well as other types of businesses. In addition, the Minneapolis-based chain will also increase the number of products from Black-owned businesses across its stores and online to more than 500.
Target is also launching Forward Founders, a program that works with early stage Black entrepreneurs to help scale their businesses in mass retail. The initiative was developed with the Target Accelerators Entrepreneurship Advisory Council, a seven-member group that convenes monthly to “address matters pertaining to equity and inclusion in the startup ecosystem,” according to its website.
“We have a rich history of working with diverse businesses, but there’s more we can do to spark change across the retail industry, support the Black community and ensure Black guests feel welcomed and represented when they shop at Target,” said Target EVP and chief growth officer Christina Hennington, in a statement. “The bold actions we’re announcing today reflect Target’s ongoing commitment to advance racial equity for the Black community. They also represent significant economic opportunity for hundreds of new Black-owned companies, who we look forward to doing business with for years to come.”
To accompany the announcement, Target released a video featuring comments from leaders of Black-owned brands that sell products at its stores, including Pernell Cezar, CEO and co-founder of BLK & Bold Specialty Coffee.
Today’s announcement is one of several steps taken by Target, the eighth-largest retailer in the U.S., to address racial inequalities in business. Last summer, the company established the REACH (Racial Equity Action and Change) committee to help it “accelerate our ongoing diversity, equity and inclusion strategy.” In September, Target pledged to increase representation of Black team members across all levels of its business by 20% over the next three years.
In June, Target and the Target Foundation committed a combined $10 million to support rebuilding efforts in Minneapolis following the riots sparked by the death of George Floyd.
Other leading U.S. retailers have also made financial pledges to Black-owned businesses over the past year. In June, Walmart and the Walmart Foundation announced a $100 million package to create a new center to support philanthropic efforts in racial equality in finance, healthcare, education, and criminal justice. Elsewhere, stores like Banana Republic and Macy’s have joined the 15% Pledge, an organization calling on major retailers to commit at least 15% of their shelf space to Black-owned businesses.
