Dive Brief:
- Following up on its promise to help Black guests feel more included, Target on Wednesday announced its commitment to spending $2 billion with Black-owned businesses by 2025.
- The retail giant plans to work with over 500 Black-owned businesses to add products across different categories, according to a company press release. Target said it also intends to boost its spend with Black-owned firms in other areas such as marketing agencies, construction companies and facilities maintenance providers.
- Alongside the investments, Target plans to create new resources, including a program called Forward Founders to engage with Black-owned startups earlier and a team dedicated to helping its Black vendors scale their operations in mass retail.
Dive Insight:
The mass merchant concluded its fiscal year last month promising to make Target a more relevant and welcoming place for Black guests. This commitment came after the death of George Floyd sparked nationwide protests against systemic racism last summer.
Brands have responded to the protests in a variety of ways, including releasing statements addressing racism as well as investing and partnering with Black-owned brands. Ulta in February announced it would double the number of Black-owned brands on its shelves by the end of the year, and Ipsy committed $7 million to market and develop products from Black-owned beauty brands in January.
Target also has its share of initiatives. The Wednesday announcement stems from Target's broader social justice and racial equity pledge. Target introduced its Racial Equity Action and Change (REACH) committee last year, which includes senior leaders with "a diverse range of perspectives and expertise" within the company to guide the retailer's efforts to end systemic racism.
During Black History Month, the retailer also released an exclusive collection produced by and made for the Black community.
Upon announcing the $2 billion commitment, Christina Hennington, Target's executive vice president and chief growth officer, said the ongoing initiatives symbolize Target's dedication to advance racial equity and economic opportunity for the Black community.
Hennington said the big-box retailer had 50 Black-owned and Black-founded brands in its beauty assortment, in a call with investors and analysts last month. The recent press release said Target intends to increase that assortment.
"Over the last few years, we've listened carefully to our multicultural guests as a whole and we recognized there was an opportunity to do more for Black guests, so we've added more brands and products that we know they love," Hennington said in March. Hennington added that Target is "committed to doing even more in key categories through our own brands and partnerships, building on our progress to ensure that we're delivering on our purpose of helping all families discover the joy of everyday life."
