Target boosting spending at Black-owned businesses

NEW YORK — Target will spend a total of more than $2 billion at Black-owned businesses by 2025 as part of its effort to advance racial equity.

That’s a significant increase in overall spending on Black-owned businesses, according to Target, though it declined to be more specific Wednesday.

The Minneapolis retailer will add a broad spectrum of products from more than 500 Black-owned businesses and will increase its spending at more Black-owned companies, from marketing to construction.

It will also introduce new resources, like a dedicated team to help Black-owned suppliers scale their businesses to work with mass chains. The Forward Founders program builds off Target’s accelerator program that helps entrepreneurs.

Target and other corporations have been expanding ties with Black-owned suppliers, rethinking marketing and embracing other initiatives in the aftermath of the death of George Floyd last summer that led to protests nationwide against policy brutality and racial inequity.

Jeffrey Robinson, associate professor and academic director of The Center for Urban Entrepreneurship & Economic Development at Rutgers Business School said Target has the right approach, but the number feels “low” given the size of the retailer. For the fiscal year that ended Jan. 30, Target generated annual sales of $93.5 billion.

“I applaud them for making the commitment, but let’s see if they can exceed it,” he said.