Target will spend $2B at Black-run businesses

Retailer to add many products from over 500 such companies.

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 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 are expanding ties with Blackowned 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. More than 20 companies, including Sephora, Gap and Macy’s, have signed on to a nationwide campaign called 15 Percent Pledge, which aims to have companies commit to at least 15% of their products on their shelves to Black-owned businesses — in line with the U.S. Black population. Target’s commitment is unaffiliated with that campaign.

Aurora James, founder and creative director of Brother Vellies, started 15 Percent Pledge as a nonprofit advocacy group last year. She said in an interview with The Associated Press this week that the biggest problem for Black-opened businesses is lack of access. James says her group is building a database of Black-owned businesses that helps retailers and brands connect with Black entrepreneurs.

Target’s announcement comes as the trial of former police Officer Derek Chauvin, charged with second-degree murder and third-degree murder in Floyd’s death, is underway in Minneapolis.

“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 Christina Hennington, executive vice president and chief growth officer, in a prepared statement.

BESS ADLER/BLOOMBERG 2019 Target will add a spectrum of products from Black-owned businesses and boost spending at Black-owned companies, from marketing to construction.