Retailers

Target Doubles Number of Black-Owned Brands on Its Shelves

Retailer launches new fund to increase exposure of diverse-owned brands through paid media
Target REACH
Illustration courtesy of Target

In an update on its progress to invest $2 billion in Black-owned businesses by 2025, Target announced it has increased the amount of money it has spent with Black-owned companies and suppliers by more than 50% and doubled the number of Black-owned brands across its assortment to more than 100, compared to 2020 numbers.

The Minneapolis-based retailer also announced a new initiative, the Roundel Media Fund, that will increase exposure of diverse-owned brands through paid media. Designed to offset the cost of marketing programs at Target, the new fund will award more than $25 million in media to Black, Indigenous and people of color (BIPOC) brands by 2025.

Through the $2 billion investment—announced in April 2021 as part of the company's Racial Equity Action and Change (REACH) strategy, which focuses on accelerating diversity, equity and inclusion efforts—Target’s goals include adding products from more than 500 Black-owned brands; investing 5% of its annual media budget with Black-owned media by the end of 2022; and supporting early-stage Black-owned and diverse businesses through the already launched Forward Founders accelerator program.

Christina Hennington, EVP and chief growth officer for Target and founding REACH committee member, said Target is “on track” to meet these goals. In a release, Target said it has invested four times more with Black-owned media partners and doubled the amount of Black-owned partners since 2020, in addition to supporting more than 30 Black entrepreneurs through Forward Founders.

Target also reported that its beauty assortment saw a 65% increase in Black-owned brand offerings since 2020 and that more than 200 books from Black authors were added over the last year. Additionally, its food and beverage assortment will include 50 Black-owned brands by the end of 2022.

“While there’s more to be done, our team has approached this critically important work with passion and conviction, and we are on track to meet the goals we established to advance racial equity through the full impact of our company,” Hennington said in a release. “We will continue to ensure Black-owned businesses have a seat at the table so that all guests feel welcomed and represented when they shop at Target—and we’ll bring transparency to the progress we’re making to create lasting change for retail and beyond.”

Target Scholars

Target also recently provided an update on its partnership with the United Negro College Fund on a program to support 1,000 students studying technology, design and leadership at Historically Black colleges and universities across the country. That class of Target Scholars has completed its freshman year and to celebrate, Target said it will offer each student an additional $10,000 over the next three years to support the completion of their degree, plus continued access to resources such as coaching, mentoring, internships and more.

“Target is continuing our longstanding work to invest in and accelerate the next generation of Black talent,” Damu McCoy, VP of talent acquisition, said in a release. “The Target Scholars program is one example of that overall commitment, providing both financial support and the mentorship and networking resources to further strengthen students’ experiences and help them reach their career destination.”

 

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