MINNEAPOLIS — Minnesota-based Target said the company is on track to spend more than $2 billion with Black-owned businesses by 2025 as part of its effort to advance racial equity.
The effort was first announced in 2021, as the company made a 50% year-over-year increase in overall spending with Black-owned businesses. As of 2022, Target now offers more than 100 Black-owned brands for customers to choose from.
The Minneapolis retailer said part of their initiative will mean an additional 400 Black-owned businesses be added with a broad spectrum of offerings ranging from beauty-products to beverage items, and will increase spending at more Black-owned companies, from marketing to construction.
"At Target, our commitment to supporting Black-owned companies and advocating for racial equity touches every aspect of our business – including investing in underrepresented entrepreneurs, launching Black-owned brands at Target, working with Black designers and suppliers and increasing visibility through our marketing," said Christina Hennington, Target executive vice president and chief growth officer, and founding REACH committee member. "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. 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."
The company also announced the "Rounded Media Fund," which plans to award diverse-owned and founded brands with $25 million through their internal media company. The fund is designed to offset the cost for Target marketing programs established for Black, Indigenous, and people of color (BIPOC) brands.
Target says the company is also introducing 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. Since the programs start they have supported over 30 Black entrepreneurs and 60 diverse founders through two different classes. In addition Target is pledging 5% of their annual media budget to Black-owned media by the end of 2022, and have so far invested four times more and doubled the amount of Black-owned media partners.
In 2020 Target established its Racial Equity Action and Change (REACH) committee, composed of senior leaders from across the company who represent a diverse range of perspectives and expertise, to help guide the retailer's efforts and engage in the fight to end systemic racism in the U.S. while making a lasting impact in the Black community.