In an update on its progress to invest $2 billion in Black-owned businesses by 2025, the retail giant Target announced it’s increased the amount of money it’s spent with Black-owned companies and suppliers.
According to a Target release, the retailer has increased its investments in Black-owned brands, companies and suppliers by more than 50 percent compared to 2020. Additionally, Target has more than doubled the number of Black-owned products it carries to more than 100 with representation across every major product category.
“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,” Christina Hennington, Target executive vice president and chief growth officer said in a statement.
Target has increased the number of Black-owned beauty products by 65 percent compared to 2020. More than 200 books from Black authors have been added over the last year and its food and beverage offerings will include 50 Black-owned brands by the end of the year.
Target also sells Black-owned products in its home goods, toys and clothing sections. The retail giant has also increased investments in Black marketing agencies, construction companies, facilities maintenance and more by more than 50 percent in 2020.
Target also announced it’s introducing a funding program through its in-house media company, Roundel to increase the exposure of diverse-owned brands through paid media. The Roundel Media Fund will award more than $25 million to diverse-owned and founded brands by the end of 2025. Interested BIPOC vendors can apply to the fund here
“The impact that the Roundel Media Fund’s $25 million investment can create is powerful. For example, we tested this opportunity during Black History Month and saw a 40% average sales lift for the more than 20 diverse-owned brands that participated,” Sarah Travis, president of Roundel said.
“Ultimately, we strive to be a true partner to BIPOC businesses, and this involves a continued investment to help widen and deepen their capabilities so they can grow and prosper while continuing to connect with the audiences they serve.”
One of the things Target learned when trying to increase its diversity goals is that Black-owned and minority businesses need assistance scaling up their processes to work with a national chain. As a result, Target launched the Forward Founders accelerator program designed to help Black-owned and diverse businesses increase their potential and scale-out faster and more efficiently.
Since its launch Forward Founders has supported more than 30 Black entrepreneurs and a total of 60 diverse founders.