What Does This Mean For Black Brands?

Target joins the growing list of companies rolling back its diversity, equality, and inclusion (DEI) initiatives. As a retailer known for featuring Black-owned brands like The Lip Bar, Black Girl Sunscreen, Tabitha Brown, Donna’s Recipe, there are concerns over how potential boycotts may impact Black founders.

Target ends DEI goals

In a memo shared with employees, the company said it will end its three-year DEI goals, concluding its Racial Equity Action and Change (REACH) initiatives in 2025 and end a program focused on carrying more products from Black- or minority-owned businesses.

The memo was sent to staff last Friday by Kiera Fernandez, chief community impact and equity officer at Target. “Many years of data, insights, listening, and learning have been shaping this next chapter in our strategy,” Fernandez said in the memo, viewed by CNBC.

Target championed DEI in the past, stating that DEI efforts were “equitable access to career advancement” and “equitable business decisions that increase relevance with diverse guests and support economic inclusivity.”  However, the company has announced that it will stop engaging in all external diversity-focused surveys; it is “further evaluating” corporate partnerships and changing its “supplier diversity” team to “supplier engagement.”

How are Black founders responding?

Part of Target’s DEI goals was to expand Black representation by 20%. Now, the company hosts several small independent Black-owned brands stocked at Target. Brands include The Lip Bar, Black Girl Sunscreen, and Tabitha Brown’s collection.

Some of these business owners have addressed their concerns about Target’s latest move on social media. In an Instagram video, Brown explains that she understands the desire for Black communities to boycott the retailer but emphasizes that so many people will be affected. “Our sales will be hurt; and if anyone knows business, it doesn’t just happen overnight,” she says.

“If we all decide to stop supporting said businesses and say, ‘I can’t buy nothing from there,’ then those companies get to say, ‘Oh, your products are not performing,’ and they can remove them from the shelves and then put their preferred businesses on the shelves. And then what happens to all the businesses who’ve worked so hard to get where they are? Then, what happens?” she said.

Melissa Butler, founder of the Lip Bar, said she was disappointed with Target’s decision to end its DEI initiatives but wasn’t shocked by the recent move. “I’m not that surprised. I always thought that the 2020 commitments were a farce,” she added.

Like Brown, she also recognizes why some Black people will choose to boycott the retailer. Still, she says, “I want people to be aware that by not shopping at these stores you are impacting the hundreds of Black-owned businesses, and women-owned businesses and brown-owned businesses that are in these stores.”

How are Black consumers responding?

Some Black consumers haven’t responded well to Brown and Butler’s comments. While Brown is receiving more criticism, many Black people think that both business owners are centering themselves in this discussion. JerLisa_Nicole tweeted that responses come as “I got a seat at the table, and I don’t want to leave cause the food good here.”

Others, however, feel that the conversation is nuanced. Black consumers have the right to boycott Target. However, Black business owners will be affected, which can affect their sales. User KikiCamille said both sides have extremely valid points in the Target boycott conversation. “What I think we’re failing to realise is, that alone is the most important point in this entire debate. We’re dammed if we do & dammed if we don’t.”

It’s a complicated but necessary conversation. Black people want to shop where they are valued. But they also don’t want to harm the pockets of Black business owners. These conversations will undoubtedly continue to unravel if more companies decide to roll back on their DEI initiatives.

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Image: Target