Target Corp. will spend more than $2 billion with hundreds of Black-owned businesses by the end of 2025, making the pledge just as its home city of Minneapolis is grappling with the murder trial of the former city police officer who killed George Floyd. The cheap-chic retailer will also add products from more than 500 Black-owned companies across its aisles and help Black vendors expand their sales in big-box retail, it said in a statement Wednesday. Target currently carries more than 65 Black-owned brands, but declined to say what it currently spends with such companies.
Target’s pledge falls short of commitments made by retailers including Sephora and Macy’s Inc., who have said they will dedicate 15% of their shelf space or purchasing budget, respectively, to Black-owned businesses. The plan works out to about $400 million a year through 2025, or less than 1% of the average annual amount that it spent for merchandise over the last four years.
Target, however, sells a wider variety of items than the retailers that have signed on to the 15 Percent Pledge, including groceries and products from sectors where Black businesses are underrepresented. This can make sourcing commitments harder to meet.
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