Last year, Target increased its investments by more than 50% compared to 2020. The retailer also already offers more than 100 Black-owned brands, with the 2025 goal of offering 500 brands. Target dubbed its diversity initiatives the Racial Equity Action and Change (REACH) commitment.
In addition to issuing an update toward its goal, Target also announced the Roundel Media Fund, which will award more than $25 million in media to diverse-owned and founded brands through its in-house media company by 2025. Target stated it invested four times more with Black-owned media partners and doubled the amount of Black-owned partners since 2020. The retailer aims to invest 5% of its annual media budget with Black-owned partners since 2020. Interested BIPOC vendors can apply for the fund.
“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, Target, said in a statement. “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.”
Target initiated its pledges to diversify its investments in 2021. The retailer also launched its Forward Founders accelerator program to support Black-owned and diverse business owners. The retailer has already completed two classes, supporting more than 30 Black entrepreneurs, and has additional classes planned.
Target also took on multimillion-dollar contracts with global technology service provider World Wide Technology and Taylor Brothers Construction, a vendor supporting the company’s 2022 remodel program, as well as a new partnership with Bridgeforth Farms earlier this year to bring their sustainably grown cotton into the making of select products.
“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 and founding REACH committee member, said in a statement. “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.”