Apr 07, 2021
Target to spend more than $2 billion at Black-owned businesses in racial equity push
This news has been received from: CBS News
All trademarks, copyrights, videos, photos and logos are owned by respective news sources. News stories, videos and live streams are from trusted sources.
Target will spend more than $2 billion at Black-owned businesses by 2025 as part of its effort to advance racial equity. That's a significant increase in overall spending on Black-owned businesses, according to Target, though the retailer declined to be more specific Wednesday.
The Minneapolis-based company said it will add a broad spectrum of products from more than 500 Black-owned businesses and will increase its spending at more Black-owned vendors for the 1,900-store chain, from marketing to construction.
It will also introduce new resources, like a dedicated team to help Black-owned suppliers scale their businesses to work with mass retail chains. The Forward Founders program builds off Target's accelerator program that helps entrepreneurs.
Target and other corporations are expanding ties with Black-owned suppliers, rethinking marketing and product choices and embracing other initiatives in the aftermath of the killing of George Floyd in Minneapolis last summer that led to protests nationwide against policy brutality and racial inequity. Prosecutors began their case Monday against the former Minneapolis officer charged in the 46-year-old's death.Pandemic's "cataclysmic" impact on small busi... 01:36
"We have a rich history of working with diverse businesses, but there's more we can do to spark change across the retail industry, support the Black community and ensure Black guests feel welcomed and represented when they shop at Target," Christina Hennington, Target's executive vice president and chief growth officer, said in a prepared statement.
Black-owned small businesses have taken the biggest hit during the coronavirus pandemic. An H&R Block survey of almost 3,000 small businesses found that 53% of Black business owners saw their revenue drop by half since the pandemic started, compared to 37% of White owners who reported similar dives. Black business owners also had more trouble establishing an online presence for their company and were more likely to have customers submit late payments, the survey said.
News Source: CBS News
Minority-Led Businesses Take Biggest Hit Amid COVID-19 Pandemic
By: KDKA-TV News Staff
Of nearly 10,000 small businesses that were surveyed last fall, the minority-led firms reported steeper declines in sales than white-owned businesses.
They also had a harder time accessing capital.
When the businesses did get funds, they were less likely to receive the full amounts requested.