Target (NYSE:TGT) said it will hire more Black-owned companies, launch a program to identify and support promising Black entrepreneurs and add products from more than 500 Black-owned brands to its shelves or website.
Altogether, the discounter said Wednesday that it will spend more than $2 billion with Black-owned businesses by 2025.
"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," Target’s Chief Growth Officer Christina Hennington said.
Companies have spoken out about diversity and inclusion as consumers pay attention and some direct their dollars toward businesses that align with their values. Generation Z — the group of teens and early 20-somethings who are aging into shopping and establishing relationships with brands — care more about social justice compared with former generations, according to an annual survey of teens by Piper Sandler released Wednesday.
Teens surveyed by the firm ranked racial equity as their most important political and social issue, followed by the environment and Black Lives Matter.
Among Target’s changes, the retailer said it will more actively seek out advertising firms, suppliers, construction companies and other kinds of businesses that are Black-owned. It said it will create a program called Forward Founders for early-stage start-ups led by Black entrepreneurs to help them develop, test and scale products to sell at mass retailers like Target.
TGT shares tacked on 18 cents to $205.59.
