BLACK HISTORY MONTH: Retail Report Card

BLACK HISTORY MONTH: Retail Report Card

Black History Month has increasingly become commercialized as many retailers have been working to diversify their supplier base while developing products and capsule collections for the month of February. It is important to review the approach participating retailers took this year, particularly on the heels of some turbulent national events as there are some stand-out best practices.

To start, below is a general 'report card' of those who participated with notable vignettes and products. Note that this is based on comps of select stores in the NY Metro area.

?Target Highlights

This year's collection featured designs from winners of a design competition selected from HBCU's (Historically Black Colleges and Universities). The capsule collection was found at the front of the store in the prominent corner aisle position.

Along with providing this platform for designers, Target has pledged to spend more than $2B with Black-owned businesses by 2025, increase the # of products carried by +500 across stores and online, and invest $10M toward social justice causes such as the National Urban League and the African American Leadership Forum.

Also, it requires mentioning that aside from Black History Month, Target launched a collaboration between private brand Opalhouse and designer Justina Blakeney, as well as previously a kids collection with children's' book illustrator and author Christian Robinson.

Nordstrom Highlights

Nordstrom took a very localized approach to its celebration of Black History Month. Rather than just one endcap with signage, collateral was present throughout the store. In the main presentation, local artisans and vendors created a pop-up marketplace setting. Vendors were able to sell direct to customers outside of the Nordstrom system. This provided a platform to connect with Nordstrom clientele. Meanwhile, Black-owned brands were also highlighted online.

Kohl's Highlights

Kohl's highlighted designs from their 'Diversity Design Council' centered around the theme of 'Black History, Black Future'. The most unique element was an assortment of Diversity & Inclusion children's books. These were developed within the retailers year-round Kohl's Cares program. 100% of the sale of net profits from that offering are donated to community programs nationwide. Additionally, Kohl's donated an incremental $100K to the National Urban League.

William Sonoma Inc Highlights

William Sonoma Inc collaborated with the NAACAP (National Association for the Advancement of Colored People) to create a limited edition collection. Items from this collection featured a signature tonal rainbow logo. 50% of the purchase price of those products was then donated to the NAACAP. Sister companies William Sonoma Home, West Elm, and Pottery Barn participated in the same program. Further, William Sonoma is also a participant of the Fifteen Percent Pledge.

JCP Highlights

Hope & Wonder is the brand created for JCPenney's capsule collection. Visuals in-store simply call out that the designers for this capsule collection are BIPOC (Black and Indigenous People of Color) for their design team however, upon further research I discovered there was a cause marketing component. 100% of the net profits from the collection were donated to 'Black Girls Smile' which is a non-profit that provides education and mental health resources to young black women. There certainly could have been stronger callout in-store to communicate these efforts.

Amazon Highlights

Rather than collaborating on private brand merchandise, Amazon's campaign focused on elevating existing independent Black businesses through its marketplace structure. This promotion included video content telling stories of entrepreneurs centered around the #BlackIsRemarkable.

The 'Buy Black' storefronts also provided insights into cause efforts and programs Amazon has developed in an effort to support development of these entrepreneurial businesses, such as a Black Business Accelerator program.

Macy's Highlights **Only online found

Walmart Highlights **Only found online

I will also give an honorable mention that WM and Sam's Club are currently marketing an open call to diversify its vendor base for future, however, there was no notable messaging or product found in-store aside from the Crayola skin color crayon packs which are still carried from last year but in a scaled down footprint.

Additional Highlights

In addition to the above initiatives, several retailers have joined the 'Fifteen Percent Pledge' (https://15percentpledge.org/pledged) which is a commitment to diversifying their branded assortment by dedicating a minimum of 15% of shelf space to Black-owned brands. There are currently 28 companies that have pledged including Macy's, Nordstrom, West Elm, Hudson's Bay, Bloomingdale's, Sephora, Gap, and more. It is worth noting that Sephora is within Kohl's and JCPenney locations and Gap has a collab with Walmart. Perhaps these committed retailers will be a trojan horse for further change.

Aside from the product sales and plea for social capital, the important focus needs to continue to be on development of DEI (Diversity Equity and Inclusion) programs. This includes elevation of minorities and ensuring diversity within organizations. Until everyone is fairly represented with a 'seat at the table' these initiatives will likely not be fully informed.

If you'd like more details or additional images from the study, don't hesitate to reach out.

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