Why Retail Boycotts Will Hurt, More Than Help, Black Brands
It is disheartening to see how DEI pullbacks have driven conflict between Black brands and the communities they serve.
In today’s political climate corporations are increasingly emboldened to abandon diversity, equity, and inclusion (“DEI”) initiatives. Conservative activists are using the courts, social media, and other channels to put pressure on the promises made following the murder of George Floyd. Among the largest names rolling back on DEI are Meta, Amazon, McDonald’s, Target, Walmart, and…too many more.
Frustrated consumers and activists are advocating for retailer boycotts--to take our dollars, namely Black dollars, elsewhere. The backlash against Target has been most prominent in my social media algorithms. Some consumers have criticized Black-owned brands for staying on Target shelves considering the DEI news. Unfortunately, a mass exodus of Black brands from Target would likely hurt more than help the brands we know and love.
As a quick reminder, Target made the below commitments in 2021/2022:
The company has cited they are on track to reach the $2 billion commitment by the end of this year. By then the DEI programs will cease to exist. As a consumer, I am personally devastated by this rollback, but I am even more concerned about the potential economic impact of a Target boycott on Black-owned brands.
Target is one of the top retailers in the U.S. Some quick facts:
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Selling at Target is the crux of meeting consumers where they are. For many brands, Target is their #1 distribution channel and the best fit from a customer profile perspective (Target shoppers are mid- to high-income). Placement in-store can be a powerful driver of brand awareness and revenue generation in other channels.
For brands like?Honey Pot, Lip Bar,?Happy Hues,?Ghetto Gastro, and HUNDREDS of others leaving Target requires consumers to purchase their favorite products across multiple company websites (because they can’t go to Walmart or Amazon either…). Consumers mean well, but this will likely just lead to a massive financial problem for companies. There will be revenue gaps nearly impossible to fill.
For the sake of clarity, I do NOT support what Target and these other corporations are doing and I believe in the power of collective action. History has shown us that community activism can successfully challenge injustice and oppression across social, political, and economic issues. As much as I want retailers to face the consequences of DEI rollbacks, I want my Black-owned brands to succeed more.
There’s another deep-rooted issue behind the criticism of founders who are not leaving Target. For Black founders, it is challenging enough to build and scale a business, let alone get into one of the top U.S. retailers. Invisible hurdles are everywhere. Without major retail distribution, it’s extremely challenging to reach a scale where entrepreneurs can either (1) sell/exit their business or (2) grow to steady-state profitability, generating enough cash to return capital to investors. At a certain point, founders deserve to benefit financially from the tangible and intangible investments they’ve made in their businesses. These exits are how we create?generational?Black wealth. I so badly wish there was more education around this.
I respect everyone’s choice when it comes to the Target boycott. I just hope to share more context on why some brands can’t leave the shelves AND live to fight another day. We need our Black brands to survive!
Strategic Advisor, Board Member, and Startup Advocate helping impact-driven founders launch, scale, and exit with integrity
3 周Thank you for your perspective on this! ???? Consumers have shared so many valid points but it can be difficult to ignore the flaws in the “solutions” being floated around — DTC isn’t a viable alternative to Target distribution; inventory buyback would be financially catastrophic; etc. I hope for more nuanced discussions like this that bridge the knowledge gap so we can find the better path forward on behalf of both Black owned brands and the consumers they serve. Would love to hear any future thoughts you have as these DEI rollbacks take shape.