Target Provides Update on Commitment to Spend $2 Billion with Black-owned Businesses and Announces New Media Fund Initiative

Rhea-AI Summary

Target (NYSE:TGT) provides an update on its Racial Equity Action and Change (REACH) commitment, aiming to invest over $2 billion with Black-owned businesses by 2025. Key milestones include:

• Investments with Black-owned businesses have increased by more than 50% since 2020.
• Target now offers over 100 Black-owned brands, doubling its previous count.
• Launching the Roundel Media Fund with over $25 million earmarked for diverse-owned companies.

Target continues to expand partnerships and enhance its marketing strategies aimed at supporting Black entrepreneurs and brands.

Positive

• Increased investment with Black-owned businesses by more than 50% since 2020.
• Now offers over 100 Black-owned brands, significantly increasing product variety.
• Introduction of the $25 million Roundel Media Fund to support diverse-owned brands.

Negative

• None.

• Retailer on track to meet goals established in 2021 to advance racial equity, including:
• Increased investments with Black-owned businesses by more than 50%
• More than double the number of Black-owned brands available at Target, now offering more than 100
• New Roundel Media Fund to provide more than $25 million to diverse-owned companies

MINNEAPOLIS, May 10, 2022 /PRNewswire/ -- Target® Corporation (NYSE:TGT) today shared an update on the progress it has made toward its Racial Equity Action and Change (REACH) commitment to invest more than $2 billion with Black-owned businesses by the end of 2025. The retailer also is introducing 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.

"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," said Christina Hennington, Target executive vice president and chief growth officer, and founding REACH committee member. "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. We will continue to ensure Black-owned businesses have a seat at the table so that all guests feel welcomed and represented when they shop at Target – and we'll bring transparency to the progress we're making to create lasting change for retail and beyond."

	Goals (by year-end 2025)	Progress Made
Total Investment	Invest more than $2 billion with Black-owned businesses	In 2021, increased investments by more than 50% compared to 2020
Black-owned Brands	Add products from more than 500 Black-owned brands	Currently offer more than 100 Black-owned brands
Forward Founders	Launch program to support Black-owned and diverse business owners	Launched Forward Founders accelerator program and completed two classes, supporting more than 30 Black entrepreneurs with additional classes planned
Marketing Media Budget	Invest 5% of annual media budget with Black-owned media by the end of 2022	Invested four times more with Black-owned media partners and doubled the amount of Black-owned partners since 2020
Roundel Media Fund	Award more than $25 million in media to diverse-owned and founded brands	Introduced the Roundel Media Fund, which has already offered grants to more than 50 recipients

Target's Investments with Black-owned Businesses

In 2021, Target pledged to invest $2 billion with Black-owned businesses by the end of 2025, including adding products across its multi-category assortment. Since then, the retailer has increased investments with Black-owned brands, companies and suppliers by more than 50% compared to 2020 and more than doubled Black-owned brand product offerings, with representation across every major product category.

Target now offers more than 100 Black-owned brands for guests to shop –from beauty products, home goods, books and toys to apparel, accessories and food and beverage items. The company's industry-leading beauty assortment saw a 65% increase in Black-owned brand offerings since 2020, more than 200 books from Black authors were added over the last year, and its food and beverage assortment will include 50 Black-owned brands by the end of 2022.

Target has also expanded collaborations with Black designers within its owned brand work and engaged Black creators to launch an exclusive home collaboration with Justina Blakeney, Opalhouse designed with Jungalow, as well as limited-time-only collaborations with partners Christian Robinson and Hilton Carter. 

In addition to adding more Black-owned brands, Target pledged to engage more Black-owned companies to enhance its retail operations and shopping experience. In 2021, the retailer increased investments with Black-owned brands, companies and suppliers – including marketing agencies, construction companies, facilities maintenance and more, by more than 50% compared to 2020. Notable examples include multi-million-dollar contracts with global technology service provider World Wide Technology and Taylor Brothers Construction, a vendor supporting the company's 2022 remodel program. Target also launched a new partnership with Bridgeforth Farms earlier this year to bring their sustainably grown cotton into the making of select products. 

New Roundel Media Fund Boosts Storytelling for Diverse Brands

New today, Target is introducing a funding program from its in-house media company, Roundel, to increase exposure of diverse-owned brands through paid media. Designed to offset the cost of marketing programs at Target for Black, Indigenous, and people of color (BIPOC) brands, the Roundel Media Fund will award more than $25 million in media to diverse-owned and founded brands by the end of 2025. Interested BIPOC vendors can apply to the fund by completing this application.

"We're proud to build on the work we've done to invest in the growth of BIPOC-owned businesses, showing up in ways that inspire and add value to the way our guests learn about our products and shop at Target," said Sarah Travis, president of Roundel, Target. "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. 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."

Additionally, since pledging to spend 5% of its annual media budget with Black-owned media by the end of 2022, the company has since invested four times more with Black-owned media partners and doubled the amount of partners they are working with since 2020, including notable multiyear deals with REVOLT, ESSENCE and Black Love.

Investing in the Future: Forward Founders

Target recognized the need to further support historically underrepresented founders and launched Forward Founders in 2021, an accelerator program designed to help Black-owned and diverse businesses increase their potential to be the next wave of wealth-building companies. This program was developed to engage diverse early-stage companies looking to better understand retail by helping them navigate critical stages, including ideation, product development and scaling for mass retail. Participating founders receive access to mentorship, workshops and curriculum to help promote their companies' growth without requiring an equity stake and preserving ownership and control over their business.

Based on the high degree of interest, Target tripled the size of the inaugural class and created a free, virtual program so thousands of applicants could benefit from the programming. Since launching, Forward Founders has supported more than 30 Black entrepreneurs and a total of 60 diverse founders through two classes, with more planned for the future.

Jasmin Foster of Be Rooted, an inclusively designed stationery brand, was a part of the inaugural Forward Founders class. After completing the program, Be Rooted can now be found at Target. "Forward Founders was an amazing experience and helped me further realize my long-term goals for Be Rooted and empower even more young girls and women of color through seeing themselves represented in the stationery category. As a solo founder, the early-stage support, mentorship and insight the program offered was invaluable in bringing my vision of Be Rooted to the next level," said Foster. "Being the first Black-owned stationery brand available at Target is a huge accomplishment and I believe my example will open up the doors for so many other Black-owned brands to do the same."

Miscellaneous

Statements in this release regarding Target's goals to advance racial equity, expected progress in meeting those goals, future investments and other activities supporting those goals, and the expected results of those investments, activities, and goals are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause Target's actions to differ materially. The most important risks and uncertainties are described in Item 1A of Target's Form 10-K for the fiscal year ended Jan. 29, 2022. Forward-looking statements speak only as of the date they are made, and Target does not undertake any obligation to update any forward-looking statement.

About Target

Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website and press center and by following @TargetNews. 

 

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SOURCE Target Corporation

FAQ

What is Target's commitment to Black-owned businesses?

Target aims to invest over $2 billion with Black-owned businesses by 2025 as part of its REACH initiative.

How much has Target increased its investments in Black-owned businesses?

Target has increased its investments with Black-owned businesses by more than 50% since 2020.

What is the Roundel Media Fund?

The Roundel Media Fund is a new initiative by Target to allocate over $25 million in media support for diverse-owned companies.

How many Black-owned brands does Target now offer?

Target currently offers more than 100 Black-owned brands across various product categories.