Following the path of US companies like Walmart, Tractor Supply Co and Amazon, Target Corporation recently announced it would be pulling back on its diversity, equity and inclusion (DEI) initiatives. This move disappointed many consumers and brand founders, especially at Black-owned brands that these big-box retailers had added in recent years. As a response to Target’s decision, some Black-owned brands, such as New York City-based culinary company Ghetto Gastro, have announced that they
t they are cutting business ties with the brand entirely and have already begun removing stock from Target’s site and physical shelves.
Other Black brand founders, such as actress and social media personality Tabitha Brown, have stated that they will continue working with Target while expressing disappointment about the retail industry’s widespread pullback on DEI initiatives.
Why some Black brand founders can’t simply ditch Target
In reaction to Target’s actions, many critics, including Minneapolis-based civil rights attorney Nekima Levy Armstrong, called for a nationwide boycott of the store chain, to begin on the first day of Black History Month – February 1.
But while Target’s drawback on DEI was a major emotional blow to Black brand founders, many of whom were added to the retailer’s roster following the Black Lives Matter movements of 2020, several retail executives have stated that boycotting Target will ultimately hurt Black founders and their teams the most.
In a LinkedIn post, Beatrice Dixon, the co-founder and CEO of feminine care brand The Honey Pot, commented, “Our path to getting into Target was one of grit, sacrifice and resilience that many small brands can relate to…So many brands have spent years pitching Target and are finally getting their shot.”
Dixon pointed out there is a public misconception that all brands with founders that can add diversity got in through DEI programs.
“The truth is, most of us got in the old-fashioned way – pitching over and over until we finally got the opportunity,” she added. “Imagine working at this for a year or more, only for a boycott to launch just as you’re about to hit shelves. It could mean that all that blood, sweat and tears was for nothing.”
Dixon explained that while it may seem that she, or other Black brand founders, are defending Target’s actions, that is not the case.
“I’m advocating for the small businesses that depend on this opportunity,” Dixon emphasized. “Selling online isn’t always a safety net.”
The Honey Pot CEO noted that for brands with products under US$20, e-commerce expenses are much higher due to shipping, marketing, fulfillment and labor requirements.
Where a brand’s website is just one channel for shopping, mass retail opens many more doors and “that access makes a difference and sets you [the brand founder] up to grow into other retailers”.
She also pointed out that brands often must partner with a big-box player like Target or Walmart before any other retailers will take a shot.
“I’m not telling you [the consumer] how to spend your money, but I am pleading for these brands because this [struggle] is real…Please don’t let brands pay the price for a decision beyond their control,” Dixon heeded.
In an Instagram post, Brown, who has partnered with Target since 2022 and has launched multiple collections with the retailer, including swimwear, home goods, hair care, cookware, and food products, made very similar remarks.
She stated, “So many of us [diverse brand founders] would be affected. Our sales would drop and our businesses would be hurt. And if any of you know business, it doesn’t just happen overnight, where you can just go take all your stuff and pull it off the shelves. There’s a process [to finding alternative avenues to sell product].”
Emphasizing her primary concern, Brown added, “The thing that concerns me the most – and I want you to hear me and hear me well – is if we all stop supporting businesses that were affected by the DEI ban and say, ‘I can’t buy anything from there,’ what that does is you take all of our sales and they dwindle down.”
Why some Black brand founders are cutting ties with Target
Bethany J Peak of Sainte Nèl, a plant-based nailcare and wellness brand, told Inside Retail, “Last year, we launched our overnight cuticle serum on Target.com. We were hopeful that it would be the first step in our expansion into larger retailers and planned to add more products over the coming years.”
But Peak decided to remove Sainte Nèl products from Target’s website in response to Target’s recent announcement that it would be ending its DEI programs.
The brand founder explained, “Target made a number of commitments to the Black community in 2020. At the time, they made it seem as if it was a sincere effort to use their massive wealth and platform to benefit the Black community, but it’s clear now that it was a publicity stunt. This is not the first time a large corporation has used the Black community as a marketing ploy, but we at Sainte Nèl do not want our brand to be associated with that.”
While Sainte Nèl is not a large business, Peak stated that she feels that the brand has an obligation to “our community to live true to our values”.
As the brand’s products are being removed from the big-box retailer’s e-commerce channel, Peak stated that she plans to work on Saint Nèl’s expansion by working with “small, locally owned retailers that align with the values we want to see in society”.
“Will Sainte Nèl leaving Target.com make a huge difference to Target?,” Peak asked.
“No, but it will send a message to the people in our community that Sainte Nèl stands for inclusion, equity and celebrating diversity. And we hope it will encourage others to do the same.”
How consumers should respond to Target’s drawback on DEI initiatives
Melissa Butler, founder and CEO of The Lip Bar, a prominent Black-owned beauty brand carried in Target stores since 2018, expressed in an Instagram post that she was disappointed by the retailer’s action, but not surprised.
“I always thought the 2020 commitments were a farce, like anything that is forced is going to be a farce. I think part of it is because Trump is emboldening companies to reverse commitments that they never wanted to make in the first place.
“So the immediate risk is that if all of our consumers boycott Target, then that will absolutely impact us. I do want to make sure that we are aware that, you know, by not shopping in these stores, you are also impacting the hundreds of Black-owned businesses and women-owned businesses.”
Butler suggested that instead of missing Black-owned brands that work with retailers like Target or Walmart entirely, consumers could find alternative ways to support these brands, such as by shopping directly on the brand’s website.
This is exactly what Maurielle Lue, a news anchor for Fox television stations and a personal fan of The Lip Bar’s products, promised to do.
Under Butler’s Instagram post, Lue commented, “Great perspective…I will now be shopping on your site, as I fully support a boycott of Target and Walmart.”