‘Our Businesses Might Not Survive’

Black-owned businesses say they don’t want consumers to boycott Target.

Good Morning!

Here are today’s highlights:

• There’s something else you can do with vacant office space: grow kale.

• Victor Hwang reports that remote work has spurred entrepreneurship.

• Could the Trump tariffs encourage production of footwear in the U.S.? (Probably not.)

• Charles Phan elevated food made by immigrants, built the highest grossing independently owned restaurant in California, and tried to break the cycle of abusive chefs.

THE DEI BACKLASH

Black-owned brands that Target used to promote don’t want to see Target boycotted: What began as a grassroots effort — selling at markets and salons — eventually did catch the attention of a Target buyer scrolling [Chantel Powell’s] website. In March 2022, Play Pits landed on shelves in 296 Target stores, an unprecedented feat for a Black-woman-owned business of its size. ‘My competition is Unilever, Procter & Gamble — big conglomerates,’ Powell told The Washington Post. ‘To see my product in Target stores was a milestone.’”

• “Last week, Target announced plans to scale back its diversity, equity and inclusion initiatives, including its three-year racial equity goals aimed at improving opportunities for Black-owned businesses and suppliers. The retailer, which once championed programs to diversify its shelves, has joined a growing list of corporate giants — Meta, Walmart, McDonald’s — that are retreating from DEI commitments.”

• “Through Target’s DEI programs, the retailer offered better shelf placement, discounted promotional opportunities and faster payouts — crucial benefits in an industry where companies must front the cost of inventory before seeing a dime. ‘Big-box retailers are a predictable revenue stream,’ Powell said. ‘Online, I might make $2,000 one day and $200 the next. But with Target, I have a consistent flow of income. It’s also a convenient opportunity for my customers to shop my products. For moms, convenience is key.’”

• “The backlash was immediate and visceral. Social media lit up with calls to boycott Target, with Black consumers leading the charge. Yet Powell and other Black owners of brands featured in Target stores are urging customers to ‘clear the shelves’ and keep buying their products at Target. A boycott, they warn, could jeopardize their livelihoods. ‘If our core customer base stops supporting us at Target,’ Powell said, ‘our businesses might not survive.’”

• “Powell fears the ripple effects of Target’s decision to scale back DEI programs will devastate her 15 employees, most of whom are mothers. ‘It’s frustrating. Corporations jumped on the bandwagon to support Black businesses when it was trendy. Now that it’s easier to discard us, that’s what they’re doing,’ she said.” READ MORE