Retailers Embrace Black History Month as Consumer Demand for Diversity and Inclusion Increases

As the demand for action on diversity, equity and inclusion issues increases, retailers’ adoption of Black History Month has grown significantly in 2021—although until now, it has admittedly grown at a slow pace overall, considering it was officially recognized in the U.S. in 1976. This year, however, more retail brands are creating campaigns to elevate Black voices and businesses, and designing exclusive collections in partnership with Black creators. Although there is not enough data to quantify exactly how many more brands are participating in 2021, Alyssa Meyers, a reporter at intelligence company Morning Consult, said there is definitely an increase. This, she noted, could be related to Morning Consult’s finding that 38% of Americans are more likely to purchase from a company that financially supports causes that address social, diversity or inclusion issues. To this end, some retailers like Target—which is celebrating Black History Month for its sixth year—have made it a point to showcase how they support the Black community daily instead of during one particular season. Besides developing an exclusive collection of apparel and accessories, Target drew attention to its Black Beyond Measure campaign. This initiative, which was launched in 2020, showcases its expanded selection of year-round Black-owned and Black-founded business offerings. They [have to] change their products, their systems, their business processes in an attempt to battle discrimination.Dipanjan Chatterjee, principal analyst, Forrester Meanwhile, Old Navy collaborated with Afro Latina visual artist and educator Reyna Noriega to launch the first design of its ongoing Project WE series that features graphic tees designed by a diverse selection of artists. And Macy’s shared it will welcome 16 new Black-owned brands to its small business platform Story. Aligning with Black History Month, but not exclusive to February, Best Buy launched its “More of This” campaign. This initiative supports inclusion and diversity through technology by celebrating past and present moments in which access to technology played an important role. Even Etsy is celebrating Black History Month by gifting a $10 credit to customers who make a purchase of $35 or more from a featured Black-owned shop—and pay with Mastercard. Summer 2020 pledges These efforts follow protests against police brutality last summer and the brand commitments to racial justice that followed. For example, Old Navy pledged to double Black and Latinx employees’ representation at all levels in its U.S. HQ offices by 2025. And sister brand Gap promised to increase its empowerment programs, such as its internship, externship and apprenticeship training, by 15% to offer more opportunity for the Black community within Gap’s brand repertoire. For its part, Target announced a commitment of $10 million to fund ongoing resources that advance social justice and rebuild and recover local communities, while Best Buy shared a five-year plan that promises to make systemic, permanent changes to address social injustices. Infographic: Following Protests, Consumers Expect More From Brands This Black History Month In a similar vein, Etsy recently shared progress on its 2019 commitment to increase workforce diversity. The ecommerce platform had set a goal to approximately double the percentage of its Black and Latinx employees by 2023. Since then, it has doubled its Black and Latinx hires, increasing its Black, Indigenous and people of color (BIPOC) employees to 12.2% from 10.5% in 2019. In addition, many retailers, including Target, Gap, Sephora, Macy’s and West Elm, have taken the 15 Percent Pledge, which was created last summer by Aurora James, founder of sustainable accessories brand Brother Vellies. By making this pledge, retailers commit to giving a minimum of 15% of their shelf space to Black-owned businesses to correspond with the percentage of the U.S. population who identify as Black. As part of its pledge, Sephora also plans to revamp its five-year-old internal incubator program, Sephora Accelerate, to launch more women-owned beauty products—this time only including BIPOC-owned brands. The retailer already launched a new tab on its website to curate products from Black-owned brands. Hollow vs. meaningful Lindsey Roeschke, analyst at research firm Gartner, said brands’ efforts this year would be deemed hollow if they are using Black History Month as an opportunity to speak out but are not following up with action throughout the rest of the year. And unfortunately, “that is the case of many brands,” she said. Without minimizing the work of those companies truly committed to making a difference, Roeschke said there are still many approaching Black History Month through an outdated lens. Dipanjan Chatterjee, vp and principal analyst at Forrester, said this year’s actions are certainly better throughout and presented as more holistic than a simple promotion. In particular, he highlighted Target’s expanded selection of Black-owned products and Starbucks’ initiative to share its employees’ perspectives and stories. But as Chatterjee pointed out, participation in Black History Month alone “is not indicative of a serious and committed attempt to undo the injustices of the past or to reverse endemic systemic racism.” Instead, companies will have to deliver more than statements, donations and social media hashtags to dismantle our current systems. “They [have to] change their products, their systems, their business processes in an attempt to battle discrimination,” Chatterjee said. Indeed, beyond yearly campaigns, advocates are calling for commitments to hiring more diverse employees. Time will tell if these continued brand promises are actual efforts for systemic change or just more marketing ploys. One thing is certain: Consumers—especially younger ones—will continue to hold brands accountable and push their involvement in social justice. “Being a good corporate citizen is just part of being a company these days,” Roeschke said.