Target’s DEI retreat puts Twin Cities Black businesses at risk
After George Floyd’s murder, Target’s high-profile DEI and supplier diversity pledges opened long-closed doors for Twin Cities Black entrepreneurs. Now, as the retailer steps back from those commitments, local Black-owned brands face stalled momentum, fragile gains and renewed questions about whether corporate racial equity promises were ever meant to last.
Twin Cities Black entrepreneurs who once benefitted from Target’s diversity, equity and inclusion commitments now face a shifting landscape.
When Target pledged billions toward racial equity and diverse supplier programs following George Floyd’s murder, Black-owned brands in Minnesota saw an opening that had long been closed. From expanded shelf space and mentorship to national distribution deals and marketing support, the Minneapolis-based retailer positioned itself as a corporate anchor in the push to build generational wealth in communities historically shut out of the retail economy.
But now, with Target retreating from DE&I goals, some local entrepreneurs say the momentum that once promised growth and stability has faded, raising questions about whether progress for Black-owned businesses was a long-term strategy or a temporary cultural moment.
Under Target’s REACH initiative, Black-owned brands experienced unprecedented opportunities: product placement in hundreds of stores, supply-chain contracts, increased staffing and revenue streams that depended not just on local sales, but national distribution. Analysts say the supplier-diversity commitment helped these businesses achieve national shelf access, distribution opportunities, and marketing support.
Among the beneficiaries were Minneapolis-based The Get Down Coffee Co. and Houston White’s lifestyle and grooming lines. While some of Houston White’s products remain available on Target’s website, The Get Down Coffee Co. has temporarily closed, posting a notice in its Camden Neighborhood location announcing plans to reopen in spring 2026.
The gains, though real in some ways — creating jobs, increasing manufacturing demand, fostering partnerships and circulating economic activity within predominantly Black corridors such as North Minneapolis and St. Paul’s Frogtown — appear to have been fragile. When Target wound down its three-year DE&I commitments, reduced diversity reporting, and repositioned its equity branding, some Black business partners say the pace of partnership opportunities slowed.
Access to a retailer like Target can reshape a company’s financial trajectory. National purchase orders allow entrepreneurs to hire staff, lease production space, buy raw materials in bulk, and access financing that requires predictable revenue streams.
When Black businesses lose these opportunities, the effects ripple outward: fewer jobs, fewer contracts for other local companies and slower wealth-building in the community. In Minnesota, where disparities already define business ownership and median household income, the retreat may widen gaps rather than close them.
Economic uncertainty also affects workers tied to Black-owned product lines. Production staff, packaging teams, delivery drivers, graphic designers, photographers, accountants and community-based marketing specialists all depend on contracts with national retailers. If those contracts shrink, layoffs and reduced hours can follow.
The ripple effects extend to community institutions that relied on corporate partnerships, sponsorships, and programs tied to DE&I commitments. Nonprofits that collaborated with Target on events, incubators, or vendor fairs report that these opportunities have become less consistent, with fewer dollars linked to racial-equity outcomes.
Target remains one of Minnesota’s largest employers and most visible corporate citizens. Analysts say the company’s retreat from equity initiatives places it at a crossroads: maintain an identity rooted in inclusion, or reposition as a neutral player in a polarized retail environment. Data shows that consumers, particularly Black and other inclusive-minded shoppers, expect brands to operate with values. Reducing diversity efforts risks eroding trust, brand loyalty and foot traffic, while triggering backlash or boycotts.
As the Twin Cities continue to confront racial inequity in business, housing, wealth, and access to capital, the role of major corporations in supporting, or stalling, progress remains pivotal. Target’s pullback may relieve political pressure, but for many Black-owned businesses, the cost is already visible.
For those that invested deeply in Target’s DE&I commitments, keeping that doorway open now feels precarious. Some local entrepreneurs, however, navigated these challenges differently.
A St. Paul beauty and cosmetics business owner said she had avoided aligning with Target to retain full control of her business and profits. Her doors remain open, illustrating that cautious strategies may sometimes shield businesses from sudden shifts in corporate priorities.
Scott Selmer welcomes reader responses at sselmer@spokesmam-recorder.com.
Skin color should not play any part in the success of selling high-quality products. If opportunities have arisen solely because of skin color, it is important to reconsider both the product itself and the marketing strategies in place. The focus should always remain on the quality and value that the product offers to customers.
This is an ideal time to invest in and develop quality “American Made” product lines. Building a reputation for dependable, locally made goods can foster trust and loyalty among consumers, ensuring long-term business success.
It is essential not to be discouraged by setbacks or challenges. Instead, continue to grow and learn from past business experiences. Adopting a positive attitude and remaining resilient will pave the way for future achievements. Stay motivated and maintain a forward-thinking mindset for lasting success! SENDING POSITIVE VIBES!