Additional Coverage:
- As retailers drop DEI programs, Black founders could face obstacles to staying on shelves (nbcnews.com)
Local fragrance brand Brown Girl Jane has found success with major retailers like Sephora, landing its perfume bottles on shelves alongside luxury giants like Prada and Dior. CEO Malaika Jones credits Sephora’s support, including a $100,000 grant and promotional emails, for helping the Black-owned company compete against established brands with larger marketing budgets. Brown Girl Jane’s sales have more than doubled since Sephora began carrying its products.
This success story highlights a growing concern: major retailers like Walmart and Target are scaling back diversity initiatives. Jones worries this trend will make it harder for small, diverse brands to gain visibility and thrive.
Many retailers launched supplier diversity programs after George Floyd’s murder, but some are now abandoning those commitments. Target, for instance, dropped its pledge to add products from hundreds of Black-owned brands and spend billions with Black-owned businesses. Walmart also ended key initiatives, including its Center for Racial Equity.
This retreat comes amidst broader backlash against diversity, equity, and inclusion (DEI) programs. Several corporations have rolled back DEI efforts due to political pressure and lawsuits, like the one against The Fearless Fund, a venture capital fund supporting Black women founders. The fund was forced to shut down its grant program after a lawsuit alleging discrimination.
Some retailers, however, remain committed to DEI. Sephora, Costco, and E.l.f.
Beauty are among those continuing these efforts. Sephora’s CEO, Artemis Patrick, says the retailer’s focus on diversifying its assortment correlates with strong business performance.
Costco shareholders overwhelmingly rejected a proposal to assess the risk of DEI initiatives. E.l.f.
Beauty’s CEO also touts diversity as a key competitive advantage.
The 15 Percent Pledge, an initiative urging retailers to dedicate 15% of shelf space to Black-owned brands, continues to have prominent supporters, including Sephora, Macy’s, and Nordstrom. The Pledge’s founder, Aurora James, expressed disappointment in companies abandoning DEI, emphasizing the importance of supporting small businesses and diverse founders.
While Walmart and Target maintain they will continue carrying Black-owned brands, some founders are wary. Tabitha Brown, who has product lines at Target, encourages shoppers to support Black-owned brands directly, but acknowledges the risk of these brands losing shelf space if sales decline. Handbag designer Brandon Blackwood credits major retailers for helping his brand gain recognition and worries that scaling back diversity efforts will limit opportunities for emerging designers.
For Brown Girl Jane, Sephora’s partnership has been crucial for growth. Jones says the company’s annual revenue is now in the millions, and Sephora is its largest wholesale partner.
She emphasizes that customers of all races are drawn to diverse brands. Jones believes that retreating from DEI sends a negative message and risks overlooking promising brands.