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Boycott would hurt minority businesses, founders say

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Brands fear loss of exposure on Target ( TGT ) shelves

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'Break in trust' with consumers, analyst says

By Arriana McLymore and Siddharth Cavale

NEW YORK, Jan 27 (Reuters) - Please don't boycott Target ( TGT )

: That's the message from Black founders and influencers

to consumers about a blacklash against the retailer's decision

to end its diversity, equity and inclusion efforts.

With the U.S. political climate trending right, the

Minneapolis-based company announced the move on Friday prompting

calls for a boycott of its stores from labor advocacy group We

Are Somebody and a Minneapolis city council member.

The campaign would be aimed at hurting the company's sales

and preventing Target ( TGT ) from profiting from products by

minority-owned companies, advocates said.

But Black-owned companies and entrepreneurs urged against a

boycott on Monday, saying they would lose revenue and consumer

exposure, which would harm the brands more than the retailer.

"If we all decide to boycott ... so many of us will be

affected and our sales will drop --- our businesses will be

hurt," Tabitha Brown, an actress whose kitchenwares are sold at

Target ( TGT ), said in an Instagram post.

Target ( TGT ) did not immediately respond to requests for comment.

Building on previous inclusivity efforts, Target ( TGT ) in 2022 set

a goal of making a financial commitment of more than $2 billion

to Black-owned businesses by 2025 and to have more than 500

Black-owned brands in its stores. The company has said it was on

track to meet its goals.

Consumers who want to boycott Target ( TGT ) should instead spend

their dollars on products from Black-owned businesses at the

retailer, said April Showers, founder and chief executive of

toy, apparel and home goods brand Afro Unicorn, which has been

sold at Target ( TGT ) since 2022.

"Target ( TGT ) is about money," she said. "Target ( TGT ) is not going

to remove any of our products if they're performing well, so

we're saying be strategic with your dollar."

A boycott of Target ( TGT ) could also hurt the growth potential of

Black brands due to reduced visibility and geographic footprint

if their products start to be dropped from the chain's nearly

2,000 stores and on its website.

"If you don't buy our products in Target ( TGT ), they will cancel

us from their shelves and make us buy back the products they

already purchased from us," Black-owned doll brand Beautiful

Curly Me said on its Instagram account on Sunday.

Some backers of a Target ( TGT ) boycott call for buying directly

from Black-owned brands' websites instead. But many founders do

not want to miss out on the millions of shoppers who enter

Target's ( TGT ) stores every week.

"We have dolls on our websites, but having your dolls in

mass retail stores gives you a different kind of visibility to

millions and really helps us expand," Beautiful Curly Me said.

PRODUCTS ON WEBSITE

Target's ( TGT ) website on Monday highlighted Black-owned or

founded beauty and personal care brands ahead of Black History

Month, which begins Saturday. Such brands include actress Tracee

Ellis Ross' Pattern hair products and actress Gabrielle

Union-Wade's Proudly baby items.

DEI initiatives sought to address longstanding structural

racism and sexism by promoting opportunities for women, ethnic

minorities, LGBTQ people and other underrepresented groups.

Arising after the Black Lives Matter protests and George

Floyd's killing in 2020, Target's ( TGT ) moves were accompanied by

initiatives to help minority employees advance their careers,

diversify its suppliers and ensure stores were welcoming to

LGBTQ, Black, Asian, veteran and disabled shoppers.

At the time, many U.S. companies embraced the trend. But the

landscape has shifted including a Supreme Court decision against

affirmative action and the election of President Donald Trump,

who ordered the federal government to end its diversity

programs. Conservatives argue DEI is based on favoritism rather

than merit.

Walmart ( WMT ), Meta and McDonald's are

among the brands that have rolled back DEI policies recently.

But Target's ( TGT ) decision struck some of its critics as a

betrayal, saying the retailer's initiatives attracted a younger,

more diverse consumer base.

Tamala Barksdale, managing partner at brand consultancy 360

Agency, said Target's ( TGT ) move was "a break in trust" with its

customers who believed in its efforts.