Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
In the shadow of ongoing protests against systemic racism, retailers have publicly grappled with discrimination in their workplaces. As brands from Adidas to Everlane reevaluate hiring procedures and issue apologies, some are also pledging to make changes where customers can see them: on their shelves.
The product angle
Sephora became the first mass retailer to sign the 15 Percent Pledge. It’s a recent initiative, led by Brother Vellies founder Aurora James, asking retailers to devote at least 15% of shelf space to products from black-owned businesses.
By the numbers...Sephora currently sells items from ~290 brands in the U.S., but only nine are black-owned. That’s 3.1% of its current assortment.
To boost that number, Sephora's in-house startup accelerator for female founders will now focus on women of color, and the company will work with VC partners to seek out more black-owned brands.
Anyone else? Rent the Runway also committed to the 15 Percent Pledge, but calls for Target, Whole Foods, and Shopbop to join have so far gone unanswered.
The display angle
At a dozen of Walmart’s 4,700 U.S. stores, beauty products commonly sold to black customers are locked behind glass cases. But Walmart said Wednesday it’s ending the practice.
- Customers have argued securing “multicultural” beauty products in cases is a form of racial discrimination.
- A federal discrimination lawsuit against Walmart claimed that locking away beauty products intended for black people suggests they’re more likely to shoplift. The plaintiff dropped the case last year.
Some CVS and Walgreens stores also keep beauty products under lock and key, but Walmart’s decision could prompt them to stop.
Zoom out: Across retail, what many consider discriminatory displays and scant support for black-owned businesses can alienate shoppers. Keeping up those practices is a mistake.
- In the U.S., black customers have $1.3 trillion in purchasing power, and their spending outpaces overall spending nationally, per Nielsen.
And according to a recent Morning Consult study, brands that take a stand on civil rights and political issues are viewed more favorably by shoppers overall.