Beyond the Pledge: The Need for Sustained Commitments to Black Economic Empowerment

In the wake of the 2020 racial reckoning, major corporations, including Target, made bold commitments to increase Black representation in the workforce, support Black-owned businesses, and invest in racial equity initiatives. These pledges were more than just PR statements—they were seen as a step toward addressing systemic barriers and fostering long-term Black economic empowerment.

Fast forward to 2024, and the corporate landscape is shifting. As you may know, Target recently announced it was ending its commitment to increasing Black (diverse) workforce representation by 20% and dissolving its executive racial equity committee. Its “supplier diversity” team, focused initially on increasing Black and diverse suppliers, has been rebranded as a “supplier engagement” team with a broader, race-neutral approach. While Target maintains it is on track to meet its financial commitments to Black suppliers, the message is clear: the company is moving away from explicit DEI efforts in favor of a more generalized approach to inclusion—what it now calls “Belonging at the Bullseye.”

This shift does not exist in a vacuum. It comes at a time when DEI efforts are under direct attack at the highest levels of government. The newly issued executive order from the White House on January 20, 2025, explicitly calls for the termination of federal DEI programs, calling them “illegal and immoral discrimination programs.” The order mandates the removal of all DEI-related initiatives, policies, and offices across federal agencies and contractors, stating that “Americans deserve a government committed to serving every person with equal dignity and respect and to expending precious taxpayer resources only on making America great.”

This order sets a dangerous precedent by dismantling DEI programs at the federal level and discouraging corporate DEI initiatives. It signals to businesses that they can discreetly step back from their racial equity commitments without facing any consequences. This is not just a policy shift; it directly challenges the progress of advancing Black economic empowerment.

Black Consumer Power: A Trillion-Dollar Market

Despite attempts to sideline racial equity initiatives, the economic influence of Black consumers is undeniable. Our collective economic power is projected to expand dramatically—from $910 billion in 2019 to over $1.7 trillion by 2026. Black spending fuels every industry, from retail and fashion to automotive and financial services. Yet, despite this massive economic impact, Black consumers are still more likely than their non-black counterparts to live in consumer deserts—underserved across all areas of consumption.

Major retailers like Target benefit directly from Black consumer spending. Target alone earns nearly $1 trillion from Black consumers, yet it is backpedaling its DEI commitments. This contradiction reminds us that while corporate pledges may come and go, Black consumers' financial power remains steady.

As McKinsey’s Shelley Stewart III put it, “Catering to Black consumers can help brands better serve all customers, particularly as the country's demographics become more diverse. Developing a perspective on serving diverse customers is something that all companies need to consider.”

But what happens when companies decide they no longer need to cater to the very consumers who contribute to their bottom line?

This question exposes a fundamental contradiction in corporate America: while many companies have publicly committed to diversity, equity, and inclusion (DEI) initiatives, their actions often reflect a greater reliance on Black spending power than a genuine commitment to Black consumers.

The Power of the Black Dollar in America

Black consumers in the U.S. have a collective spending power of approximately $1.7 trillion, which is projected to continue rising significantly. To put this into perspective, if Black America were a country, its economy would be one of the 20 most prominent in the world.

Despite making up only 13.6% of the U.S. population, Black consumers wield enormous influence across multiple industries, particularly in the following sectors:

Beauty and Personal Care: Black consumers spend nearly $6.6 billion annually on beauty products, accounting for 11.1% of total U.S. beauty spending—yet Black-owned beauty brands receive less than 2.5% of industry revenue.
Footwear and Apparel: Black consumers spend $66 billion annually on apparel and footwear, with Nike, Adidas, and other major brands profiting immensely from Black culture and trends.
Automobiles: Black consumers spend nearly $129 billion on new and used vehicles yet remain underserved by significant car dealerships.
Media and Entertainment: Black Americans spend a higher percentage of their income on streaming services, gaming, and movie tickets than any other racial group, directly influencing trends in music, television, and pop culture.

Black Spending Power vs. Black Wealth

Despite this massive economic contribution, Black consumers remain the most underserved demographic. Black communities are disproportionately affected by "consumer deserts," areas where essential goods and services are difficult to access. This is particularly visible in industries like:

Retail and grocery stores: Large grocery chains and retailers have historically left Black neighborhoods, leaving communities with fewer fresh food and retail options.
Financial services: Despite their collective economic power, black consumers have less access to banking institutions and face higher loan interest rates.
Homeownership: Discriminatory lending practices continue to impact Black homeownership rates, limiting generational wealth accumulation.

Corporate America’s Reliance on Black Spending Without Respect for Black Consumers

Major companies have profited immensely from Black consumer spending while offering minimal reinvestment in Black communities. This is evident in multiple ways:

Black Representation in Corporate Leadership Remains Low
Minimal Investment in Black-Owned Businesses
Performative DEI Commitments

What Happens When Black Consumers Redirect Their Dollars?

Given this reality, Black consumers must begin strategically leveraging their economic power. If corporations will not respect Black consumers while benefiting from Black spending, it is time to invest in Black-owned spaces and prioritize reinvesting in our communities.

The Future: Building and Supporting Black-Owned Spaces

Instead of continuing to pour billions into companies that fail to respect Black consumers, there is a growing movement to redirect Black spending toward Black-owned businesses and self-sustaining economic ecosystems. Some successful models include:

We Buy Black: A thriving online marketplace explicitly designed for Black-owned businesses, giving consumers direct access to Black brands.
Official Black Wall Street: A digital platform that helps consumers find and support Black-owned businesses across multiple industries.
The Village Market ATL is a physical and digital retail hub providing Black entrepreneurs with storefront opportunities and business growth support.
Black & Mobile: A Black-owned food delivery service that partners exclusively with Black-owned restaurants, creating an independent alternative to Uber Eats and DoorDash.

By shifting spending habits and demanding respect from corporations that rely on Black dollars, Black consumers can actively reshape the economic landscape and ensure that their financial contributions translate into real power.

SGJ Legacy’s Commitment to Black Empowerment

While some corporations and institutions retreat from their commitments, SGJ Legacy remains steadfast in its mission to amplify the importance of Black economic empowerment and racial equity. Founded in honor of Sam Greenlee, SGJ Legacy continues his legacy of challenging the status quo, informing, and empowering Black communities through media and education.

This commitment is at the core of our work, including our ongoing efforts to elevate The Spook Who Sat by the Door. The novel and film adaptation is a powerful commentary on systemic inequities, self-determination, and the necessity of strategic empowerment. At its heart, The Spook Who Sat by the Door is about agency—ensuring that Black communities have the knowledge, resources, and strategies to navigate and challenge structures that limit access and opportunity.

By continuing to showcase and promote this landmark work, SGJ Legacy is doing more than preserving history— we are reinforcing its urgency in today’s context. The conversations sparked by The Spook Who Sat by the Door resonate now more than ever as corporate and governmental forces attempt to dilute or eliminate racial equity efforts.

What’s Next?

For Black consumers and business owners, this moment calls for both vigilance and strategic action:

Continue supporting Black-owned businesses. Black consumer power is massive, and we must ensure it directly benefits Black communities.
Hold corporations accountable. If companies profit from Black spending, they should reinvest in Black communities. Call out performative commitments and demand measurable, sustained action.
Demand that distributors respect Black businesses. It’s not enough for Black entrepreneurs to create—companies must ensure that Black-owned businesses receive fair representation, contracts, and shelf space.
Create More'Black-Owned' Spaces. It is time to establish independent markets, online platforms, and community spaces where Black entrepreneurs can sell goods and services outside major corporations’ flimsy DEI pledges. The future of Black economic empowerment must not depend on retailers and distributors that continually backpedal on diversity commitments.
Educate and Empower. SGJ Legacy is committed to keeping this conversation at the forefront. Through our programming, screenings, and educational initiatives, we will continue highlighting the ongoing struggle for economic and racial justice.

The lessons of The Spook Who Sat by the Door remind us that we cannot afford to be passive observers. As we navigate this shifting landscape, we must remain steadfast in our demand for equity, economic power, and justice.

Now is not the time for retreat—it is time for recommitment.

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Sources

McKinsey & Company. Black consumers: Where to invest for equity. McKinsey & Company, 2024. https://www.mckinsey.com
Brookings Institution. Black households and the racial wealth gap. Brookings, 2024. https://www.brookings.edu
Nielsen. Diverse Intelligence Series: The Power of the Black Consumer. Nielsen, 2024. https://www.nielsen.com
Forbes. Corporate America’s DEI Retreat: What It Means for Black Consumers. Forbes, 2024. https://www.forbes.com
Fortune. The State of Black-Owned Businesses in 2024. Fortune, 2024. https://www.fortune.com
Blavity. How Black Spending Shapes the Economy. Blavity, 2024. https://www.blavity.com
Pew Research Center. Racial Disparities in Economic Mobility. Pew Research, 2024. https://www.pewresearch.org
Statista. Black Consumer Market in the U.S. Statista, 2024. https://www.statista.com
CNN Business. The Backlash Against Corporate DEI Initiatives. CNN, 2024. https://www.cnn.com
Washington Post. Why Corporations Are Scaling Back Their DEI Commitments. Washington Post, 2024. https://www.washingtonpost.com