In an impressive display of solidarity and commitment to inclusivity, major retailers have channeled a remarkable $14 billion in revenue to Black-owned businesses since May 2020. Spearheaded by the pioneering initiative of the Fifteen Percent Pledge, this collaboration between influential retailers and nonprofit organizations has ushered in a transformative era for Black entrepreneurs.
Economic Empowerment and Inclusivity Unleashed
In the past three years, a cohort of prominent names including Nordstrom, Macy’s, Sephora, and Ulta Beauty, along with 25 other industry giants, have joined forces with the Fifteen Percent Pledge. The core principle behind this initiative is simple yet profound – dedicating 15% of their shelf space to Black-owned brands, mirroring the demographic composition of the United States.
The pledge has been a catalyst for change, propelling retailers to significantly increase their support for Black-owned brands. Before embracing the commitment, many of these partners allocated less than 3% of their shelf space to such brands. Now, armed with a 10-year contract, they are steadfastly working to fulfill their 15% promise.
Fifteen Percent Pledge: Forging a Path to Generational Wealth
LaToya Williams Belfort, the Executive Director of the Fifteen Percent Pledge, envisions a future characterized by inclusivity and generational wealth creation. She asserts, “Let’s create an opportunity to chart a path forward that’s more inclusive and gives Black entrepreneurs who have been historically and systemically excluded an opportunity to build generational wealth.”
The pledge’s audacious goal is to drive a staggering $1.4 trillion in wealth generation for Black entrepreneurs by the year 2030, sparking a transformative impact on economic disparities and opportunities.
A Resounding Call to Action
The roots of this movement trace back to the impassioned plea of Aurora James, a Brooklyn-based entrepreneur. In the wake of George Floyd’s tragic murder, James implored multibillion-dollar retailers to seize the opportunity to effect positive change. Her call to dedicate 15% of shelf space to Black-owned brands gained unprecedented momentum, with Sephora becoming the first major retailer to heed the call.
James eloquently underscored the symbiotic relationship between businesses and the Black community: “So many of your businesses are built on Black spending power. So many of your stores are set up in Black communities. So many of your posts seen on Black feeds. This is the least you can do for us.”
From Vision to Reality: Transforming Lives and Brands
The Fifteen Percent Pledge has nurtured a network of over 625 Black-owned businesses and brands, fostering meaningful partnerships with corporate giants that share its vision. One notable success story is that of Christina Tegbe, founder of the Black beauty brand 54 Thrones. Tegbe’s collaboration with the pledge has led to a remarkable growth trajectory for her business.
In Tegbe’s words, “From 2016 to 2019 we had a cumulative four-figures in sales. After May 2020 and with the work being done by the Fifteen Percent Pledge, we saw ourselves having five-figure days.” The exposure garnered through the initiative has catapulted 54 Thrones onto the shelves of prestigious retailers like Sephora, Nordstrom, Credo Beauty, and Goop, founded by Gwyneth Paltrow.
A Catalyst for Meaningful Change
The impact of the pledge is resoundingly evident in the numbers. In August 2022, Nordstrom introduced its pioneering Black Business Month program, featuring a “Buy Black” pop-up market that showcased Black-owned and founded brands. This initiative garnered astounding support, resulting in $14 million in sales for Black-owned brands in a single month.
Buoyed by this success, Nordstrom is poised to launch a new multi-city initiative to further bolster Black-owned brands. Their goal aligns with a commitment to achieve $500 million in retail sales from brands owned, operated, or designed by Black and Latinx individuals by 2025.
As LaToya Williams Belfort succinctly puts it, “We really want companies that have a large economic footprint that want to be more inclusive, and create a more inclusive society going forward.” With $14 billion already making its mark, the path to economic equality and shared prosperity continues to unfold.
