Black people make up 15% of the U.S. population. So why shouldn’t businesses dedicate 15% of their shelf space to Black-owned brands? That’s the idea behind the nonprofit organization Fifteen Percent Pledge and it is making a difference, pumping $14 billion in revenue back to Black-owned businesses since May 2020.
As Black History Month kicks off, it is important to recognize movements such as The Fifteen Percent Pledge, which started small but has grown to include more than 28 retailers, including some of the top publicly traded companies in the world.
Prior to taking the pledge, many of the group’s current partners had less than 3% of their shelf space dedicated to Black-owned brands, according to CNBC. Now all partners are committed to attaining their 15% pledge over a 10-year contract.
“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,” said LaToya Williams Belfort, executive director of the Fifteen Percent Pledge in an interview with CNBC.
The Fifteen Percent Pledge is a call to action for major retailers and corporations to help create sustainable and supportive ecosystems for Black-owned businesses to succeed. But it goes beyond numbers. The Fifteen Percent Pledge works with companies to comprehensively re-evaluate their organizational structures, ways of working, funding, and sourcing to implement meaningful change and create greater equity for Black businesses.
The companies supporting the Fifteen Percent Pledge include both private firms and publicly traded companies, giving retail shareholders plenty of opportunities to invest in those businesses that support the cause.
In May 2020, amid a charged moment in history full of protest and awakening, The Fifteen Percent Pledge founder Aurora James took to Instagram and posted: “Ok, here is one thing you can do for us…” and tagged the world’s largest retail brands, asking them for fair Black representation on their shelves. “We represent 15% of the population and we need to represent 15% of your shelf space,” she wrote.
She targeted her message to retailers, all with stores in Black communities and ads directed at Black people, that sell an array of products including clothing, beauty and food. These retailers depend on support from the Black community to stay in business. Since that post, more than 28 of the world’s most recognized retailers have taken the pledge, redirecting $14 billion in revenue to Black brands.
While strides have been made, the median family wealth of Black families is 10 times less than that of the average white family. The Fifteen Percent Pledge is helping to close the wage gap and increase access to employment opportunities for qualified Black and BIPOC candidates. The Fifteen Percent Pledge website includes a job board that only lists roles from companies that make diverse, inclusive and equitable hiring a priority.
Individual investors wishing to buy shares of public companies that support The Fifteen Percent Pledge have several options. Major retailers participating include Macy’s (Tii:M), Sephora, owned by luxury goods company LVMH (Tii:LVMHF), Nordstrom (Tii:JWN), Ulta Beauty (Tii:ULTA), West Elm, a Williams-Sonoma (Tii:WSM) brand, Yelp (Tii:YELP), Gap (Tii:GPS), MedMen (Tii:MMNFF) and Victoria’s Secret (Tii:VSCO).