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Arsha Jones, the founder and CEO of Capital City, describes her journey in getting her mambo sauce—a sweet and tangy condiment deeply rooted in D.C. history—into major retail chains as a significant achievement. The sauce, which has grown in popularity since the 1960s and is now a staple in many local restaurants, represents more than a business venture for Jones; it embodies the cultural identity of the community. Each major distribution deal she secured felt like a recognition of this cultural legacy.
“When a major retailer says yes, it’s more than a sales opportunity,” Jones articulated. “It signifies an affirmation of our culture, our product, and our perseverance.”
However, the landscape has shifted dramatically for Black small business owners in recent months. In the wake of pressure from conservative circles following the Trump administration’s commitment to dismantling Diversity, Equity, and Inclusion (DEI) programs, many retailers have begun to retract their earlier commitments to these initiatives. For instance, in November 2024, Walmart announced a decision to scale back its DEI efforts and would not continue its Center for Racial Equity, which was established post-George Floyd’s death to address racial injustices. In another alarming announcement, Amazon revealed plans to wind down various programs focused on representation and inclusion. Furthermore, Target decided to end its initiatives aimed at improving diversity after previously pledging to enhance its Black workforce and forming committees dedicated to racial equity.
Consumer reactions to these backpedals are intensifying, manifesting as boycotts and demands for Black-owned brands to withdraw from shelves. This puts Black-owned food businesses like Jones’ Capital City in a challenging position, where they must consider both customer sentiments and the viability of their operations.
“We face the challenge of running a successful business while also being part of the Black community,” states Jones, whose products are available in major retailers and online. “We experience the frustration and resentment from consumers in light of these reversals. We exist in a unique space, navigating these concurrent conversations.” Although Capital City continues its retail partnerships, Jones emphasizes a strong commitment to her local D.C. community.
Target may not be the only retail giant to roll back on its DEI commitments, but it has become a focal point for several organized boycotts, including a notable 40-day fasting initiative led by Black faith leaders in conjunction with the Lenten season. Many supporters viewed Target’s prior dedication to diversity as genuine, bolstered by a visible commitment and significant investments during the racial reckoning of 2020. CEO Brian Cornell’s poignant acknowledgment of the societal impact of Floyd’s murder resonated with many, and in 2021, the retailer even pledged $2 billion toward Black-owned businesses by 2025.
“Target has truly gone above and beyond in its past efforts,” remarks Jones. From proactive marketing efforts during Black History Month to collaborations with Black entrepreneurs, the company’s earlier strides and visibility positioned it as an ally. It had even received accolades for its commitment to diversity.
Now, Jones observes skepticism from former supporters regarding those initiatives, stating, “The prevailing sentiment is that the recent dismantling of these programs suggests that earlier investments may have been superficial, and understandably, people’s feelings are hurt.” (Target has not provided a comment on these issues.)
Conversations regarding product withdrawals highlight the complexities faced by smaller businesses. With fewer resources, many Black-owned enterprises find it challenging to comply with consumer calls for action, which, if enacted, could severely impact their financial stability.
“Small businesses were often collateral damage during the heightened focus on racial equity following George Floyd’s death,” explains Rashida Maples, an attorney specializing in business law. She emphasizes that the agreements forged during 2020 primarily benefitted large retailers, leaving small business owners vulnerable and inadequately protected. In her role, she advocated for contractual improvements but often faced resistance from retailers.
“Expectations placed upon small and Black-owned businesses can be unreasonably high,” Jones observes. “This sentiment doesn’t diminish the passion behind the criticisms, but the reality is more complex than merely suggesting a withdrawal of products.”
In her dealings with major retailers, Jones typically engages through structured purchase orders, which entail fulfilling requests and receiving payment post-delivery.
“It’s a straightforward process, yet it carries inherent risks,” she acknowledges. “When a retailer opts to remove products from stores, they usually expect the brand to incur the associated financial losses. Reimbursing them for unsold goods is a monumental request that can affect essentials like wages and health benefits for our team. Consequently, this type of withdrawal can threaten the livelihoods of our employees.”
Moreover, small brands often depend on large retailers for their growth trajectories. Access to distribution networks allows them to reach a much broader customer base than they could independently.
“Without owning our distribution routes, partnerships with well-positioned retailers become essential,” asserts Pernell Cezar, co-founder and CEO of BLK & Bold coffee. He explains that when Black brands struggle with distribution or timely product delivery, retailers play a crucial role in filling those gaps. “Retail partnerships are vital for establishing household brands,” he states.
Jones believes that her brand’s growth is largely attributable to retail distribution, despite also selling directly online. Currently, direct-to-consumer sales comprise only about 15% of Capital City’s total revenue.
“The reality is most consumers still frequent grocery stores, making those retail spaces essential for visibility,” she notes. “This exposure introduces our product to new customers who might not engage with us otherwise. Each new person discovering our products in grocery aisles is a potential lasting supporter.”
While relying exclusively on online sales is not viable, Jones views the DEI rollbacks as a reminder of the necessity to diversify retail partnerships. Enhancing connections with local stores not only aligns with her brand’s community-focused values but also guarantees consumer options if major retailers lose their support.
“It emphasizes the importance of proactively seeking various retail partnerships,” she explains. “Providing consumers the choice of how they support us is crucial.”
Maples believes there is a pivotal opportunity for Black businesses to reimagine how they connect with their consumers. “Now is the time for us to rethink our service delivery,” she insists. “After experiencing setbacks, we must revise and adapt our strategies.”
Cezar supports the idea of diversifying distribution strategies to lessen reliance on a select few large retailers. However, he recognizes the unique challenges that many Black business owners face during this transition.
“I acknowledge the complexity of diversifying, especially for founders striving to do so while simultaneously managing financial sustainability,” he notes. “We aspire for visibility and respect in the marketplace, but it’s critical to understand where our network of suppliers stands and how we can encourage investment in their growth.”
Ashley Gaddy Robbins, a DEI consultant with a PhD in cultural studies, identifies ‘livelihood’ as the central theme connecting these discussions. She emphasizes that for entrepreneurs, the need for change extends beyond personal profitability; it encompasses the well-being of families and communities they support.
As Black-owned businesses explore new avenues for expansion, Cezar stresses the importance of maintaining an ongoing dialogue with consumers regarding their preferences and expectations in supporting Black products.
“It’s crucial to genuinely heed consumer voices in these discussions, ensuring that action occurs in response,” Cezar asserts. “Ultimately, accountability rests on how well companies listen and respond to feedback.”
In this context, Robbins suggests that business owners should actively share their narratives. Amid faltering trust, it is essential to remind customers of the foundation that inspired their support.
“Reinforcing your story—your identity, your journey, your history—remains crucial, particularly when skepticism arises,” she advises. “You must keep customers engaged and aware of what drove them to support you initially.”
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