Best Buy is making a big investment during the next four years to diversify its operations, including supply chain, advertising and media.
The consumer electronics giant has committed to spend at least $1.2 billion with Black, Indigenous and people of color and diverse businesses by 2025. As part of the pledge, Best Buy plans to increase all forms of spending with BIPOC businesses in nearly every corner of the company — from how it brings goods and services to stores to its supply chain to where and how it advertises.
The company will dedicate nearly 10% of its annual media spend to diverse media by 2025, and ensure that a minimum of 30% of its paid advertising features BIPOC, LGBTQ+ and diverse-abilities cast members and family structures by 2023.
In addition to the financial investments, Best Buy will support the growth of the businesses by providing access to its retail capabilities such as supply chain, sourcing and product development. The company said it would also eliminate barriers and “create a more seamless path for BIPOC businesses to do business with Best Buy.”
“We better serve our customers, employees and communities when there are more diverse voices at the table, businesses we work with and stories being told,” said CEO Corie Barry. “We’re committed to taking the necessary actions to support, grow and reduce the barriers faced by BIPOC entrepreneurs and businesses. There is more work to do to make the kind of systemic permanent changes necessary to achieve racial and social equity in our company and our communities and we are just getting started.”
To help BIPOC businesses and entrepreneurs get access to funding, Best Buy will invest both financially and its expertise into partner organizations, such as venture capital firms, that share the vision of accelerating diverse representation in the technology industry.
To increase the number of diverse businesses and suppliers, specifically in the areas of technology innovation and product development, Best Buy said it will continue to create and build partnerships with historically Black colleges and universities and various community organizations. This includes its previous commitment of providing $44 million to expand college prep and career opportunities for BIPOC students, which includes scholarships for HBCU students and increasing scholarship funding for Teen Tech Center youth. These innovative partnerships and mentoring opportunities will help create a pipeline of BIPOC professionals and entrepreneurs.