Will Giant Food’s shelf labels with diversity call-outs drive sales?
Ahold Delhaize USA’s Giant Food chain has become the first U.S. grocer to identify products owned by minority businesses on shelf labels.
The updated labels at the store level as well as online highlight businesses that are women, Black, Asian-Indian, Hispanic, LGBT, Asian-Pacific or veteran-owned. Over 3,100 products across Giant stores will feature the updated shelf labels, representing 218 of the chain’s vendors.
During 2021, Giant will also highlight minority vendors on a new supplier page on GiantFood.com through storytelling and product spotlights.
The updated labels follow the 2017 introduction of the HowGood rating system that offers insights into ingredient sourcing and labor practices as well as the 2018 launch of the Guiding Stars nutrition ratings system.
The diversity transparency also builds on Giant’s supplier diversity efforts. Ira Kress, president of Giant Food, said in a statement, “We’re committed to making it easier for customers to identify product attributes that are important to them by fostering a diverse and inclusive network of suppliers that reflects the unique backgrounds and experiences of our Giant family, our customers and our communities.”
Many retailers have long focused investments in minority-owned businesses. In 2005, for example, Walmart established a $25 million private equity fund to directly issue equity investments in women and minority-owned business enterprises.
Diversity efforts across corporate America, however, have been amplified since the killing of George Floyd in Minneapolis while in police custody last year and the racial justice protests that followed. Retailers have made commitments to minority hiring, antiracism training and supplier diversity. Recently, Meijer introduced its first-ever Supplier Diversity Summit and Schnuck Markets launched a new supplier diversity program.
Macy’s, Sephora, West Elm and Madewell are among the retailers that have signed the “15 Percent Pledge” to commit 15 percent of their shelf space to Black-owned businesses.
Few studies appear to have been done on consumers’ propensity to support minority-owned businesses. Accenture’s “14th Annual Holiday Shopping Survey” found two in five planned to support and shop with minority-owned businesses. A similar proportion indicated they would shop with retailers that support the Black Lives Matter movement.
- Giant Food Introduces Shelf Labels to Spotlight Products Owned by Minority – Giant Food/PRNewswire
- Giant Food Stores Earns Top Marks In 2019 Corporate Equality Index – Giant Food
- Walmart Establishes Private Equity Fund To Drive Women and Minority-owned Business Growth – Walmart
- Schnucks Announces New Supplier Diversity Program – Schnuck Markets, Inc.
- Dollar General Announces 2020 Supplier and Diversity Innovation Summit – Dollar General
- Meijer Announces First-Ever Supplier Diversity Summit Aimed at Ensuring Inclusivity on Its Shelves – Meijer/PRNewswire
- Kroger Announces Framework for Action: Diversity, Equity & Inclusion Plan to Uplift Associates, Customers and Communities – The Kroger Co.
- Sephora commits 15 percent of its shelf space to black-owned brands – RetailWire
- 15 Percent Pledge
- Accenture’s 14th Annual Holiday Shopping Survey – Accenture
DISCUSSION QUESTIONS: Do you see many benefits to calling out products made by minority-owned businesses on shelf labels? Is it a sales opportunity, a CSR (corporate social responsibility) benefit, both or neither?