Why Black shoppers are leaving big retail behind

Over the years, shopping behaviours have shifted tremendously, with online shopping being at the forefront of that change. One thing that came out of this change is that more people are turning to online platforms for Black-owned hair care products.

In a Strategic Solutions International Pulse Report (SSI) created by SSI founder Romina Brown, a key finding reveals that retail chain sales in multicultural hair care have been on the decline since September 2024, with more shifting to online, beauty specialty and independent beauty channels. Brown noted that this tremendous shift is mainly rooted in consumer preferences.

In the United States, there has been a value-driven alignment towards supporting brands and retailers that are aligned with the values that are important to a particular segment. This has led to more selective spending, with consumers preferring to shop at retailers that align with being sensitive to cultural differences, recognizing those differences, and even if not catering to that culture, will make the environment welcoming for everyone.

With consumers being more selective of where they spend their money, more are choosing to spend their money online, citing: convenience as an option, easy access to an assortment of products available at their fingertips, and not having to leave the house and find a parking space.

   “For me, the biggest impact is consumerism,”

Online sales are growing, with Amazon being at the forefront as the preferred platform for online shopping. While 81% of those surveyed said they use Amazon as their main source for online shopping, TikTok Shop, and direct-to-consumer sites from brands and other social media sites are also popular for online shopping among consumers. As Brown mentioned, online sales are now taking centre stage for multicultural beauty products, particularly for textured hair.

      “For me, the biggest impact is consumerism,” said Brown, who noticed that this change in shopping patterns was mostly driven by consumer behaviour. It’s a demonstration of the economic power of communities. Shifts occur all the time based on availability and the decisions retailers are making. There are many other factors in this shift in shopping patterns, but Brown noticed the leading factor stems from the control consumers have.

Overall, consumerism is the biggest impact brands need to recognize, because the consumer’s perception mainly controls their brand, even on social media. If a brand receives a negative perception through one post and it goes viral, it can compromise their integrity or the equity they have established and built.

As Brown mentioned before, Amazon is at the forefront of the multicultural hair care space due to convenience, consumers being able to get anything they want and their quick delivery services. TikTok is also a leading driver of consumer influence, as it’s a very engaging social media and entertainment platform. It also short-circuits the purchase cycle. While engaging with content, a consumer has the opportunity to buy a product featured in a TikTok short instantly, whether it be a haircare product, wigs, or a fragrance, for example.

Brown noted that when she was at a conference, the CEO of TikTok, Shou Zi Chew, shared that one of the largest impacts of TikTok is that what happens on the platform does not stay on the platform. So TikTok drives retail sales. Consumers will learn about products. However, if they want a tactile experience, they will go to a retail brick-and-mortar store where they can touch and feel the product.

An example of this would be with Eos lotion. Sales for the product went through a viral explosion during campaigns and influencer postings amongst teenagers, who were the main ones appealed to by the product and behind the driving retail force.

Although more people are turning to online platforms for their shopping trips, brick-and-mortar stores like Target are leading in the expansion of certain hair care brands overall. When looking at the data from Target, Brown noticed Black-owned brands overall are growing in hair care. She also saw that some of the mainstream brands that positioned right at the intersection of textured hair are growing as well. Some of those brands are: L’Oréal, Not Your Mother’s and Kristen Ess.

The SSI Pulse Report is part of a new monthly series that is aimed at providing brand partners with syndicated retail data that incorporates cultural insight. “The insight gives you more of an ability to future-proof your business,” said Brown, who said the intention is to make sure their brand partners have lasting powers that they can achieve sustainable success in a rapidly changing market. The SSI Pulse Report will continue to highlight what is viewed as hot-button issues and trends that category, brand and retail partners need to be aware of and adjust their strategies to fit where the market is headed.