Countering DEI Retrenchment, Macy’s And AMP Beauty Partner To Spotlight Brands From Underrepresented Founders
While some retailers are scaling back their commitments to diversity, equity and inclusion, Macy’s is making a move in the other direction by partnering with online commerce and insights platform AMP Beauty to spotlight emerging beauty brands led by underrepresented founders.
The partnership launched last week with seven beauty brands on Macy’s website, including Teluris, Bejou, Dealbodies, Bonita Fierce and Hairbrella, curated by AMP Beauty. For most of the brands, the partnership represents their debut at a major retailer. Another seven brands are slated to be onboarded soon. AMP Beauty and Macy’s partnership has been in the works for over a year and resulted from Macy’s connecting with AMP Beauty through the platform’s participation in Techstars’ startup accelerator and development program last year.
“At a time when diverse voices are being deprioritized, Macy’s has stayed consistent with their messaging,” says Montré Moore, co-founder and CEO of AMP Beauty. “They already have over 900 underrepresented suppliers in their portfolio, and this partnership builds on that momentum in a very intentional way.”
Macy’s partnership with AMP Beauty is far from its only DEI-related effort. The department store retailer has pledged 5% of supplier spending to vendors from diverse owners. In 2021, it started The Workshop at Macy’s accelerator designed to empower underrepresented business owners, founders and designers. In 2022, it established funding program S.P.U.R. Pathways aimed at supporting underrepresented and underserved businesses.
Macy’s continued dedication to DEI comes as Target has faced a backlash to its decision to end DEI initiatives and declines in store visits. For 10 weeks in a row, Target’s foot traffic has decelerated. Meanwhile, Costco, another retailer sticking with DEI, has had 15 weeks in a row of foot traffic gains.
Macy’s can hardly afford a customer retreat. In fiscal year 2024, its net sales were down 3.5% to $22.3 billion and same-store sales slid .9%. A third of Macy’s sales are digital, and it’s had a strategy of growing its digital footprint. As of Feb. 1, there were 450 Macy’s stores, but the company is in the midst of a turnaround plan that will reduce that number to 350. For fiscal year 2025, Macy’s estimates its net sales will land between $21 billion and $21.4 billion and same-store sales will drop between .5% and 2%.
AMP Beauty, which previously partnered with wholesale marketplace Faire in 2020 and Target in 2021, offers analytics, infrastructure and insights to brands that are often shut out of or struggle at large retailers. The brands generally don’t have access to information on key performance indicators like marketing spend or repeat purchase rates. AMP Beauty’s goal is to de-risk relationships for both brands and retailers through its data.
“It cuts out a lot of the first-time heartache that most brands face because we’ve already figured that out for them,” says Moore. “We’re able to guide and align each brand based on what a retailer is looking for.” She adds that Macy’s, for instance, values repeat purchase rates and brand loyalty.
AMP Beauty is on pace to reach $2.9 million in revenues this year, with a projected 656% average month-over-month growth. Nearly 31% of its revenues are from business-to-business transactions, which have experienced 398.3% month-over-month growth. Its remaining revenues are from direct-to-consumer sales, and they’ve seen a 606% month-over-month increase.
Moore launched AMP Beauty in 2020 with two sorority sisters, Phylicia Phillips and Angel Lenisas, as an online marketplace selling clean and sustainable products from emerging brands by underrepresented founders, many of which cater to younger consumers demanding authenticity and transparency from beauty companies. At Macy’s, the majority of customers are boomers and gen Xers, and it’s had difficulties attracting millennial and gen Z shoppers.
By the end of the year, AMP Beauty plans to enlarge its assortment of 50 brands with 133 new additions, more than double what it usually matriculates. Haircare, women’s health and international brands are areas of focus. Period care brand Rif Care and mouth tape purveyor Dryft Sleep are popular brands in AMP Beauty’s selection.
AMP Beauty is in the process of trying to raise $3 million in seed funding and has already pinned down 27% of that amount. The seed funding will go toward expanding its sales team, investing in technology and scaling strategic partnerships.
AMP Beauty has inked a deal with Visa designating it as the financial giant’s official beauty partner for 2025. In the future, Moore is interested in the company securing partnerships with Sephora and Ulta Beauty. She declined to share the financial structure of its retail partnerships.
Earlier, AMP Beauty raised $460,000 in funding via dilutive and non-dilutive sources. Among its dilutive funding sources are Domonique Fines, a scout with Barclays Black Formation Investments (BBFI), Techstars, Backstage Capital and Fearless Fund. Among its non-dilutive funding sources are Visa, SAP, UCLA Venture, the Microsoft Technology Grant, BeRare, Pledge LA and the Economic Opportunity Grant Program.
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