Mass US retailers Walmart, Amazon and Target have retreated from their diversity, equity and inclusion (DEI) commitments, leaving Black, Indigenous and people of colour (BIPOC) beauty founders facing uncertain futures.
Over the past five years, these retailers championed DEI initiatives, pledging enhanced shelf space and a nurturing environment for BIPOC-founded brands. In 2020, Walmart CEO Doug McMillon vowed to create more opportunities for minority-owned businesses, including tailored shelf offerings to meet the specific needs of Black customers. Target committed to advancing Black-owned and Black-founded firms by providing access to resources and expertise, aiming to source and design significantly more products from Black creators, designers, vendors, agencies, contractors and suppliers. Amazon, too, introduced programmes such as the Racial Equity Action and Change (REACH) initiative to bolster diversity within its supplier base. These initiatives, ignited by the racial reckoning following the death of George Floyd in 2020, ushered a wave of diverse beauty brands into mainstream retail.
However, the current rollback of DEI initiatives (thrust in the spotlight under the Trump administration) by these retailers casts a shadow over BIPOC-founded beauty brands’ futures. The shift leaves these brands vulnerable as the market no longer prioritises their presence. “For many beauty founders, especially BIPOC-owned brands, getting into mass retail was already tough, and now it’ll be even harder. With these retailers pulling back, brands lose the shelf space, visibility and marketing support that helped them connect with customers,” says Felita Harris, chief revenue and strategy consultant at Raisefashion, a non-profit connecting BIPOC brands and underrepresented talent.
Reduced retail support mechanisms are a concern. “The real risk is that under pressure, resources shift away from early-stage support, even though brand-building takes investment beyond only being stocked,” says Nnenna Onuba, angel investor and founder of 100 Allies, an initiative that seeks to improve diversity in the beauty boardroom. Resources like accelerators and funding programmes are critical for smaller, emerging players seeking growth in the market, and as DEI commitments scale back, these resources might become less available. Onuba is watching closely, because although support programmes shouldn’t be affected entirely, she says she wouldn’t be surprised if companies continue to favour short-term rollback decisions across the board over long-term brand value creation.
The scaling back of DEI commitments also makes it harder for BIPOC beauty brands to break into mass retail — a process that was already an uphill battle given the landscape and barriers BIPOC brands face, spanning limited access to capital to scale stock often required in retail, and the challenge of proving market demand in a system that historically favours more prominent, well-known brands. DEI initiatives helped level the playing field by providing shelf space, marketing support and mentorship that gave BIPOC founders a better chance at market success. “If we lose shelf space in bricks-and-mortar and online, we are less visible to customers, and in order to be successful in the industry today, you need to remain top of mind,” says Priscilla Camacho, VP of sales at Nopalera, a Mexican beauty brand stocked at Walmart and Amazon.
How much shelf space brands will actually lose is unclear. On DEI rollbacks and the impact on BIPOC-beauty brands going forward, Walmart tells Vogue Business: “We are committed to ensuring the products our customers and members want are available in stores and online.” The company also rolled back their DEI initiatives in November. A Target spokesperson said the company didn’t have anything further to share on the DEI changes or ongoing support to BIPOC beauty brands other than that its ‘Belonging at the Bullseye’ strategy “has no immediate impact on any current supplier relationships and will work with suppliers from all backgrounds”. The company has reported the end of its three-year diversity, equity and inclusion goals and REACH initiative.
An Amazon representative said it’s “committed to creating a diverse and inclusive company”, and directed questions to its ‘Our Position’ page. However, Amazon operates on a different model from Target where beauty brands can either be third-party (3P) or first-party (1P) sellers (Walmart also offers 1P and 3P seller services). Many BIPOC-founded beauty brands operate as 3P sellers such as The Lip Bar, Nopalera and Mielle Organics, giving them control over pricing, inventory and branding requiring them to navigate Amazon’s competitive marketplace, which is heavily driven by SEO, paid ads and customer reviews.
For 1P sellers such as Black Opal, the partnership operates like a traditional wholesale partnership, where Amazon controls pricing and inventory decisions. With Amazon’s DEI rollbacks, brands that benefitted from the visibility provided by the company’s programmes may now face reduced organic exposure and fewer marketing opportunities. Plus, the algorithmic nature of Amazon’s search results (where top placement often requires ad spend and copious customer reviews) means that without ongoing DEI-backed support, BIPOC-founded brands risk losing ground.
Now, BIPOC beauty brands must contend with uncertainty and carve out new opportunities in a market that historically remains stacked against them.
The impact and ripple effect
Brand founders are vocal about the repercussions. Melissa Butler, founder and CEO of The Lip Bar, expressed her disappointment regarding Target’s DEI rollbacks on social media but said she also wasn’t surprised. CEO Jamika Martin of Rosen Skincare anticipates a reduction in support mechanisms like accelerators, funding, mentorship and favourable payment terms, all crucial for emerging brands. Desirée Rogers, CEO of Fashion Fair and Black Opal, voiced concerns over the timing of these rollbacks, coinciding with their expansion plans in Target stores (the brand is also stocked at Walmart and Amazon). “We were just expanding in Target in January and so the rollbacks have hit us exactly at a time that we didn’t need and I worry every day about what the impact is going to be on our business overall and what impact changes might have in terms of bricks-and-mortar with these particular stores,” she says.
The ramifications also extend beyond shelf space. Camacho says: “We were planning on a long-term stockist partnership and product reorders from a certain mass retail partner, but the conversations stopped in January this year. I expect them to resume, but we’re unsure of what the decision will be and until the retailer has a clearer strategy, our entire future with them is unknown.” The fallout from these changes will lie in reduced replenishment orders throughout the rest of the year and fewer entrants into the market, predicts Rogers.
Mass retail has been instrumental in scaling BIPOC beauty businesses. Black Girl Sunscreen reported $1.1 million in sales on Amazon over three months and The Lip Bar’s expansion within Target led to a 700 per cent increase in its footprint, according to the company. Per 2024 data from Nielsen IQ, a global management consultant firm, Black US beauty consumers spend an average of $370 online and $313 in-store annually, outpacing the total US beauty consumer spend by 4 per cent. This underscores the significant buying power and growth potential of the demographic. “The rollback of DEI initiatives threatens to destabilise this momentum, reducing retail access and increasing sales volatility for BIPOC brands,” says Onuba.
Investment prospects are also at stake. Large-scale investors often view a brand’s retail footprint as an indicator of growth potential. With reduced shelf space and shifting DEI priorities, investor confidence could wane. “Retailers’ DEI rollbacks don’t just put ‘big-volume’ partnerships at risk, but also send a signal to investors about the category, leading to decreased investor confidence,” explains Onuba. Harris agrees, adding that while traditional funding avenues may constrict, resourceful brands can pivot to alternative funding sources like grants and crowdfunding. “Those that can build strong communities, consistently deliver great products and show financial growth, will still find investment opportunities,” she says.
Moving forward
In response to mass retail rollback challenges, experts say brands need to be proactive. Harris advises founders to reassess their sales channels, emphasising the importance of aligning with retail partners that share long-term business goals. Retailers like Ulta Beauty and Sephora continue to uphold their DEI commitments, presenting viable alternatives. “Supporting diversity, equity and inclusion is essential to our business because we serve a broad and diverse community of beauty enthusiasts. Our goal is to meet the unique beauty needs of every individual while creating a space where everyone feels welcomed, valued and comfortable shopping,” says Ulta Beauty CEO Kecia Steelman.
“We firmly believe that inclusiveness makes all of our beauty experiences better,” says a Sephora spokesperson. “From the brands, products, expertise and experiences we offer, these principles will continue to guide us as we build beauty communities where all are welcomed.”
BIPOC-priority retailers such as Thirteen Lune and Luminicole Beauty, along with retailers participating in the 15 Percent Pledge — like Macy’s, Nordstrom, Moda Operandi and Blue Mercury — emerge as crucial allies in this landscape. “We can’t go backwards and make multicultural products niche or hard to find. We need to find ways to distribute with like-minded partners and make products accessible. Mass retail is not the be-all and end-all of the business,” says Nyakio Grieco, CEO and founder of Thirteen Lune.
Exploring boutique retail, concept stores and hospitality partnerships offers alternative avenues for brand visibility and consumer engagement. Thirteen Lune’s collaboration with American Airlines, featuring brands like Relevant Skin and Joanna Vargas in premium cabins, explores new customer discovery methods. Nopalera plans to strengthen ties with independent retailers and invest in pop-up stores alongside other Latin-founded brands. Camacho highlights the benefits of a co-op pop-up retail model. “The community loves it; therefore, it’s a win-win for everyone,” she says.
Fashion Fair and Black Opal are engaging in local events, such as a street shutdown in Chicago over Easter, to directly connect with consumers. Rogers says the importance of meeting customers where they are, beyond traditional retail spaces, is a strategy shift it will continue to invest in. “These spaces offer premium access, immersive brand experiences and a high-touch way to connect with consumers where beauty naturally fits into their lifestyle. While not a replacement for traditional retail, they create deeper brand loyalty in a different setting,” she says. “Community-driven retail is the future.”
A robust direct-to-consumer (DTC) strategy and omnichannel flexibility are also paramount. Onuba points to emerging platforms like TikTok Shop as burgeoning channels reminiscent of Amazon’s early days, offering brands greater control over their narrative and sales. Fashion Fair and Black Opal have revamped their websites, introducing features like online makeup consultations and loyalty programmes to adapt to the evolving retail landscape. “You’ll see us speaking to our people more directly and driving customers to digital sales. It [the digital changes] shores up those digital dollars,” says Rogers.
Harris says consumers play a pivotal role in shaping beauty retail’s future, urging consumers to support brands and retailers prioritising inclusivity beyond performative gestures. “The power of the dollar is real, and consumers can shape the future of beauty retail by choosing brands and retailers committed to diversity — not just when it’s trending but as a core value,” she says. Camacho echoes this sentiment, stressing that consumer purchasing decisions will determine the future landscape for BIPOC beauty brands. “Consumers will dictate our future, and I know many founders will hope customers make informed purchasing decisions that align with value over convenience.”
As founders recalibrate their strategies, Onuba says diversification is key. “Now more than ever, never put all your eggs in one basket. Brands need to expand their retail partnerships, funding sources and customer acquisition strategies,” she says. Bilal Kaiser, founder and principal of social media and influencer firm, Agency Guacamole, says this is an opportunity for smaller retailers, pop-ups and DTC brands to create deeper connections with their audiences and become go-to destinations for inclusive beauty.
Despite the challenges posed by the rollback of DEI commitments, experts remain hopeful. “Diversity in beauty isn’t disappearing. It is just finding new ways to grow,” concludes Harris.
This article has been updated.
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