Why Macy’s is investing in underrepresented business owners

America has long been considered the land of dreams, and while not every dream comes true, Macy’s is doing its part to ensure that some do—26 to be exact.

Founded in 2011, The Workshop at Macy’s—a vendor accelerator program designed to assist business owners from underrepresented communities with industry knowledge, resources, and tools—is currently welcoming its latest cohort of 26 business owners.

All of the participants have access to Macy’s funding resources, its suppliers list, and a chance to compete for a $100,000 business grant, courtesy of Klarna, Spark Foundry, and Bazaarvoice. They will also have the opportunity to put up a pop-up shop on the Macy’s website and receive $5,000 upon completion of the program.

The initiative is part of Macy’s social purpose program, Mission Every One, and aims to uplift diverse business owners.

“Through programs like The Workshop at Macy’s, entrepreneurs have the opportunity to learn from retail experts and receive the knowledge and tools they need in order to scale their business, generate significant brand visibility, and ultimately grow,” Sherieka Smallwood-Morgan, director of retail strategy at Macy’s, told Retail Brew via email. “This program is illustrative of our longstanding commitment to creating a more sustainable and equitable future as we offer resources to fuel entrepreneurial development and growth.”

She added that the program has so far helped develop more than 200 diverse-owned businesses from different backgrounds. Its 2024 class includes entrepreneurs across five retail categories: apparel, beauty, kids, home, and center core.

And while diversity is essential to the program, aspiring participants have to meet certain criteria, such as being a majority owner (51% or more) or co-owner of a business; a US citizen; a woman, veteran, person with a disability, someone who identifies as LGBTQ+; or someone of Black, Hispanic/Latino, Native American, Asian-Indian, or Asian-Pacific origin; have an active business for a minimum of two consecutive years; and a brand based in the US.

For those who make it into the program and complete it, the journey goes on. Following the workshop, participants are introduced to buyers and digital marketplace teams across Macy’s for the opportunity to onboard as vendors.

Smallwood-Morgan said it’s an opportunity for large retailers like Macy’s to provide mentorship for emerging brands that continue to face challenges with limited resources and the funding needed to build brand awareness, target the right audiences, and access the distribution channels to reach more customers.

“Within the industry, underrepresented businesses face numerous challenges when it comes to scaling their business, sourcing materials, finding proper funding, and oftentimes face systematic barriers hindering their chances to succeed or reach their goals,” she said. “Those challenges can be detrimental to businesses, and we believe that everyone deserves the opportunity to showcase their talent and skills.”