Dive Brief:
- Continuing its diversity commitment, Macy's has unveiled its S.P.U.R. Pathways initiative, a multi-year program designed to support entrepreneurs of underrepresented backgrounds and close the racial wealth gap, the retailer announced on Monday.
- According to the press release, the retailer said it plans to invest $30 million and provide educational resources for underrepresented businesses during the next five years, providing participating companies with $100 million in capital.
- Through its partnership with Momentus Capital, the company also plans to provide up to $100 million in capital to businesses at various growth stages.
Dive Insight:
Through the S.P.U.R. Pathways program, Macy's wants to guide businesses run by underrepresented entrepreneurs through everything from credit improvement and business plans to financial reporting and personalized services, according to the announcement. Citing research from Crunchbase, the company said it aims to reduce the barriers to funding access for underrepresented business owners.
"As part of our social purpose platform, Mission Every One, this investment will provide access to capital resources that will advance the next generation of brands and service providers," Jeff Gennette, chairman and C.E.O. of Macy's, Inc. said in a statement. "By investing in high-growth underrepresented businesses at all stages of growth, we intend to create meaningful economic impact within our communities, while serving our customers."
The S.P.U.R. Pathways initiative builds upon the company's previous efforts to uplift entrepreneurs from historically disadvantaged backgrounds. The company also runs The Workshop at Macy's, which supports vendors of color, women vendors and LGBTQ+ entrepreneurs and veteran-owned businesses.
Earlier this year, the company also unveiled a commitment to spend $5 billion by 2025 to support social and environmental change. As part of the effort, the company said it would bring people from underrepresented backgrounds into its leadership, increase hourly pay for workers and integrate products made with sustainable materials into its assortment.
Other retailers have been turning their attention to racial inequality in recent years following the 2020 Black Lives Matter protests. Last year, Nordstrom signed a 10-year agreement with the 15% Pledge, which aims to end racial inequality in the retail industry. As part of the commitment, the retailer said it will increase its purchases from and partnerships with Black-owned and founded brands by 2030.
