As Target Corporation grapples with a prolonged sales slump following its controversial retreat from diversity, equity and inclusion initiatives earlier this year, one of its prominent boutique beauty brands is writing a surprising counter-narrative.
The Lip Bar, the largest Black-owned makeup brand carried by the big-box retailer, is projecting remarkable growth despite the turbulence. Founded by Melissa Butler, a 2009 FAMU business finance graduate, the vegan beauty company expects a 40% increase in sales this year and anticipates doubling its pretax earnings—a testament to strategic planning that began long before the current retail crisis.
"The irony isn't lost on us," Ms. Butler said in a recent video interview from her Detroit headquarters. "While our weekly sales at Target are down 30-40%, which is undeniably painful, our overall business is experiencing its strongest growth year."
The divergence tells a story of modern retail survival. When Target announced in January it was scaling back its DEI programs, sparking customer boycotts and contributing to seven consecutive months of declining sales, The Lip Bar found itself in a precarious position. As both the retailer's largest Black-owned beauty brand and a company that had built its identity on inclusive representation, Ms. Butler faced a complex challenge.
Her solution emerged from a strategy implemented years earlier. "Diversification was our insurance policy," explained Ms. Butler, whose brand first landed on Target shelves in 2018. "While many consumers know us for our viral lip products, we've systematically expanded into skincare, complexion products, and other categories that appeal to broader audiences."
This expansion coincided with a deliberate effort to diversify The Lip Bar's retail partnerships. Today, the brand's products are available at Walmart, CVS, Amazon, and through its direct-to-consumer website, creating multiple revenue streams that have cushioned the Target decline.
The journey reflects Ms. Butler's business acumen, honed at FAMU's School of Business and Industry. After starting the company in 2012 with $5,000 and a mission to create inclusive, vegan beauty products, she faced a very public setback on "Shark Tank" in 2015, where investors dismissed her products as "clown makeup" and told her to abandon the venture.
Instead, she persisted, eventually landing her Target partnership in 2018—a milestone for any independent beauty brand. That partnership now continues amid complicated circumstances.
"When the DEI decision came down, I immediately reached out to my contacts at Target," Ms. Butler revealed. "We hoped for a reaffirming statement about their commitment to diversity. That statement never came, which was disappointing. But pragmatically, they've honored all business commitments to our brand."
Industry analysts see The Lip Bar's success as a case study in resilient brand building. "This demonstrates the power of controlling your own narrative," said Elena Torres, a retail strategist at McKinsey & Co. "By developing multiple product categories and distribution channels, The Lip Bar ensured that no single retailer could determine its fate."
For Ms. Butler, the experience has reinforced her founding philosophy. "Representation isn't a trend—it's our foundation," she said. "While circumstances change, our commitment to creating products for underserved communities remains. That authenticity is what our customers continue to support, regardless of which retailer they shop."
As she looks toward 2026, Ms. Butler is eyeing further retail expansion and new product developments, proving that sometimes the most revolutionary business move is simply to outlast your challenges.