originalAfrican-Americans Forced to Spend 2/3 of Their Retail Dollars Outside of Their Neighborhoods
From: <
http://www.chicagodefender.com/page/business.cfm?ArticleID=3370>Chicago Defender - IL, United States
Paper bag test: Retailers shun big bucks in Black neighborhoods
by
Kimbriell Kelly, Chicago Reporter
December 23, 2005
Retail Runaround:
It's 7:45 a.m. Tina Saphir has been awake and milling about for hours. She
glances at the corner of her vestibule at a heap of recently purchased
merchandise. Everything must go. Either it didn't fit or didn't work. But
the mother of three decides that it must wait for another day.
Today, she's headed on a road trip. It's one that doesn't happen as often as
she'd like because of time and distance. But, with the minivan gassed up and
the trunk full of beverages, she's just about ready to go. Her destination:
the grocery store.
It will be late afternoon by the time Saphir returns. She'll spend a
majority of the next four hours driving to and around a mostly white North
Side neighborhood searching for groceries and other items at stores she
cannot find in her predominantly black South Side neighborhood. "There's
money on the South Side and nowhere to spend it," said Saphir, 36, an
African American who lives with her husband and their three children in the
Kenwood neighborhood.
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During this holiday shopping season, residents of Chicago's black
communities are likely to spend nearly two-thirds of their money outside of
their neighborhoods, far more than those living in Latino, mixed or white
areas, a Chicago Reporter analysis of consumer market information shows.
In Chicago, the rate of major retailers per 10,000 residents is nearly three
times higher in white areas than in black areas, according to the analysis.
Some black neighborhoods are home to far fewer retailers than white
neighborhoods even when their incomes are similar.
This means blacks in Chicago are likely to spend more time, money and energy
than whites when they buy gifts, groceries, clothes, tools and other items
at stores located far from their homes. It also means black neighborhoods
lose out on billions of dollars in consumer spending each year that could
help revitalize those areas. Furthermore, Chicago could be losing millions
of dollars in sales tax revenue as many drive to south suburban Calumet
City, Lansing and Evergreen Park, among others, to do their shopping.
The Reporter mapped nearly 900 Chicago addresses of companies that Stores
listed as the top-selling retailers in seven categories: supermarket,
apparel, department store, home improvement, drug store, restaurant, and
value retailer, such as Target. Stores, a monthly magazine of the National
Retail Federation, the world's largest retail trade association, ranked the
retail companies by their 2004 sales revenues.
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