Supermarket blackout - lack of quality grocery stores in black communities - ST

Black Enterprise, July, 1999 by Monique R. Brown

The lack of major food retailers is devastating African American communities.

It's time to use your dollars to fill the gap.

LIKE SOME AFRICAN AMERICANS, ZELDA OWENS turned to buses, subways, taxis or car pooling to get to a quality supermarket in New York City. "The Associateds or C-Town Supermarkets in this area don't offer variety. So, I often shopped at D'Agostino's in downtown Manhattan to get the products I wanted," admits the 32-year-old Harlem native. According to Owens, the lack of quality grocery stores introduces a much bigger issue: Harlem residents lack healthy food choices as well other basic services, such as print shops, dry cleaners, newspaper stands, florists and banks with ATMs. "It seems like corporations feel that it's not glamorous or sexy to have a business in a predominantly black neighborhood. I wanted to change that," says Owens. So, she called her associates at the New York State Black Republican Council to announce her plans to run for the state Senate. Although she didn't win, she got over 1,800 votes. "And that was with no picture, name recognition or television commercials," she states.

Pressure from residents like Owens and others was responsible for a new Pathmark supermarket being built on the east side of Harlem between Lexington and Third avenues. While the supermarket took more than 10 years to complete due to political conflicts, financing issues and some local opposition, the superstore has a good selection of products and fair prices. But Owens thinks there is room for more chains, since the store only has one location in the Harlem area. "In this neighborhood, you don't have access to the variety you get in Midtown and other residential areas," she insists. "We also deserve options."

Generally, major supermarket chains steer clear of African American communities because they underestimate the community's potential spending power and overestimate the risks. This deficiency in black neighborhoods results in fewer employment opportunities, fewer competitively priced product choices and little access to philanthropic contributions. And the problem isn't just restricted to poor inner-city communities. Even some African Americans in the more affluent neighborhoods have to take a hike when it's time to go food shopping. But you can secure more quality grocers with better products and services in your neighborhood by taking an active stance. Here's how you can fill the gap.

FERRETING OUT THE FALLACIES

The majority of supermarkets are located in suburban areas that are still predominantly white. Urban Supermarkets, a report issued by the Food Marketing Institute (FMI), cites numerous reasons why the majority of the major chains refuse to put facilities in African American communities. One claim is that developers have difficulty acquiring land in urban areas. Another is that development costs, such as building demolition, ground leveling and cleanup, can be higher in urban areas than in suburban locations.

"The land issue is somewhat realistic," admits Jonathan "Johnny" Johnson, president and CEO of Community Pride Food Stores (No. 55 on the BE INDUSTRIAL/SERVICE 100 list) in Richmond, Virginia. But he also says the major supermarket chains need to be a little more creative when they look at urban areas. "You can't expect to have a suburban store in an urban area," he insists. "Instead of having a long, flat store, for example, some of the larger chains should consider having a store with two or three floors and an elevator."

The FMI report also highlighted other issues--local politics, negative reactions to commercial development, environmental concerns and the need for specialized marketing strategies--in response to why the major supermarket chains avoid African American communities.

But some aren't convinced that these reasons are valid. "These concerns will affect any supermarket owner, regardless of whether [the store is in] an urban or a suburban neighborhood," says Roderick Mitchell, president of Restoration Supermarket Corp. (No. 89 on the BE INDUSTRIAL/SERVICE 100 list), a Pathmark franchise in Brooklyn, New York. Mitchell also says the "high crime rate" that is often associated with urban stores is the product of misinformation: "There is still the perception that black neighborhoods are high risk because people associate color with high crime." He says that contrary to popular belief, crime is not an issue for his supermarket, located in Brooklyn's Bedford Stuyvesant neighborhood. In fact, the Boston Consulting Group study reports that this Pathmark is one of the highest sales generators in the 144-store chain. "High crime in this neighborhood is a perception that's not based on reality. People are very comfortable shopping at Restoration Plaza. Other merchants use the misperception as justification for charging higher prices or not entering the neighborhood at all."

The lack of supermarkets in inner cities, where the majority of African Americans live, is largely based on the same stereotypes that affect other aspects of black life. Aside from the assumptions about excessively high crime rates, the owners of many mainstream supermarkets assume the residents of African American neighborhoods are less educated, disproportionately dependent on government assistance programs and too poor to afford their products and services. Nothing could be further from the truth.