City lights beckon to business - providing goods and services for people who live in the cities; includes related article on What We Love and Hate About Cities

American Demographics, Oct, 1997 by Christy Fisher

Retailers are smart to pay attention to the ethnic diversity of customers. The Census Bureau projects that America's nonwhite population may grow from 27 percent of the total in 1996 to 47 percent by 2050. Sears, which is the only major retailer in downtown Oakland, California, is busiest weekdays between 11:30 a.m. and 1:30 p.m. It caters to a population that is 45 percent black, 22 percent Asian, 20 percent white, and 13 percent Hispanic.

For its black women customers, Sears carries specially targeted cosmetic lines and its own brand of women's apparel called African Village, created by a black designer. Sears also carries an extensive line of petite sizes for its Asian customers and smaller shoe sizes for Hispanic customers.

"Our apparel business is very, very strong--in men's, women's, and children's--relative to an average Sears store," says Ray Velkers, Sears district general manager for the greater San Francisco area. "We sell much more apparel, jewelry, and cosmetics. The African-American community is very fashion-conscious. We do much more business in the higher-fashion lines than in our casual line. Rice cookers also are a big seller. But we don't sell much hardware and lawn and garden."

Not much call for riding lawn mowers downtown, perhaps, but a vital marketplace all the same. Businesses are beginning to discover what city residents have known all along--cities aren't only a great place to visit, they can be a good place to settle down.

TAKING IT FURTHER

Analysis of March 1996 Current Population Survey data from the Census Bureau was done by Survey Intelligence of Ithaca, New York. The survey interviewed a sample of 50,000 adults designed to produce reliable national estimates. Central cities are defined by the Office of Management and Budget as part of the metropolitan-area classification system. For more information about metropolitan areas and their components, call (301) 457-2419. Because the Census Bureau doesn't disclose record-level data for places with populations of less than 100,000, this analysis excludes those who live in central cities that fall below this level, as well as those who live in cities surrounded by suburban territory that doesn't meet the requirement. In total, about 13 percent of central-city residents are classified here as noncity population. The analysis also excludes those who Live in cities that aren't in metropolitan areas or don't qualify as central cities in metropolitan areas.

Other research resources on central cities include the Initiative for a Competitive Inner City, which is studying successful inner-city retailers and buying power of inner-city residents; telephone (617) 292-2363. The Public Voice for Food and Health Policy in Washington, D.C., has extensive reports on supermarket retailing in the inner city; telephone (202) 371-1840. Fannie Mae's National Housing Survey 1997 interviewed 1,652 people by telephone for City Life, Homeownership, and the American Dream; telephone (202) 752-6707. The U.S. Department of Housing and Urban Development issued a June 1997 report, The State of the Cities, which also details the current administration's urban agenda; telephone (202) 708-0544.