Retailing, seemingly an often overlooked sector in assessing the economic viability of a nation  (manufacturing and productivity issues surrounding the manufacturing process have usually been given priority in consideration), has now attained international visibility.  Driven by communications technology that permits the instantaneous exchange of information and new free-market economies, consumer demand is up across the entire globe and much of that demand is for American goods.  As stated by Deloitte &Touche, LLP in a special report for Stores magazine, Worldwide, economic development has increased demand for Western goods, creating a homogenized global marketplace. (Stores, Section 3, January 1998).  American goods are to be found in American retail outlets throughout the world, and American brands retain high appeal across the globe.  It is no accident that, according to Deloitte & Touche,LLP, of the top 200 retailers in the world, American retailers occupy the top spot with 77 on the list of 200, or 39%.  Japan is a distant second with 14%.  Wal-Mart is the largest global retailer with Sears occupying the second spot.  In fact, Wal-Mart, according to Deloitte & Touche, made more in profits ($3.1 billion) than a third of the retailers were able to generate in sales.

Domestically, the overall employment rate has remained unusually high at 96% for most of 1998 and that bodes well for consumer spending and for retail sales.  At the heart of our economy are millions of daily transactions involving the buying and selling of goods and services.  Whenever you buy something, you participate in retail.  The intriguing converse of your participation is that as many as 100 people were required to make good or service available to you.  It is here, in the selling side that employment opportunities are better than ever.  While consumer spending fluctuates with other economic indicators (interest rates, employment, inflation, etc.), the purchasing of goods and services never disappear completely. Therefore even in difficult economic times, food, clothing and other necessities of life must be bought; and even in hard times, people in developed economies still will purchase luxury goods.  This truism generates the need for ever more sophisticated retailers.

Demographics

For years, the people who operated the retail businesses, the managers who supervised the inventory, managed the stores, did the buying of the goods you bought in the stores, and were in positions of authority in retailing, were not African Americans.  The level at which African Americans participated was mostly confined to the consumer side--in short, African Americans did a lot of the buying, but were almost invisible on the other side of the counter, with the  exception for the sales floor.  As a result, there is still the misconception that retailing involves only sales associates jobs and those jobs are the only jobs available to African Americans.  The reality is considerably different.  Not only are there many African Americans in decision-making positions in retailing, but there are now African-American markets as the demographics of our country change.  Moreover, African Americans are vocally claiming those positions in retailing where the authority, influence and the jobs with the large compensations packages are.  Demographics are the driving force.

There are approximately 30 million African Americans, constituting about 13% of the U.S. population.  As a demographic group, African Americans have a combined income of over $500 billion according to Black Enterprise, Countdown to the 21st Century," June 1998.  That figure represents a cash flow greater than a significant number of economies in the world.  The number of African Americans making above $50,000 per year is greater than it has ever been, and it continues to grow.  According to the Statistical Abstract of the United States, 1995 edition, between 1970 and 1993, the percentage of all African-American households who had incomes of over $75,000 increased from 1.9 to 6.6 percent and the number of households who could claim incomes greater than $50,000 increased during that same period from 8.8 percent of all African-American households to 11 percent.  Looked at in a different way,  African Americans make up 31% of those earning between $35,000 and $75,000 per year.  This means that a larger number of African Americans have more to spend, a fact that has been noted by the nation's top retailers as they compete to earn a share of the African-American dollar.  Marketers of products as diverse as automobiles to financial services have targeted African Americans, recognizing this population as a distinct group with tastes, needs and wants different from other groups.  In recent years, a number of special efforts have been made to attract the African-American consumer and the numbers tell us why.  It is expected that there will be over 61,000,000 African Americans by the year 2050; this represents an increase as a percentage of the total population, growing from approximately the current 13% of the population to about 15% of the United States' population and a 10% increase over 1993.  Perhaps more significantly, the ratio of males to females will remain as it is now, approximately 47% males to 53% females.  This is a significant statistic because females consume more retail goods and services than do males.  At birth, the ratio of males to females is about even, and that ratio remains the same until somewhere in the 25-44 age range, when the numbers began to favor females.  Females during those years are often at the peak of their income streams and it is during this period that most people get married, have children and buy homes. Consumer spending for household goods is an important indicator of the health of the retail sector and when these statistics are examined, it is found that spending for housing, household operations, and apparel and related services are highest during the period 25-44, closely followed by the next age range of 45-54 years of age.

Retailers are especially sensitive to the number of African-American females.  We, therefore, see the JCPenney company promoting its catalog, Influences, aimed at Black females, with similar efforts made by the Speigel Company with its own catalog, e-Style and Essence Magazine cooperating with Sears to publish a catalog of fashions targeted at the Black female.  The African-American woman has become a target for retailers because they represent a significant market for the things retailers want to sell.  The drive to capture this lucrative market means, among other things, that there is a demand for African Americans as employees because it is felt that African Americans understand this market.

Of equal importance to today's retailers are the age groups who will be in their peak spending ages in the not-too-distant future.  Children and young adults who are currently 5-17 years old will be 32-44 years of age by the year 2025.  This group is projected to represent about 15 million consumers--which is a very large market for retail goods and services.  The consumption of retail goods by young adults remains one of the strongest segments in retailing.  School needs and school gear constitute a market that does not diminish significantly from year to year.  By the time young people have become old enough to work, they do so (usually in retail) to be able to afford the things that their parents either can't or won't pay for.

Not to be forgotten in this discussion are the upper age ranges.  Americans are enjoying a longer life expectancy than ever before.  Modern medicine has helped us to live longer; this means that there is a larger population of people who are over 55 years of age.  The number of people at 55 and older has increased steadily over the last three decades.  For example, in 1995, it is estimated that there were nearly five million African Americans who were 55 and older.  It is projected that by 2025, a mere 30 years later, that number will be nearly 11 million.  Contrary to the picture that is usually painted, not all of these people will be on fixed incomes; increasing numbers of people have invested wisely and truly are in a position to enjoy their golden years. These figures also mean that our seniors will be consuming more health care and special living arrangements; more medicines sold by drug stores, more specially prepared foods, more delivery services; and because some of them will remain very active well into their later years, it also means they will also consume more special leisure activities.

Retail Strategies and Trends

Retail firms are increasingly sensitive to the changed demographics of African Americans as a segment of the U.S. population and are seeking to increase sales among this group.  Part of the strategy is to increase the number of African Americans working in retailing in positions other than the sales floor.  It is recognized that policy and marketing strategies are best developed by those who are most like the segment being targeted for increased sales; thus we see increased attempts by retailers to attract African Americans at all levels of employment.  Ralph Parkman, a regional personnel administrator for the JCPenney Company, puts the situation this way: We realize that we are selling to a very diverse market. This requires a diverse merchandise mix, and that in turn, leads to a diversity in the people we employ.   John Comford, director of Human Relations and Recruiting for Profitt's Inc., talks about the growth of retailing and the increased pressures to produce profits, and comments: Retail is, now more than ever, in need of great leadership at all levels.  Talented leaders do not join a firm unless they see other people who look like themselves.  We certainly realize this and strive to make sure our leaders are as diverse as our customers.  We want retail talent and we don't care about the color of the talent.

The Profitt Company for whom  Comford works is an example of a growing trend toward consolidation within the retail sector.  Recent years have seen a continued trend in the acquisition of one retail firm by another.  JCPenney acquired the Eckerd Drug Store Chain; TJX Companies, the parent company of T.J. Maxx Stores, acquired Marshalls; Dillard's acquired Mercantile Stores, which includes Gayfers and Maison Blanche; Albertson's Supermarkets acquired American Stores, Inc. which includes Jewel Foodstores; Profitt's Inc., owner of the Parisian Stores, recently acquired Carson Pirie Scott and most recently, acquired Saks Fifth Avenue Stores.  Retail, always the heartbeat of the American economy, is now also big business.

Whatever the perception of retailing may be among college students, it is a closely watched indicator of the health of the nation's economy by Wall Street investors.  The nation's top 10 retailers for 1997 (in order of sales and profit volume) according to Stores, July, 1998,  are: Wal-Mart, Sears, Kmart,  JCPenney, Dayton Hudson, Kroger, Home Depot, Safeway, Costco, and American Stores (now owned by Albertson's).  When viewed by retail category, the top five in each category (Stores, July, 1998) are: Apparel Chains: Limited, TJX (parent company of TJMaxx), The Gap, Woolworth (now Venator) and Intimate Brands; Department Stores are represented by: Sears, JCPenney, Federated, May Company, and Dillard's.  In the Discount Store category, the top five are: Wal-Mart, Kmart, Target, Meijer, and Fred Meyer; in the Home Improvement area, the top retailers are: Home Depot, Lowe's, Hechinger/Builders Square, Menard, and Payless Cashways.  Supermarkets, which constitute the largest single segment of the top 200 retailers in the world are led domestically (1997 figures) by: Kroger, Safeway, Albertsons, Winn Dixie, and Ahold USA.

Why Should African Americans Consider Retailing as a Viable Professional Opportunity?

In answer to that question, Greg Daniels, manager of Recruitment, Training and Development for the Kroger Company, offers this observation: Retailing offers a diverse number of opportunities to use a variety of skills and to develop managerial ability to its highest level.  If you are going to be a professional in retailing, you must be able to think strategically.  You must be aware of and able to use sophisticated technology, and you must be able to manage people and money.  I don't know of too many other environments which offer all of these opportunities to grow.   Shari Edwards, training manager for the Sears Logistics Group, emphasizes the environment: The retail environment is a great environment--there is never a dull moment--and there is always another opportunity to test your skills and there are plenty of opportunities to grow.  You work with people as diverse as our society.  I have held a number of positions with Sears, each requiring increased levels of sophistication and intellectual challenges and I know I have not reached my peak yet.   Donna Jones, a planner with the Burdines Stores, a division of Federated Stores, when asked the question of why should African Americans consider retailing, draws upon her own experience: Retail offers tremendous growth with competitive salaries, bonus potential and a wide range of career choices.  Planning, for example, is a fast developing specialty here at Federated Stores and within many other retail organizations.  As a planner, I analyze trends, develop strategies and take risks in order to maximize sales in a dynamic market.  It is an exciting and rewarding career with constant challenges.

Issues of concern for African-American college graduates are pay and hours. The perceptions held often stem from personal experiences when as a student, the individual worked  in small retail outlets in non-professional jobs.  Yet, contrary to the perceptions held, at the entry level positions with a college degree, pay rates are very competitive with many other industries and sectors.  Most retail jobs start at about $27,000, with a college degree (some are higher) with an increase occurring after completion of the training period.  Progress after that depends upon performance.  There are many positions within retailing which pay from a minimum of $50,000 to salaries above $100,000 and these are available to people who want to work for that kind of compensation--a fact that is true for any job one might take in any industry.  African Americans occupy many of those jobs in retailing.  Looking at the job titles occupied by African Americans in a small sample of retail firms, this writer found store managers, buyers, planners, district managers, general merchandise managers, senior vice presidents, regional personnel administrators, regional presidents, human resources managers, regional human resources managers, directors of diversity and vice presidents for diversity, and many more throughout the structure of a particular firm.  The most important feature of these positions however is that they all involve decision-making and provide very lucrative salaries.  Hours can be long, but seldom go above 55 hours per week, especially at the managerial levels.  These hours are consistent with all professional jobs and jobs in which a person is compensated for performance.

Entry-level jobs for the college graduates are mostly to be found with large retail chains and are classified as Management Trainee or Merchandise Analyst."  The first is the entry- level position for those going into department and store management and the latter is the beginning step for those going into the buying function.  The starting salaries in retailing can be deceptive because of the compensation structure of the retailing sector.  Starting salaries are often deceptive because one or two raises within the first year are not uncommon as the new entrant completes training which represent the first salary upgrade and a second increase at the completion of one year (if the training and anniversary dates are not identical).  Additionally, the increases that come with years on the job and performance are also tied to the profits of the store, therefore, the bonus for outstanding performance on an annual basis can be nearly as high as the salary figure.

People interviewed for this article see no special barriers for African Americans either at the entry level or in terms of promotions.  The key is always performance.  The retail manager must be similar to a physician, says Greg Daniels of Kroger. You develop skills and competencies in your job, but you must be able to respond to emergencies of any kind.  If you can do that, there is nothing to stop you.   Shari Edwards of Sears responded in this way, Barriers? I have not found barriers, but you must know what is out there and know what you want.  Retailing is a fast moving business. Unless you are alert, you can get overlooked, but that is true for everybody in the business.  I know that we are very aware of the size of the African-American market and we want the business.  So, we want and need more African Americans to help us realize our strategic goals.

Conclusions

The changing demographic patterns of the African-American population indicate that as a group, African Americans are growing in numbers at all ages, becoming better educated, are moving into the middle class in greater numbers and have been identified by retailers as a group whose needs and tastes are often different from those of other American demographic groups.  The number of African Americans as a percentage of the workforce has also increased.  All of this bodes well for the young African-American college graduate, especially for those who consider retailing as a career.  Retailing requires a deep understanding of those forces which persuade the purchase of one good versus another or the understanding of why one individual might buy a good at one place but another person might prefer to buy the same good from a different retailer.  African Americans know their own preferences and understand why one product line or service may be attractive to African Americans in general as opposed to some other product line or service.  Retailing also requires the ability to think strategically, to make decisions quickly, to manage money, to be adept at modern technology, and all the while to understand the needs and wants of customers.  It is certainly not an industry for those who want to draw a paycheck while doing as little as possible.  But it is an industry for those with vision, intelligence, and a strong work ethic.  It is an industry for those who want to rise quickly to positions of influence and authority.  It is also an industry for those who want to make lots of money.