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Study shows Black America spends a large portion of income on home improvements |
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Study shows Black America spends a large portion of income on home improvements
Aisha Jefferson
Atlanta newlyweds Anthony and Tanya Ellis stood in
the aisle of a local Home Depot as they contemplated which nails would
be ideal for repairing their kitchen chairs. The Ellis' say they find
they often make trips to Home Depot, whether for repairs around the
house or for building projects such as creating a dog house or speaker
boxes for their car. According to a recent study by Target Market News,
the Ellis' are not alone.
The report, titled The Buying Power of Black America ,
shows that in 2004 African American households spent $10.7 billion in
household furnishings and equipment. This amount accounts for more than
10% of their earned income. In comparison African Americans spent $53.8
billion on food and $22 billion on apparel products and services.
Retired contractor Barney Hart, also a shopper at Home Depot, believes
that many African Americans are doing more of their own home repairs
because hiring laborers can become costly. “Most people don't have the
money and those who have it don't want to put it out. What happens
consequently is that it makes you want to do it yourself,” says Hart.
Black households have traditionally spent more collectively on home
repair than white households collectively have, says Ken Smikle,
president of Target Market News, pointing out that the average African
American household will spend more on painting, plastering, and other
repairs than white households. Economic necessity and tradition are two
reasons Smikle gives for this trend. “For many black homeowners, [they]
are getting started as homeowners and they're trying to save money on
minor construction costs, and minor decorating projects, and
renovations projects,” he says. “It's more of a tradition of blacks
working on their own homes because many black households have folks
coming from the trade. It's a trend based on some historical things
that continue to be true about African Americans.”
Smikle says there tends to be a correlation between expenditures and
how the economy is going. “When the economy is tight, which is what
we're experiencing now, you'll see folks doing more that will relate to
their home environment; things that will give them more entertainment
value at home, give their homes more value,” Smikle says.
The change in expenditures African Americans are shelling out has not
gone unnoticed, and can prove competitive for marketers. The Home Depot
Inc. recently celebrated the grand opening of its 2,000th store, which
is located in a predominantly African American community in suburban
Atlanta. Jen King, spokeswoman for Home Depot, says the home
improvement store giant has a “very diverse customer base and a strong
growth strategy for [its] stores. We continue to develop new store
formats in both urban and rural markets,” King says of the world's
largest home improvement retailer.
Chris Ahearn spokeswoman for Lowe's, the world's second largest home
improvement retailer, says Lowe's consumer base primarily consists of
do-it-yourselfers (75 %), with commercial business contractors
comprising the remaining quarter.
The Buying Power of Black America report has been published
for the past 12 years and is based on an analysis of expenditures
reported by 3,000 black households for the Department of Commerce's
Consumer Expenditure Survey, according to Target Market News.
12/21/05
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