McKinsey & Company assessed the needs of Black American consumers and how companies can satisfy those needs.
A survey of 25,000 Americans was conducted in the spring of 2021.
Key findings include:
— Black household spending has increased 5% annually over the past two decades.
— In comparison, the growth rate of combined spending by White households has been 3% over the past two decades.
— One-in-five Black households is situated in a food desert, with few grocery stores, restaurants, and farmer’s markets.
— Unspoken “supermarket redlining” in many Black communities means that food is more expensive, choices are limited, and healthy organic products are harder to come by.
— Since retailers perceive low-access locations as risky or unprofitable, being the first to populate relatively empty retail landscapes falls low on the list of priority investments.
— However, new grocery stores in food deserts could be as profitable as current stores, or even more profitable. One example includes a successful Whole Foods location in Midtown Detroit.