By Randy Tucker
The Cincinnati Enquirer

Robert Adams, a resident of downtown, talks about his shopping habits during a visit Monday to the Kenwood Towne Centre. (Gary Landers photo) | ZOOM |

By the year 2007, the spending power of America's ethnic minority groups will exceed $2 trillion, outpacing the growth in white consumer spending by more than 80 percent, according to the University of Georgia's Selig Center for Economic Growth.

The increased spending power of African-Americans, Asians and Hispanics, among others, has resulted in a significant sales boost for many Tristate retailers as well as spurring forecasts for favorable sales trends into the next decade.

At Kenwood Towne Center, for example, the average expenditure per visit of black shoppers is $109.88, compared to the average expenditure for whites of $85.27 - a clear indication that black Americans, like other minorities, are increasingly flexing their economic muscle.

The retailers who benefit most from an increasingly diverse group of consumers are those who actively market to minority communities, such as Cincinnati-based Federated Department Stores, one of the nation's largest department-store chains.

"In today's diverse world, ethnic marketing is not merely a nice thing to do, it's absolutely essential,'' said Jim Zimmerman, Federated's chairman and CEO. "Federated operates department stores in a multitude of ethnic environments, from California and Puerto Rico to Seattle and Atlanta, and each store in each market has to speak to its unique customer base.''

But to get the deepest penetration and the biggest gains from those consumer markets, retailers must also recognize the differences in tastes and sensibilities, experts say.

Robert Adams, a 34-year-old African-American businessman who lives in downtown Cincinnati, is a prime example.

"I probably visit the mall about once a quarter, and I usually spend a decent amount for me, about $500 or $600,'' Adams said while shopping at Kenwood for clothing accessories for his upcoming wedding.

"I'd probably spend more, but everything looks the same at a lot of the stores here. I grew up in New York, where there was bigger selection of contemporary clothing, and stores that catered to African-Americans.

"We're always looking to be different, and the dilemma in Cincinnati is finding something that's not mainstream.''

Melissa Johnson, 35, a department head at University Hospital, expressed similar concerns while shopping at the mall.

"It's hard to find something unique,'' she said.

That's because most retailers, regardless of their intentions, are still in the "stone ages of multicultural marketing,'' said Alison Stein Wellner, editor-at-large for American Demographics magazine.

"You see a lot of different races and ethnic groups in ads and commercials,'' she said. "But when you walk in the stores, you don't see a lot of ethnic merchandise. That varies by retailer, but too many retailers still fail to target essential consumer markets with their merchandise. If they don't keep up with the changing demographic, long term, they're not going to stay afloat.''

One factor in this economic success story for many minority groups and why they're so important to retailers has been the rapid rise in minority incomes, sparked by the past decade's booming economy and job growth.

Another reason for the increase in minority spending power, of course, is sheer population growth.

African-Americans, for example, account for about 13 percent of the population in America.

But the numbers increased from 1990 to 2001 by 17 percent, compared to 11.2 percent for the total population and 8.7 percent for whites alone, according to the U.S. Census Bureau.

The Hispanic population is growing at an even faster rate.

"There's a demographic earthquake that's erupting all around us, and it's just a matter of time before it comes to a mall near you,'' Wellner said.

E-mail rtucker@enquirer.com