The general merchandising industry earned its first overall grade of "D" from the NAACP General Merchandising Industry 2003 Report Card, issued by the National Association for the Advancement of Colored People (NAACP) during a press conference on July 15th at the 94th Annual Convention in Miami. The grade of "D" means a poor rating. The survey reflects industry activity for 2002 and is designed to offer consumers comparison information to make better choices about where to spend their money in the industry. This year, eight out of 11 major national retail companies participated in the report card. They have revenues of at least $6 million and 40,000 employees. The survey reviewed diversity opportunities in employment, advertising and marketing, vendor relationships, community reinvestment and charitable giving.
NAACP President & CEO, Kweisi Mfume, said: "After reviewing the results of the NAACP General Merchandising Industry 2003 Report Card, it is obvious the time for change is now. African Americans are proven loyal customers and are reported to have spending power of more than $500 billion annually, yet this survey shows the top retail leaders are allocating far too few dollars in our communities. It is time to bring these inequities to light. The NAACP is committed to creating equal opportunity in all areas of the retail industry."
The surveyed companies were: Wal-Mart Stores, Incorporated, The Federated Department Store Company, JCPenny Company, Incorporated, Sears, Roebuck and Company, May Department Stores, Kmart Corporation, Saks Incorporated, Dillard's, Incorporated, Kohl's Department Store, Nordstrom, Incorporated and Target Corporation.
In the categories of employment, advertising and marketing, the industry received an overall grade of "D". In vendor relationships, the general merchandising industry fared even worse, with an overall score of "D-", and with only one company, Federated Department Stores, Incorporated, scoring higher than a "C-". In community reinvestment and charitable giving, the industry earned average grades of "D+", with two out of the 11 companies surveyed receiving a score higher than "C+". Kohl's Department Stores, Nordstrom Incorporated, and Target Corporation received failing grades. Five of the surveyed companies are using African American advertising agencies. Only one company received an overall grade of "A" for charitable giving: Wal-Mart Stores, Incorporated. The overall score for this category was "D+".
Mfume said: "Retailers should take heed to the trends found in the NAACP survey. Corporations who do not provide meaningful opportunities in the areas of hiring, promotion and procurement do not warrant or deserve consumer support."
This year, Wal-Mart Stores, Incorporated ranked first overall, with a grade of 2.63 (C+). The Federated Department Store Company, encompassing Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus, Macy's and Rich's, earned the second highest overall score of 2.32 (C).
Mfume said, "The results of the survey will be disseminated nationally to trade organizations, the national media and all 1700 NAACP Branches nationwide, as well as thousands of others who are members of our 40-plus co-sponsoring organizations."
NAACP GENERAL MERCHANDISING FINAL GRADES 2003
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