Conventional wisdom has long held that urban minority groups are forced to pay higher prices for everything from clothes to groceries. The logic is simple: Large chains with economies of scale generally aren’t in ethnic neighborhoods, and small mom-and-pop merchants have higher costs and little competition.
But a recently published study in the Journal of Retailing found that isn’t always the case.
More Top Picks Best Lighted Reading Glasses
A five-year study by California State University Northridge looked at the shopping behavior of 120 Chinese immigrants and 121 U.S.-born citizens. The surprising result: Indigenous shoppers were paying almost twice as much for fruit and vegetables at American stores and even more for meat and seafood.
Turns out that cultural differences made Chinese shoppers more willing to search for the best prices. And that frugal behavior motivates Chinese supermarkets to offer lower prices, concludes Gerard Tellis, a marketing professor at USC’s business school and one of the study’s authors.
Another interesting tidbit: Chinese women examined 7.4 pieces of produce before selecting one, compared with 1.4 pieces for American women.
“We found in interviews that they enjoy shopping more than Americans,” said David Ackerman, a marketing professor and another co-author. “Many Chinese customers look forward to shopping around for the best quality whereas many American just want to get in and get out.”
Few Americans shop at the Chinese stores, which means the price differences go unnoticed, the researchers conclude.
One possible lesson from this: Don’t be afraid to venture into Chicago’s Hispanic, Korean or Indian grocery stores. You might encounter a few new foods, and you might even save some money, too.
Online at last: Kohl’s Corp. doesn’t like to rush into things, whether it’s new markets or retail channels such as the Internet. And so far, that’s been a very successful strategy for the apparel and housewares chain from Menomonee Falls, Wis., which is slowly but surely expanding around the country.
Even amid a slowdown, Kohl’s posted a 35 percent increase in second-quarter earnings this week. That follows last week’s news that Kohl’s racked up a same-store sales gain of 13 percent in July, a month when its department store competition was mostly hurting.
Now Kohl’s has decided to take its winning strategy to the Web. The chain has launched Kohls.com in time for back-to-school shoppers. The site carries thousands of items in Kohl’s key categories, including casual apparel, shoes, and backpacks as well as small appliances and home accessories.
Kohls.com will feature the same advertised sale prices as those in the company’s 354 stores. And that’s good news for urban shoppers, who generally don’t have easy access to Kohl’s because of its strategy of locating stores in upper middle-class suburban areas.
Even better news for regular Kohl’s shoppers: Kohl’s will allow Internet purchases to be returned to their stores.
The Web site is turning out to be a big hit with former Midwesterners who moved out of Kohl’s territory, says Kohl’s spokeswoman Susan Henderson. “All of our snowbird friends who have moved to Arizona are calling and saying, `We can shop you again.'”
Kudos: Sears, Roebuck and Co. has been named to Latina Style Magazine’s list of the 50 companies providing the best opportunities for Hispanic women working in the United States.
Companies responding to the magazine’s survey were evaluated based on number of Latina executives and board members, availability of mentoring programs and child care, and alternative work policies and benefits. Latina Style also conducted confidential interviews with Hispanic women to gain personal insights into the companies being considered.
Sears and other winners will be recognized at an awards ceremony in Washington this fall. Other Chicago-area companies on the list include Allstate Corp., Bank One Corp., Kraft Foods Inc., McDonald’s Corp., and R.R. Donnelley & Sons Co.
———-
Contact schandler@tribune .com.