Sears by Kailen Nordhausen-Willcox

November 15, 2012 The Team: Jessica Willard Ashley Hoffer Whitney Hipwell Kailen Nordhausen Sunki Hong

CUSTOMER EXPERIENCE INITIATIVE MARKETING PLAN

November 15, 2012

CUSTOMER EXPERIENCE INITIATIVE MARKETING PLAN

The Team: Jessica Willard Ashley Hoffer Whitney Hipwell Kailen Nordhausen Sunki Hong

I. COMPANY DESCRIPTION Richard Warren Sears and Alvah C. Roebuck founded Sears Roebuck and Co. in 1893. The company began as a mail order catalog business that offered everything imaginable to its customers, including clothing, jewelry, appliances, tools, and sewing machines. The catalog grew to be more than 500 pages by the turn of the century when Sears and Roebuck decided to expand the business into a merchandising outlet. Their first retail store opened on February 2, 1925 in Chicago followed by more stores constructed in urban areas. Continued market expansion made Sears the largest retail store in the United States by 1980 (searsarchives.com). In 2005, Sears Roebuck and Co. and Kmart Holding Corporation

formed one of the largest retail mergers in the United States. At the time of the merger, Chairman of Sears and prominent hedge fund manager, Edward Lampert, was hailed as a genius and predicted to be the next Warren Buffet. The $12B merger created the 3rd largest retailer in the U.S. However, since the merger, the performance of Sears Holdings has been disappointing. The company has experienced declining sales since 2005 (cite) and in 2011 Sears Holdings dropped to the sixty-fifth position in the ranking of Fortune 500 companies (well behind its competitors Wal-Mart, Home Depot, Target, and Loweâ&#x20AC;&#x2122;s). Today, Sears Holdings is a broadline retailer, operating 2,172 fullline and 1,338 specialty retail

stores in the United States through Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co. (Sears). Sears Holdings also operates 500 fullline and specialty retail stores in Canada through Sears Canada Inc. (Sears Canada), a 95%owned subsidiary. Sears Holdings is the 10th largest retailer in the United States based on revenue and the 4th largest broad-line merchant behind Walmart, Costco Wholesale Corporation, and Target Corporation. (http:// www.reuters.com/finance/stocks/ companyProfile? rpc=66&symbol=SHLD.O) Yet all three divisions of Sears Holdings experienced a decline in overall market share between 4 and 8 percent in 2011 alone. In 2011 Sears Holdings aimed to

SEARS HOLDINGS November 15, 2012

regain market share lost to competitors by licensing its brand name products such as Craftsman and Diehard to retailers such as Costco and Ace Hardware.

II. BUSINESS MISSION Our mission is to grow our business by providing quality products and services at great value when and where our customers want them, and by building positive, lasting relationships with our customers. We plan to deliver this mission by attaining best in class productivity and efficiency, building our brands, reinventing the company continuously through technology and innovation, and providing a world class customer experience.

III. MARKETING OBJECTIVES

The marketing objective is to re-establish Sears as a leader in the retail industry by improving the customer experience and support, empowering employees to drive sales, and investing in store renovations. To accomplish this objective, Sears must reclaim customers lost due to company mismanagement by regaining their trust in the new Sears brand. Likewise, Sears must attract new customers by positioning itself as a competitive retailer in the marketplace, which offers an unparalleled shopping experience.

SEARS These postcards are of the Sears Roebuck & Co store on states st in chicago Ilincludes the holiday-decorated windows. Image provided by Chuckman Chicago Nostalgia

Essentially, the message from consumers to Sears was “we will shop there, but not at the prices you wish to charge as we won’t pay full price for substandard service and unwelcoming physical facilities.” Gary Balter, an analyst at Credit Suisse

Objective Metric: Increase overall customer satisfaction by 100% by the end of 2013 Objective Metric: Increase sales by 10% by the end of 2013

Objective Metric: Increase number of repeat customers by 25% by the end of 2013

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IV. SITUATION ANALYSIS

“We do not intend to sit idly by and have it be business as usual. We will make the difficult decisions required to position Sears Holdings for the future and we will not accept such poor performance without making substantial adjustments.”

Industry Analysis: Trends

Social media platforms have changed the way brands and their customers interact and have allowed likeminded shoppers to organize like never before. The top-down messaging of the past has been replaced by a twoway dialogue that has amplified the voice of the consumer and empowered them to demand a greater level of participation and sway. In order to keep pace, Sears must identify its most influential customers, make a commitment to listen and respond to what they have to say, and find ways to get them more deeply involved in delivering on their brand promise. Trend 1: Shopper as Affiliate- A means of using social media channels to empower customers to sell on behalf of brands.

Eddie Lampert (Chairman Sears Holdings)

want quality products for a low price. There is an opportunity for a price match program as well as honest price comparison, which builds trust between the consumer and the retailer.

Trend 6: Technology on the Sales Floor- This trend includes cashless Initiatives using near-field communications enabled mobile payment systems. Cash will be used less often because of digital Trend 3: payment options, such as PayPal and Co-Produced In-Store Product Offerings- Google Wallet. The customer decides what inventory will be in stores and what services will be offered based on customer reviews and Competitors opinions. Sears’ business is subject to highly Trend 4: competitive conditions. Sears competes Shopper Coaching- Customers are with a wide variety of retailers, including educated on their purchases and are other department stores, discounters, aided in making informed buying home improvement stores, consumer decisions. This trend empowers electronics dealers, auto service providers, consumers and employees, giving specialty retailers, wholesale clubs, as well employees a greater sense of community as many other retailers operating on a within their store. national, regional or local level. Online and catalog businesses, which handle Trend 5: similar lines of merchandise, also Consumer’s Access to Information compete with Sears. Walmart, Target, Allows for Real Time Price Comparisons Kohl’s, J.C. Penney, Macy’s, The Home of Comparable Products- Consumers Depot, Lowe’s, Best Buy and Amazon are Trend 2: Shopper Designed Deals- Shoppers determine the price they are willing to pay for goods and services.

some of the national retailers and businesses with which Sears competes. The Home Depot and Lowe’s are major competitors in relation to Sears’ home appliance business, which accounted for approximately 16% of the company’s 2011 and 2010 revenues and 15% of its 2009 revenue. Sears primarily competes with mall department stores, big box retailers and home centers.

Customer Profiles 1. A newly married couple; early 30s with no children and moving into their starter home 2. Middle aged couple (40s) with their youngest child six or older 3. Middle aged couple (50s) with an empty nest

SEARS HOLDINGS November 15, 2012

SWOT Analysis: Strengths Brand equity and recognition Strong retailer network Balanced brand mix Broad product offerings

Weaknesses Poor funding Low inventory turnover Run-down stores Weak marketing strategy

Opportunities Growth in private label products Increasing online sales Decentralizing of operations Company mergers

Threats Low consumer confidence Direct competitors and specialty stores Economic slowdown Labor costs

2011 During the holiday season sears closed countless stores across the country

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“Lorem Ipsum Dolor Set Ahmet In Condinmentum. Nullam Wisi Acru Suscpit Consectetuer viviamus Lorem Ipsum Dolor Set Ahmet. Lorem Ipsum Dolor Set Ahmet In Wisi Acru Suscpit Consectetuer viviamus.” Leo Praesen

V. MARKETING STRATEGY Target Market Strategy: Social Classes The target Sears customer comes from the middle and upper-middle social classes with an annual income ranging from $45,000 to $100,000.

Demographics The typical Sears customer is likely someone who has put down roots in their community. He or she is likely married with a family or is likely to start a family. The age range of potential customers is 30 to 55 and they can be either male or female. The target Sears customer lives in suburban cities and towns across the United States where they can visit Sears at their local mall. He or she is an informed consumer with a high school and/or college education. The Sears customer enjoys living the American lifestyle and is involved in his community – whether it is through church, sports teams, or local organizations.

Size of Target Market Based on data captured from US census records of metropolitan population and money income of households and families, the Sears target market is roughly 15% of total US population.

Target Market Wants and Needs The target Sears customer expects quality customer service and value for dollar. They enjoy spending time with their family and therefore expect convenience in their one-stop shopping experience. He or she does not appreciate games or gimmicks and expects honest, straight-forward dealings with sales people. The target Sears customers also expects to form serendipitous, trusting, and beneficial relationships with Sears employees. Because the Sears customer expects quality, they expect their shopping experience to reflect that- from knowledgeable sales staff to clean, organized stores.

FASHIONMONTHLY November 15, 2012

VI. MARKETING MIX Product: The Sears Customer Experience Initiative focuses on enhancing the customer’s in-store experience to the fullest potential. This initiative will be achieved in the following ways: first, by empowering and educating Sears employees to drive sales and establish meaningful relationships with customers; and second, by updating brick-and-mortar store locations. As a first step in ensuring employee motivation, Sears must develop a new Human Resources Employee Empowerment Program which will outline the objectives and expectations for employee interactions with customers. The Employee Empowerment Program will also offer incentives such as Sears store credit to top performing employees. This program will be modeled after the Nordstrom Customer Service Excellence program which is exclusively focused on generating customer satisfaction. The Employee Empowerment Program aims to validate employees across all ranks of the company by giving them a purpose and common goal to strive for: providing Sears customers with a world class shopping experience.

Advantages of Employee Empowerment:

Cost Savings Employees who perform their tasks on a daily basis have an intimate understanding of how their jobs are done. By empowering employees to determine their own work methods, Sears can benefit from the years of experience each employee has. By allowing employees to suggest and make procedural changes that make their jobs more efficient, Sears will benefit by saving money.

Morale Employees who are empowered in their jobs feel a stronger sense of responsibility concerning productivity. Putting employees in charge of their own results has a positive effect on morale. Empowered employees know that their ideas matter to the success of the company, so they tend to take a greater interest in creating a more efficient and profitable company. Higher morale means that employees take less scheduled time off and productivity increases. This all has a positive effect on the bottom line.

Management-Employee Relationship Employee empowerment can help strengthen the relationships between managers and employees. Managers are seen as coaches and professionals with a direct interest in the success of their employees as opposed to those that dictate policy and give commands. Managers learn to rely on empowered employees, and employees learn to use their managers as resources for getting jobs done.

Direct Accountability 6

Empowering employees to make their own decisions means that employees have direct accountability for their jobs. This is advantageous for companies, because instead of harnessing managers with the responsibility for all decisions, employees pick up some of the decision-making slack. Thus, it is easier to pinpoint the exact sources of issues. Companies can offer specific employees training and any other information needed to correct errors as opposed to spending time and money training entire departments Secondly, Sears must invest profits earned back into the company by transforming its old, run down store locations into fresh and inviting outlets for the modern shopper. In many instances, Sears mall locations were once free-standing stores erected many years before the malls which now surround them. This is the case at the Oglethorpe Mall location in Savannah, Georgia where we gathered primary research. This location is defined by sagging drop ceilings, dim lighting, and dingy shelving; 3 characteristics that drive away customers and turn off employees. By renovating stores like the Oglethorpe Mall location, the Sears Customer Experience Initiative not only aims to elevate the shopping experience, but also positively impacts the customer’s perceived brand value of Sears. Primary research conducted at the Sears Oglethorpe Mall location also indicates that by giving its stores a facelift, Sears will in turn empower its employees by giving them a sense of pride in their workplace.

Place: Our strategy is to implement the new Sears Customer Experience Initiative in the State Street Chicago, Illinois store location. We chose to implement this initiative in the Chicago area because it is a populous area and it is where Sears is headquartered. This store will serve as a testing ground for the Sears Customer Experience Initiative and the effectiveness of the strategy at this location will determine how we will further implement it. Additionally, an opportunity for increasing brand loyalty lies in a potential partnership with St. Jude Children’s Research Hospital. St. Jude Children's Research Hospital, founded in 1962, is a leading pediatric treatment and research facility focused on children's catastrophic diseases. It is located in Memphis, Tennessee. Sears has no strong relations with local or national charitable organizations. Some of the benefits of the proposed partnership are: Increasing brand loyalty Brand differentiation and strengthening brand image ‣ Creating company or product awareness and visibility ‣ Enhancing company's credibility and educating the public about products and services ‣ Driving retail traffic or sales through linked pages ‣ Highlighting community responsibility, or corporate social responsibility ‣ Building new and deeper community networks ‣ Recruiting, retaining and motivating employees ‣ ‣

FASHIONMONTHLY November 15, 2012

Promotion: To build awareness of the new Sears Customer Experience, we plan to utilize Sears’ website as well as its mobile application for advertising. While Sears has experienced steep declines in sales within its brick-andmortar stores, it has been successful in its ecommerce channels. Sears is the number 7 e-tailer in the United States by sales volume as indicated by InternetRetailer’s Top 500 List, and has the number 5 mobile app store in the world. These channels will be used to drive online traffic to stores to try out the new Sears in store experience, and will feature attractive images showing the new features of the updated Sears experience. While ecommerce is gaining ground, consumers still want to shop in store for the social experience. In fact, 24% of people go to a store first to check out item before purchasing online.

Price: There are two major pricing components to be considered with the implementation of the Sears Customer Experience Initiative. First, a new Human Resources training program with tools for training Sears employees on new customer experience concepts and expectations and second, the cost associated with remodeling stores.

VII. SUMMARY Based on the recent poor financial performance of Sears as discussed above, we feel it is clear that serious modifications are needed to revitalize Sears’ brand image. We are confident that the changes outlined above will not only boost Sear’s performance in the short term, but will also result in a redesigned brand image that will increase the probability of long term success. Furthermore, we are confident that Sears is financially capable of fully integrating these recommendations into its operating strategy. The implementation of the actions recommended in this report must begin immediately. Ultimately, they will result in a Sears Holdings Corporation that is more relevant to the modern consumer, financially stronger, and more likely to climb back to the top of the ranks as one of America’s most successful retailers.

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WORK CITED Contact Help. (2012). Sears. Retrieved October 31, 2012, from Contact help: www.contacthelp.com Customer Service Scoreboard. (2012). Sears vs Target: Customer Service Comparison. Retrieved November 2012, 2012, from Customer Service Scoreboard: www.customerservicescoreboard.com Express. (2012). Benefits Overview. Retrieved November 05, 2012, from Express: www.express.com Gallup polls (n.d). Retrieved October 30, 2012 from www.gallup.com Gap Inc. (n.d.). Gap Credit Cards. Retrieved November 5, 2012, from Gap Inc: www.gap.com http://hbr.org/1998/01/the-employee-customer-profit-chain-at-sears/ar/1 http://maaw.info/ArticleSummaries/ArtSumRucci,KirnQuinn98.htm http://sears-reviews.measuredup.com/1658/Reviews/Consumer-Review-5?start=0 https://www.facebook.com/campaign/landing.php? placement=pf&campaign_id=402047449186&extra_1=auto https://www.google.com/search?q=sears+customer +satisfaction&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client =firefox-a#hl=en&client=firefox-a&hs=O3F&rls=org.mozilla:en-US:official&q=sears+employee +satisfaction&revid= 644110372&sa=X&ei=c0O3Tv3YN42A2AWfsL3MDQ&ved=0CCoQ1QIoAw&bav=on. 2,or.r_gc.r_pw.,cf.osb&fp=c0bffce 148b2ddfa&biw=1276&bih=585 http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CD4QFjAA&url=http %3A%2F%2Fwww. keepem.com%2Fdoc_files%2Fclc_articl_on_productivity.pdf&ei=D3-3TpWDPZCtgfP04nAAw&usg=AFQjCNFrxnc VTaLCDEC-NrVqHpA-XJS_fQ&sig2=RWOenPNsJfOP3Uq6NwmTEQ http://www.hulu.com/about/advertising?src=footer http://www.mysears.com/topics/Customer-Satisfaction-is-a-Joke-At-Sears/posts http://www.prnewswire.com/news-releases/sears-builds-on-success-of-softer-side-advertising-campaignnew-creative-askscustomersto-take-another-look-76542702.html https://www.royalrobbins.com/t-about.aspx http://www.youtube.com/advertise/ iTunes. (2011). Sears2go. Retrieved November 4, 2012, from iTunes: www.itunes.apple.com JC penny (n.d). Retrieved November 2, 2012 from www.jcpenny.com Macys (n.d). Retrieved November 2, 2012 from www.macys.com Meetingmetrics.com/researchâ&#x20AC;Ś/whitepaper_cs_es_relationships.pdf Reseller Ratings. (2012, August 16). sears.com. Retrieved October 2011, 2011, from Reseller Ratings: www.resellerratings.com Sears (n.d). Retrieved November 1, 2012 from www.sears.com Sears Holdings Corporation (n.d). Retrieved November 1, 2012 from http://www.searsholdings.com/ invest/docs/SHC_2010_Form_ 10-K.PDF Target (n.d). Retrieved November 2, 2012 from www.target.com Walmart (n.d). Retrieved November 2, 2012 from www.walmart.com

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APPENDIX PERSONA â&#x20AC;&#x153;I want a quality courteous, shopping experiance and value for my dollar.â&#x20AC;?

Demographics: Age

Location

Education

Occupation

Salary

$$$

41 years old

Chicago, Il

Expenditures: $2,350 Gifts

$3,200

Work

$1,650

Entertainment

2,100 sq ft house

Married (thinking about kids)

$17,000

-Discusses Policy and Systems -Walks and utilizes public transit to work when the chance presents itself utilizes -Likes to brainstorm with others but is then secluded for the duration of the process

-Enjoys nature -Likes to read and write, occasionally cooks -Loves to learn by watching documentaries

Transportation

$14,093

$$$

$ 70,000

$22,550 Mobile/Devices

Food & Beverage

$$$

Marital Status

Activities:

Housing

Apparel/Fashion

Gov Employee

Home

Personal

Insurance/Healthcare

$5,000

$17,890

Shopping Habits: Current favorite store:

Department Stores

Time Spent (weekly): At Work

49 hr In Transit

May do research on the go, but prefers to shop in store

6.7 hr

Guest:

Husband & friends

Rest & Relaxation

4.2 hr

Channel:

Shopping (on & off line)

26 hr

Pet Peeve

Poor customer service

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APPENDIX

CYCLE OF SUCCESS

Low Customer Turnover

Repeat Emphasis on Customer Loyalty and Retention

Customer Loyalty Higher Profit Margins Broadened Job Designs

Lowered Turnover, High Service Quality

EMPLOYEE CYCLE Continuity in Relationship with Customer

Employee Satisfaction, Positive Service Attitude

Above Average Wages

Extensive Training Intensified Selection Effort High Customer Satisfaction

CUSTOMER CYCLE

Training and Empowerment of Frontline Personal to Control Quality

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APPENDIX

CYCLE OF MEDOCRITY Customers Trade Horror Stories Other Suppliers (if any) Seen as Equally Poor

Employees Spend Working Lives in Environment of Mediocrity No Incentive for Cooperative Relationship to Obtain Better Service

Narrow Design of Jobs

Employee Dissatisfaction (but canâ&#x20AC;&#x2122;t easily quit)

Training Emphasizes Learning Rules

EMPLOYEE CYCLE

Success Defined As Not Making Mistakes

Complaints Met by Indifference or Hostility

Resentment at Inflexibility and Lack of Employee Initiative; Complaints to Employees

Jobs are Boring and Repetitive; Employees Unresponsive

Wages and Benefits, Are Good; Job Security Is High Promotion and Pay Increases based on Longevity, Lack of Mistakes

CUSTOMER CYCLE Customer Dissatisfaction

Emphasis on Rules Rather than Pleasing Customers

Initiative is Discouraged

Service Not Focused on Customer Needs

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APPENDIX

CYCLE OF FAILURE

High Customer Turnover

Repeat Emphasis on Attracting New Customers Failure to Develop Customer Loyalty Low Profit Margins Narrow Design of Jobs to Accommodate low Skill Level

High Employee Turnover; Poor Service Quality Use of Technology to Control Quality Emphasis on Rules Rather than Service

EMPLOYEE CYCLE Employee Dissatisfaction; Poor Service Attitude

No Continuity in Relationship with Customer

Payment of Low Wages

Employees Become Bored

Minimization of Selection Effort Minimization of Training

Customer Dissatisfaction

Employees Canâ&#x20AC;&#x2122;t Respond to Customer Problems

CUSTOMER CYCLE

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APPENDIX

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APPENDIX

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APPENDIX

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APPENDIX

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APPENDIX

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APPENDIX

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APPENDIX

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APPENDIX

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APPENDIX Table 22. Metropolitan Statistical Areas With More Than 750,000 Persons in 2010—Population by Age: 2010 [In thousands (871 represents 871,000). As of April 1. Covers metropolitan statistical areas as defined by the U.S. Office of Management and Budget as of December 2009. All geographic boundaries are defined as of January 1, 2010. For definitions and components of all metropolitan and micropolitan areas, see Appendix II] Metropolitan statistical area Albany-Schenectady-Troy, NY . . . . . . . . . . . . . . Albuquerque, NM . . . . . . . . . . . . . . . . . . . . . . . . Allentown-Bethlehem-Easton, PA-NJ . . . . . . . . Atlanta-Sandy Springs-Marietta, GA . . . . . . . . . Austin-Round Rock-San Marcos, TX . . . . . . . . . Bakersfield-Delano, CA . . . . . . . . . . . . . . . . . . . Baltimore-Towson, MD . . . . . . . . . . . . . . . . . . . Baton Rouge, LA . . . . . . . . . . . . . . . . . . . . . . . . Birmingham-Hoover, AL . . . . . . . . . . . . . . . . . . Boston-Cambridge-Quincy, MA-NH . . . . . . . . . . Bridgeport-Stamford-Norwalk, CT . . . . . . . . . . . Buffalo-Niagara Falls, NY . . . . . . . . . . . . . . . . . Charlotte-Gastonia-Rock Hill, NC-SC . . . . . . . . Chicago-Joliet-Naperville, IL-IN-WI . . . . . . . . . . Cincinnati-Middletown, OH-KY-IN . . . . . . . . . . . Cleveland-Elyria-Mentor, OH . . . . . . . . . . . . . . . Columbia, SC . . . . . . . . . . . . . . . . . . . . . . . . . . Columbus, OH . . . . . . . . . . . . . . . . . . . . . . . . . . Dallas-Fort Worth-Arlington, TX. . . . . . . . . . . . . Dayton, OH . . . . . . . . . . . . . . . . . . . . . . . . . . . . Denver-Aurora-Broomfield, CO 1 . . . . . . . . . . . . Detroit-Warren-Livonia, MI. . . . . . . . . . . . . . . . . El Paso, TX . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fresno, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Grand Rapids-Wyoming, MI . . . . . . . . . . . . . . . Hartford-West Hartford-East Hartford, CT . . . . . Honolulu, HI . . . . . . . . . . . . . . . . . . . . . . . . . . . . Houston-Sugar Land-Baytown, TX . . . . . . . . . . Indianapolis-Carmel, IN . . . . . . . . . . . . . . . . . . . Jacksonville, FL . . . . . . . . . . . . . . . . . . . . . . . . . Kansas City, MO-KS . . . . . . . . . . . . . . . . . . . . . Las Vegas-Paradise, NV . . . . . . . . . . . . . . . . . . Los Angeles-Long Beach-Santa Ana, CA . . . . . Louisville/Jefferson County, KY-IN . . . . . . . . . . . McAllen-Edinburg-Mission, TX . . . . . . . . . . . . . Memphis, TN-MS-AR. . . . . . . . . . . . . . . . . . . . . Miami-Fort Lauderdale-Pompano Beach, FL. . . Milwaukee-Waukesha-West Allis, WI. . . . . . . . . Minneapolis-St. Paul-Bloomington, MN-WI . . . . Nashville-Davidson–Murfreesboro–Franklin, TN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . New Haven-Milford, CT . . . . . . . . . . . . . . . . . . . New Orleans-Metairie-Kenner, LA . . . . . . . . . . . New York-Northern New Jersey-Long Island, NY-NJ-PA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oklahoma City, OK . . . . . . . . . . . . . . . . . . . . . . Omaha-Council Bluffs, NE-IA . . . . . . . . . . . . . . Orlando-Kissimmee-Sanford, FL . . . . . . . . . . . Oxnard-Thousand Oaks-Ventura, CA . . . . . . . . Philadelphia-Camden-Wilmington, PA-NJ-DE-MD . . . . . . . . . . . . . . . . . . . . . . . . . Phoenix-Mesa-Glendale, AZ . . . . . . . . . . . . . . . Pittsburgh, PA . . . . . . . . . . . . . . . . . . . . . . . . . . Portland-Vancouver-Hillsboro, OR-WA . . . . . . . Providence-New Bedford-Fall River, RI-MA . . . . Raleigh-Cary, NC. . . . . . . . . . . . . . . . . . . . . . . . Richmond, VA . . . . . . . . . . . . . . . . . . . . . . . . . . Riverside-San Bernardino-Ontario, CA . . . . . . . Rochester, NY . . . . . . . . . . . . . . . . . . . . . . . . . . Sacramento–Arden-Arcade–Roseville, CA . . . . St. Louis, MO-IL 2 . . . . . . . . . . . . . . . . . . . . . . . . Salt Lake City, UT . . . . . . . . . . . . . . . . . . . . . . . San Antonio-New Braunfels, TX . . . . . . . . . . . . San Diego-Carlsbad-San Marcos, CA . . . . . . . . San Francisco-Oakland-Fremont, CA . . . . . . . . San Jose-Sunnyvale-Santa Clara, CA. . . . . . . . Seattle-Tacoma-Bellevue, WA . . . . . . . . . . . . . . Tampa-St. Petersburg-Clearwater, FL . . . . . . . . Tucson, AZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tulsa, OK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Virginia Beach-Norfolk-Newport News, VA-NC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washington-Arlington-Alexandria, DC-VA-MD-WV . . . . . . . . . . . . . . . . . . . . . . . . Worcester, MA . . . . . . . . . . . . . . . . . . . . . . . . . .

Total 871 887 821 5,269 1,716 840 2,710 802 1,128 4,552 917 1,136 1,758 9,461 2,130 2,077 768 1,837 6,372 842 2,543 4,296 801 930 774 1,212 953 5,947 1,756 1,346 2,035 1,951 12,829 1,284 775 1,316 5,565 1,556 3,280

Number (1,000) Percent Percent Under 18 18 to 44 45 to 64 65 to 74 75 years under 18 65 years years years years years and over years and over 186 313 249 62 60 21.4 14.0 218 323 237 61 48 24.6 12.3 187 275 234 62 63 22.8 15.2 1,396 2,076 1,325 283 189 26.5 9.0 435 750 392 81 58 25.3 8.1 254 324 186 44 32 30.3 9.0 623 992 753 183 159 23.0 12.6 198 313 205 50 37 24.7 10.7 270 409 304 80 66 23.9 13.0 983 1,721 1,252 306 290 21.6 13.1 227 309 256 62 62 24.8 13.5 245 388 323 87 92 21.6 15.7 456 688 437 102 76 25.9 10.1 2,378 3,574 2,429 579 501 25.1 11.4 531 761 578 140 120 24.9 12.2 481 682 598 159 157 23.2 15.2 180 299 201 50 37 23.5 11.4 455 720 468 108 86 24.8 10.6 1,774 2,506 1,532 328 233 27.8 8.8 193 290 233 66 60 23.0 14.9 634 987 666 144 112 24.9 10.0 1,044 1,471 1,215 296 271 24.3 13.2 241 301 177 44 38 30.1 10.3 278 356 204 49 44 29.8 10.0 200 281 202 48 43 25.9 11.7 270 420 348 87 87 22.3 14.3 211 358 246 69 70 22.1 14.5 1,662 2,329 1,444 303 208 28.0 8.6 460 653 453 105 86 26.2 10.9 321 493 369 93 70 23.8 12.1 522 730 540 130 113 25.6 12.0 489 762 480 135 86 25.0 11.3 3,139 5,126 3,148 756 659 24.5 11.0 308 455 356 90 75 24.0 12.8 268 294 140 40 33 34.7 9.3 350 487 340 79 60 26.6 10.5 1,206 2,001 1,471 443 444 21.7 15.9 383 560 417 97 99 24.6 12.6 820 1,232 879 188 162 25.0 10.7

1,590 862 1,168

388 193 273

619 308 431

413 238 322

98 61 79

72 63 63

24.4 22.4 23.4

10.7 14.4 12.2

18,897 1,253 865 2,134 823

4,312 313 227 499 212

7,132 477 323 830 298

4,980 315 219 542 217

1,288 82 51 146 51

1,185 66 45 117 45

22.8 25.0 26.3 23.4 25.7

13.1 11.8 11.1 12.3 11.7

5,965 4,193 2,356 2,226 1,601 1,130 1,258 4,225 1,054 2,149 2,813 1,124 2,143 3,095 4,335 1,837 3,440 2,783 980 937

1,391 1,108 475 527 346 296 294 1,215 238 535 671 331 576 724 921 446 786 590 225 239

2,160 1,581 778 854 578 453 462 1,589 370 797 990 455 808 1,259 1,689 726 1,353 943 350 333

1,622 989 696 593 447 280 350 981 298 559 777 241 524 760 1,179 463 929 770 254 245

405 289 195 138 113 60 85 244 76 138 196 54 131 181 289 109 203 249 82 67

388 226 212 114 117 42 68 196 72 120 179 43 104 171 258 93 169 231 70 54

23.3 26.4 20.2 23.7 21.6 26.2 23.3 28.8 22.6 24.9 23.8 29.4 26.9 23.4 21.2 24.3 22.8 21.2 23.0 25.5

13.3 12.3 17.3 11.3 14.4 9.0 12.1 10.4 14.1 12.0 13.3 8.6 11.0 11.4 12.6 11.0 10.8 17.2 15.4 12.8

1,672

394

648

436

107

23.6

11.6

5,582 799

1,332 187

2,212 282

1,480 227

320 51

238 51

23.9 23.4

10.0 12.8

1 See footnote 1, Table 20. 2 The portion of Sullivan city in Crawford County, Missouri, is legally part of the St. Louis, MO-IL MSA. Data shown here do not include this area. Source: U.S. Census Bureau, USA Counties, <http://censtats.census.gov/usa/usa.shtml>, accessed June 2011.

30 Population

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APPENDIX Table 697. Money Income of Families—Median Income by Race and Hispanic Origin in Current and Constant (2009) Dollars: 1990 to 2009 [In dollars. See headnote, Table 696] Year 1990. . . . . . . . . . 1995 6 . . . . . . . . 2000 7, 8 . . . . . . . 2004 9, 10 . . . . . . . 2005. . . . . . . . . . 2006. . . . . . . . . . 2007. . . . . . . . . . 2008. . . . . . . . . . 2009 11 . . . . . . . .

All families 1 35,353 40,611 50,732 54,061 56,194 58,407 61,355 61,521 60,088

Median income in current dollars Asian, Pacific White 2 Black 3 Islander 4 36,915 21,423 42,246 42,646 25,970 46,356 53,029 33,676 62,617 56,723 35,148 65,420 59,317 35,464 68,957 61,280 38,269 74,612 64,427 40,143 77,133 65,000 39,879 73,578 62,545 38,409 75,027

Hispanic 5 23,431 24,570 34,442 35,440 37,867 40,000 40,566 40,466 39,730

Median income in constant (2009) dollars Asian, All Pacific Hisfamilies 1 White 2 Black 3 Islander 4 panic 5 56,243 58,728 34,082 67,210 37,277 56,755 59,598 36,293 64,783 34,337 63,189 66,050 41,945 77,993 42,899 61,389 64,411 39,912 74,287 40,244 61,741 65,172 38,965 75,764 41,605 62,135 65,191 40,712 79,374 42,553 63,471 66,649 41,527 79,793 41,965 61,288 64,753 39,728 73,299 40,312 60,088 62,545 38,409 75,027 39,730

1 Includes other races not shown separately. 2 Beginning with 2002, data represent White alone, which refers to people who reported White and did not report any other race category. 3 Beginning with 2002, data represent Black alone, which refers to people who reported Black and did not report any other race category. 4 Beginning with 2002, data represent Asian alone, which refers to people who reported Asian and did not report any other race category. 5 People of Hispanic origin may be any race. 6 Data reflect full implementation of the 1990 census-based sample design and metropolitan definitions, 7,000 household sample reduction, and revised race edits. 7 Implementation of Census 2000-based population controls. 8 Implementation of 28,000 household sample expansion. 9 See footnote 4, Table 696. See also comments on race in the text for Section 1. 10 Data have been revised to reflect a correction to the weights in the 2005 ASEC. 11 Median income is calculated using $2,500 income intervals. Beginning with 2009 income data, the Census Bureau expanded the upper income intervals used to calculate medians to $250,000 or more. Medians falling in the upper open-ended interval are plugged with “$250,000.” Before 2009, the upper open-ended interval was $100,000 and a plug of “$100,000” was used. Source: U.S. Census Bureau, Income, Poverty and Health Insurance Coverage in the United States: 2009, Current Population Reports, P60-238, and Historical Tables—Table F-05, September 2010. See also <http://www.census.gov/hhes/www/income /income.html> and <http://www.census.gov/hhes/www/income/data/historical/families/index.html>.

Table 698. Money Income of Families—Distribution by Family Characteristics and Income Level: 2009 [78,867 represents 78,867,000. See headnote, Table 696. Median income is calculated using $2,500 income intervals. Beginning with 2009 income data, the Census Bureau expanded the upper income intervals used to calculate medians to $250,000 or more. Medians falling in the upper open-ended interval are plugged with “$250,000.” Before 2009, the upper open-ended interval was $100,000 and a plug of “$100,000” was used. For composition of regions, see map inside front cover] Number of families (1,000) $15,000 $25,000 $35,000 $50,000 $75,000 Median Under to to to to to $100,000 income Total $15,000 $24,999 $34,999 $49,999 $74,999 $99,999 and over (dollars) All families . . . . . . . . . . . . . . . . . . . . 78,867 6,827 7,194 7,863 10,898 15,260 10,668 20,157 60,088 Age of householder: 15 to 24 years old . . . . . . . . . . . . . . . . 3,405 981 505 436 531 515 197 240 29,893 25 to 34 years old . . . . . . . . . . . . . . . . 13,102 1,791 1,436 1,415 1,867 2,658 1,659 2,275 50,312 35 to 44 years old . . . . . . . . . . . . . . . . 17,067 1,345 1,336 1,450 2,232 3,288 2,554 4,863 65,196 45 to 54 years old . . . . . . . . . . . . . . . . 18,176 1,087 1,103 1,208 2,024 3,567 2,895 6,291 75,707 55 to 64 years old . . . . . . . . . . . . . . . . 13,711 777 893 1,103 1,711 2,690 2,006 4,531 71,650 65 years old and over . . . . . . . . . . . . . 13,405 845 1,921 2,250 2,532 2,543 1,357 1,957 43,702 Region: Northeast . . . . . . . . . . . . . . . . . . . . . . . 14,125 1,046 1,080 1,312 1,759 2,564 1,909 4,454 66,977 Midwest . . . . . . . . . . . . . . . . . . . . . . . . 17,465 1,488 1,525 1,712 2,366 3,661 2,552 4,160 60,688 South . . . . . . . . . . . . . . . . . . . . . . . . . . 29,719 2,912 3,072 3,240 4,397 5,619 3,895 6,583 54,913 West. . . . . . . . . . . . . . . . . . . . . . . . . . . 17,558 1,380 1,517 1,600 2,375 3,418 2,311 4,956 62,229 Type of family: Married-couple families . . . . . . . . . . . . 58,428 2,339 3,761 4,964 7,546 12,018 9,182 18,617 71,627 Male householder, no spouse present 5,582 811 740 744 969 1,095 555 668 41,501 Female householder, no spouse present. . . . . . . . . . . . . . . . . . . . . . . . 14,857 3,677 2,691 2,154 2,383 2,149 931 870 29,770 Unrelated subfamilies . . . . . . . . . . . . . . 521 223 108 69 51 47 15 8 17,447 Educational attainment of householder: Persons 25 years old and over, total . . . . . . . . . . . . . . . . . . . . . . . . . 75,462 5,846 6,688 7,428 10,367 14,746 10,472 19,916 61,443 Less than 9th grade . . . . . . . . . . . . . . . . 3,323 707 787 567 502 454 167 140 27,114 9th to 12th grade (no diploma) . . . . . . . 5,513 1,118 1,058 935 932 824 392 255 31,119 High school graduate (includes equivalency) . . . . . . . . . . . . . . . . . . . . 22,054 1,994 2,532 2,866 3,897 4,869 2,794 3,102 48,637 Some college, no degree. . . . . . . . . . . . 13,502 1,031 1,185 1,373 2,092 3,009 2,025 2,786 58,258 Associate’s degree . . . . . . . . . . . . . . . . 7,413 422 487 621 1,060 1,697 1,286 1,840 65,248 Bachelor’s degree or more . . . . . . . . . . 23,657 573 639 1,065 1,881 3,894 3,810 11,795 99,707 Bachelor’s degree . . . . . . . . . . . . . . . . 14,956 437 490 784 1,379 2,750 2,475 6,641 90,530 Master’s degree . . . . . . . . . . . . . . . . . . 6,193 106 118 217 378 892 1,054 3,426 106,931 Professional degree . . . . . . . . . . . . . . . 1,265 18 12 50 60 133 119 875 150,795 Doctoral degree . . . . . . . . . . . . . . . . . . 1,244 12 19 14 63 118 160 855 135,681 Number of earners: No earners . . . . . . . . . . . . . . . . . . . . . . 12,205 3,410 2,498 2,167 1,871 1,355 461 445 25,740 One earner . . . . . . . . . . . . . . . . . . . . . 25,981 2,966 3,636 3,806 4,712 4,865 2,313 3,681 42,010 Two earners or more . . . . . . . . . . . . . . 40,680 451 1,059 1,890 4,315 9,039 7,897 16,029 85,299 Characteristic

Source: U.S. Census Bureau, Income, Poverty and Health Insurance Coverage in the United States: 2009, Current Population Reports, P60-238, and Detailed Tables—Table FINC-01, September 2010. See also <http://www.census.gov/hhes/www /cpstables/032010/faminc/new01_000.htm>.

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APPENDIX Table 692. Money Income of Households—Distribution by Income Level and Selected Characteristics: 2009 [117,538 represents 117,538,000. Households as of March of the following year. Based on Current Population Survey, Annual Social and Economic Supplement (ASEC); see text, this section and Section 1, and Appendix III. For definition of median, see Guide to Tabular Presentation. Median income is calculated using $2,500 income intervals. Beginning with 2009 income data, the Census Bureau expanded the upper income intervals used to calculate medians to $250,000 or more. Medians falling in the upper open-ended interval are plugged with “$250,000.” Before 2009, the upper open-ended interval was $100,000 and a plug of “$100,000” was used] Number of households (1,000) Characteristic Total . . . . . . . . . . . . . . . . . . Age of householder: 15 to 24 years . . . . . . . . . . . . 25 to 34 years . . . . . . . . . . . . 35 to 44 years . . . . . . . . . . . . 45 to 54 years . . . . . . . . . . . . 55 to 64 years . . . . . . . . . . . . 65 years and over . . . . . . . . . Region: 1 Northeast . . . . . . . . . . . . . . . . Midwest . . . . . . . . . . . . . . . . . South . . . . . . . . . . . . . . . . . . . West. . . . . . . . . . . . . . . . . . . . Size of household: One person . . . . . . . . . . . . . . Two people. . . . . . . . . . . . . . . Three people . . . . . . . . . . . . . Four people . . . . . . . . . . . . . . Five people . . . . . . . . . . . . . . Six people . . . . . . . . . . . . . . . Seven or more people . . . . . . Type of household: Family household. . . . . . . . . . Married-couple. . . . . . . . . . . Male householder, spouse absent . . . . . . . . . . Female householder, spouse absent . . . . . . . . . . Nonfamily household . . . . . . . Male householder . . . . . . . . Female householder . . . . . . Educational attainment of householder: 2 Total . . . . . . . . . . . . . . . . . . Less than 9th grade . . . . . . . . . 9th to 12th grade (no diploma). . . . . . . . . . . . . . High school graduate. . . . . . . . Some college, no degree. . . . . Associate’s degree . . . . . . . . . Bachelor’s degree or more . . . Bachelor’s degree . . . . . . . . . Master’s degree . . . . . . . . . . . Professional degree . . . . . . . . Doctoral degree . . . . . . . . . . . Number of earners: No earners . . . . . . . . . . . . . . . One earner . . . . . . . . . . . . . . . Two earners and more . . . . . . Two earners . . . . . . . . . . . . . Three earners . . . . . . . . . . . . Four earners or more . . . . . . Work experience of householder: Total . . . . . . . . . . . . . . . . . . Worked . . . . . . . . . . . . . . . . . . Worked at full-time jobs . . . . 50 weeks or more . . . . . . . . 27 to 49 weeks . . . . . . . . . . 26 weeks or less . . . . . . . . . Worked at part-time jobs. . . . 50 weeks or more . . . . . . . . 27 to 49 weeks . . . . . . . . . . 26 weeks or less . . . . . . . . . Did not work . . . . . . . . . . . . . . Tenure: Owner occupied. . . . . . . . . . . Renter occupied . . . . . . . . . . Occupier paid no cash rent . .

$75,000 to $100,000 $99,999 and over 13,549 23,749

Median household income (dollars) 49,777

Total households 117,538

Under $15,000 15,329

$15,000 to $24,999 14,023

$25,000 to $34,999 13,003

$35,000 to $49,999 16,607

$50,000 to $74,999 21,280

6,233 19,257 21,519 24,871 20,387 25,270

1,532 2,216 1,866 2,528 2,435 4,751

1,035 2,060 1,805 1,985 1,916 5,222

882 2,295 1,963 1,970 2,001 3,892

1,054 3,011 2,983 3,054 2,688 3,817

956 4,115 4,239 4,733 3,649 3,586

351 2,432 3,133 3,516 2,482 1,632

422 3,130 5,526 7,083 5,215 2,371

30,733 50,199 61,083 64,235 56,973 31,354

21,479 26,390 43,611 26,058

2,733 3,273 6,235 3,086

2,244 3,326 5,657 2,796

2,264 3,056 5,038 2,644

2,807 3,767 6,476 3,557

3,699 5,044 7,730 4,804

2,486 3,183 4,813 3,066

5,246 4,742 7,660 6,104

53,073 48,877 45,615 53,833

31,399 39,487 18,638 16,122 7,367 2,784 1,740

8,716 3,293 1,511 1,030 483 189 108

6,358 4,206 1,509 1,006 520 246 177

4,478 4,583 1,695 1,251 615 242 137

4,553 6,168 2,571 1,788 922 378 230

4,053 8,078 3,622 3,197 1,408 568 353

1,509 5,016 2,840 2,433 1,096 398 257

1,733 8,145 4,892 5,418 2,323 765 479

26,080 53,676 62,472 73,071 69,680 62,745 64,667

78,833 58,410

6,031 2,313

6,968 3,743

7,795 4,943

10,881 7,515

15,633 12,011

10,983 9,204

20,544 18,680

61,265 71,830

5,580

584

651

713

951

1,246

634

799

48,084

14,843 38,705 18,263 20,442

3,133 9,298 3,462 5,835

2,574 7,054 2,766 4,288

2,138 5,208 2,483 2,724

2,414 5,726 2,959 2,766

2,376 5,646 3,053 2,594

1,143 2,567 1,535 1,033

1,063 3,206 2,002 1,201

32,597 30,444 36,611 25,269

111,305 5,091

13,796 1,753

12,988 1,131

12,120 733

15,555 599

20,322 520

13,197 190

23,327 164

50,971 21,635

8,356 32,770 19,938 10,531 34,618 22,134 9,000 1,746 1,738

2,383 4,844 2,293 862 1,662 1,232 336 51 43

1,703 5,036 2,374 1,040 1,702 1,252 349 65 36

1,275 4,508 2,337 1,100 2,168 1,610 425 90 42

1,183 5,462 3,213 1,534 3,563 2,554 780 111 118

1,046 6,151 4,041 2,262 6,304 4,321 1,573 207 201

455 3,290 2,471 1,606 5,184 3,345 1,446 172 221

313 3,482 3,210 2,125 14,034 7,817 4,094 1,051 1,076

25,604 39,647 48,413 56,789 82,722 75,518 91,660 123,784 120,873

26,172 43,712 47,654 38,302 7,023 2,330

9,911 4,825 591 554 35 2

6,178 6,397 1,446 1,320 104 23

3,784 6,725 2,494 2,255 213 27

2,989 8,321 5,297 4,614 594 88

2,059 8,374 10,847 9,139 1,377 330

609 3,733 9,207 7,274 1,519 414

638 5,336 17,772 13,147 3,180 1,445

19,514 41,133 82,165 78,473 93,835 116,673

117,538 78,888 65,214 54,135 6,520 4,558 13,674 7,618 2,836 3,220 38,650

15,329 4,583 2,379 1,043 503 834 2,203 912 473 821 10,746

14,023 6,498 4,533 3,128 743 662 1,965 1,058 449 458 7,524

13,003 7,614 5,921 4,580 765 577 1,694 1,003 342 349 5,388

16,607 11,384 9,514 7,790 1,003 721 1,871 1,073 358 440 5,223

21,280 16,522 14,249 12,072 1,387 791 2,273 1,326 483 465 4,756

13,549 11,458 10,115 8,845 821 450 1,342 805 251 287 2,092

23,749 20,828 18,503 16,681 1,301 524 2,325 1,444 481 401 2,921

49,777 62,508 66,777 71,246 53,397 38,762 41,914 46,053 40,961 34,395 26,590

78,779 37,080 1,679

6,170 8,628 531

7,462 6,291 271

7,522 5,266 215

10,585 5,797 225

15,190 5,856 233

10,981 2,469 98

20,870 2,775 105

61,588 31,463 26,199

For composition of regions, see map, inside front cover. 2 People 25 years old and over. Source: U.S. Census Bureau, Income, Poverty and Health Insurance Coverage in the United States: 2009, Current Population Reports, P60-238, and Detailed Tables—Table HINC-01, September 2010. See also <http://www.census.gov/hhes/www /cpstables/032010/hhinc/new01_000.htm>. 1

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APPENDIX PRIMARY RESEARCH SAVANNAH

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APPENDIX