Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The insights
- Black households are estimated to spend $60.6 billion on groceries in 2017
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- Figure 1: Black household spending on groceries*, at current prices, 2012-17
- Walmart is the leading grocer among Black shoppers
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- Figure 2: Leading supermarkets and food stores Blacks shopped in the last 4 weeks, indexed to all, April 2016-May 2017
- Lower incidence of online grocery shopping may be tied to lack of service
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- Figure 3: Blacks’ shopping locations, indexed to all*, May 2017
- Blacks shop at multiple stores for price and product mix
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- Figure 4: Count of shopping locations, May 2017
- Young Black grocery shoppers expect the full experience
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- Figure 5: Grocery shopping desired improvements, by age, May 2017
- Coupon use may be low due to redemption restrictions and relevance
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- Figure 6: Household coupon use, by Black vs all, April 2016-May 2017
- The opportunities
- Communicate online grocery services directly to Black shoppers
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- Figure 7: TURF analysis – Desired grocery shopping improvements, May 2017
- Provide customized coupons and promotions based on shopper data
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- Figure 8: Desired grocery shopping improvements, May 2017
- Create events and promotions to increase shopping location frequency and loyalty
- What it means
The Market – What You Need to Know
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- Black household grocery expenditures expected to increase 2.3% in 2017
- Food and drink expenditures expected to rebound following 2016 decline
- Black households include more expanded family members and children
- Walmart is the primary store among Black grocery shoppers
- Supercenters are closing the access gap in food deserts
The Black Population by the Numbers
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- There are 43 million Blacks in the United States
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- Figure 9: Population by race, 2012-22
- There are 15.8 million Black households, 13% of the total
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- Figure 10: Number of households by race/Hispanic origin, 2016
- There are more children, but fewer adults in Black households
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- Figure 11: Average number of people per family household, by race/Hispanic origin, 2016
- Black households include fewer married couples, but more expanded family members
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- Figure 12: Family group by reference, 2016
- Black unemployment lowest in 17 years, but higher than the total US
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- Figure 13: Consumer confidence, total US and Black unemployment, 2000-July 2017
- More than half of Blacks have some post-secondary education
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- Figure 14: Educational attainment by race/Hispanic origin, 2016
- Black households earn less, but middle-income status on par with the average
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- Figure 15: Household income distribution by Black and total US, 2015
Market Size
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- Black household estimated grocery expenditures total $60.6 billion
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- Figure 16: Black household spending on groceries*, at current prices, 2012-17
Market Breakdown
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- Grocery expenditures increase 2-3% across all categories
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- Figure 17: Black household spending on groceries*, by segment, at current prices, 2012-17
- Food and drink expenditures expected to rebound from 2016 drop
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- Figure 18: Black household spending on food and drink*, at current prices, 2012-17
- Household goods expenditures continue to grow, but not at same 2016 rate
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- Figure 19: Black household spending on household goods*, at current prices, 2012-17
- Health and beauty care product expenditures steadily increase
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- Figure 20: Black household spending on HBC products*, at current prices, 2012-17
- Food and drink share falls, while households’ expenditure share increases
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- Figure 21: Share of Black household spending on groceries*, by segment, indexed to all, 2015 and 2017
Market Perspective
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- Walmart is the leading grocery shopping destination among Black shoppers
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- Figure 22: Walmart Black-targeted TV commercial, “Here’s to Bonding” | Celebrate Walmart, 2017
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- Figure 23: Leading supermarkets and food stores Blacks shopped in the last 4 weeks, indexed to all, April 2016-May 2017
- Black grocery shoppers are less likely to use loyalty cards or coupons
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- Figure 24: Shopper reward, loyalty, discount cards used within last four weeks, by Black vs all, April 2016-May 2017
- Figure 25: Household coupon use, by Black vs all, April 2016-May 2017
- Blacks reference of in-store communication varies from the general market
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- Figure 26: Grocery store shopping references, by Black vs all, indexed to all, April 2016-May 2017
Market Factors
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- More than one third of Black households receive nutrition assistance
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- Figure 27: Distribution of participating SNAP households by race/Hispanic origin of household head, 2015
- Black shoppers more likely to live in low income, low access grocery store areas
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- Figure 28: Percentage of US households living in LILA and non-LILA areas, by race/Hispanic origin, 2015
- LILA grocery store shoppers more likely to shop at supercenters
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- Figure 29: Percent of food dollars spent by LILA and non-LILA households, 2015
- Supercenter grocery store access has increased in low- and moderate-income areas
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- Figure 30: Number of stores, by store type and census tract income, 2010-15
- Blacks’ share of expenditures higher on meats and grains, lower on shelf stable products
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- Figure 31: Annual expenditure percentage on food at home, race/Hispanic origin, Q3 2015-Q2 2016
Key Players – What You Need to Know
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- Restricted delivery services may deter buying groceries online
- Government nutrition program partners with private farmers to expand shopper market
What’s Working?
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- Expansion of supercenters into underserved areas attracts shoppers
- Farmers’ market SNAP partnership extends value and expands access to fresh food for participants
What’s Struggling?
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- Online grocery doesn’t provide necessary sensorial experience for Black shoppers
- Grocery delivery excludes Black neighborhoods
What’s Trending?
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- Black-owned grocery stores filling in food deserts
- Grocery innovations geared toward discount shoppers
The Consumer – What You Need to Know
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- Walmart is Blacks’ favorite one-stop shopping destination
- Black women are the primary grocery shoppers, which increases once they marry
- Single Black men shop at more grocery stores vs women
- Older Blacks want convenience, younger Blacks seek the experience
- Blacks are less likely to shop online, but want more grocery ordering services
- Blacks are less likely to use coupons, perhaps due to lack of value
Grocery Shopping Responsibility
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- Two thirds of Black shoppers are solely responsible for their households’ grocery shopping
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- Figure 32: Black consumers’ grocery shopping responsibility, indexed to all, May 2017
- Black women are more likely to be the sole grocery shopper
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- Figure 33: Grocery shopping responsibility, by Black vs all, by gender, May 2017
- Single Blacks buy their own groceries, but responsibility shifts to women when they marry
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- Figure 34: Grocery shopping responsibility, by marital status, May 2017
Grocery Shopping Location and Frequency
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- Most Black shoppers buy groceries at supermarkets, but Walmart is a close second
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- Figure 35: Blacks’ shopping locations, indexed to all*, May 2017
- “Stock up” shopping dominates grocery store trips
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- Figure 36: Shopping location, by frequency, May 2017
- Most Blacks shop at 6-8 stores to fulfill their grocery list
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- Figure 37: Count of shopping locations, May 2017
- Married/partnered Black women drive up the average number of shopping locations
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- Figure 38: Count of shopping locations, by marital status and gender, May 2017
Factors Influencing Shopping Locations
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- Price, followed by store proximity is key in choosing where to shop
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- Figure 39: Factors influencing shopping location, May 2017
- Black shoppers aged 55+ expect a convenient and pleasant shopping experience
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- Figure 40: Factors influencing shopping location – Select items, by age, May 2017
- Upper-income Blacks prefer the best shopping experience; lower-income Blacks seek convenience
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- Figure 41: Factors influencing shopping location – Select items, by household income, May 2017
- Married Black women’s store experience combines convenience with preferred product selection
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- Figure 42: Factors influencing shopping location, by gender and marital status, May 2017
Grocery Categories Shopped by Store Type
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- Walmart offers one-stop shopping across category
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- Figure 43: Store types shopped, by category, May 2017
- Older Black women buy meal ingredients at supermarkets, younger Black men shop for pre-prepared foods
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- Figure 44: Supermarkets shopped – Select categories, by gender and age, May 2017
- Blacks with a high school diploma less likely to shop at supermarkets
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- Figure 45: Supermarkets shopped – Select categories, by educational attainment, May 2017
- Walmart is the preferred store among Black Southerners
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- Figure 46: Walmart shopped, by region, May 2017
- Black high school grads shop at Walmart across income
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- Figure 47: Walmart shopped – Select categories, by educational attainment, May 2017
- Upper-income Blacks more likely to shop at other mass retailers, but still prefer Walmart
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- Figure 48: Walmart and other mass merchandisers shopped – Select categories, by household income, May 2017
- Blacks aged 18-34 buy club store prepared foods, older Blacks shop for meal prep and household goods
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- Figure 49: Club stores shopped – Select categories, by age, May 2017
- Lower-income Blacks who shop at discount stores buy food for meal prep and household goods
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- Figure 50: Discount stores shopped – Select categories, by household income, May 2017
Blacks’ Grocery Shopping Attitudes and Behaviors
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- Grocery prices dictate where and when Blacks shop
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- Figure 51: Black consumers’ grocery shopping attitudes and behaviors, indexed to all, May 2017
- Black women are more concerned with grocery prices and products in comparison to Black men
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- Figure 52: Grocery shopping attitudes and behaviors, by gender, May 2017
- Grocery shopping is an experience for Blacks aged 18-34
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- Figure 53: Grocery shopping attitudes and behaviors, by age, May 2017
- Price rules among low-income Blacks, but upper-income Blacks most likely to bargain hunt
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- Figure 54: Grocery shopping attitudes and behaviors, by household income, May 2017
Blacks’ Grocery Shopping Desired Improvements
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- Product/brand savings and sampling top Black shoppers’ list of improvements
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- Figure 55: Grocery shopping desired improvements, indexed to all, May 2017
- Reducing risk and adding services would spur store visits
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- Figure 56: TURF analysis – Desired grocery shopping improvements, May 2017
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- Figure 57: Table – TURF analysis – Desired improvements, July 2017
- Black women more likely to want tailored promotions, services and convenience
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- Figure 58: Grocery shopping desired improvements, by gender, May 2017
- Blacks aged 55+ look for grocery savings, Blacks aged 18-34 want a shopping experience
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- Figure 59: Grocery shopping desired improvements, by age, May 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- TURF Methodology
Appendix – The Market
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- Figure 60: Black household spending on groceries*, at current prices, 2012-17
- Figure 61: Black household spending on groceries*, by segment, at current prices, 2012-17
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- Figure 62: Black household spending on groceries*, by segment, at current prices, indexed to general market, 2015 and 2017
- Figure 63: Black household spending on food and drink*, at current prices, 2012-17
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- Figure 64: Black household spending on household goods*, at current prices, 2012-17
- Figure 65: Black household spending on HBC products*, at current prices, 2012-17
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Appendix – The Consumer
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- Figure 66: Leading supermarkets and food stores shopped in the last 4 weeks, by Black vs all, April 2016- May 2017
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- Figure 67: Shopper reward, loyalty, discount cards used within last four weeks, by Black vs all, April 2016-May 2017
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- Figure 68: Household coupon use, by Black vs all, April 2016-May 2017
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- Figure 69: Grocery store shopping references, by Black vs all, April 2016-May 2017
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