Table of Contents
Executive Summary
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- Market overview
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- Figure 1: Mass merchandisers Hispanics shop at – Past 12 months (in-store or online), November 2019
- Video summary
- Director of Hispanic Insights, Juan Ruiz, summarizes the top takeaways.
- Top takeaways
- The opportunities
- Make the shopping experience count
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- Figure 2: Hispanics’ attitudes toward mass merchandisers – Price and experience, November 2019
- Personalize promotions
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- Figure 3: Hispanics’ desired improvements – Personalized promotions and coupons, by gender and age, November 2019
- Stay on the overarching message
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- Figure 4: Share of Hispanics who shop at mass merchandisers – In-store vs online, November 2019
- What Hispanics want and why
The Market – What You Need to Know
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- Demographic factors highlight the potential
- Economic factors help explain Hispanics’ focus on value
- Hispanics are online
Market Perspective
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- Hispanics’ youth makes them a prime target for mass merchandisers
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- Figure 5: Hispanic share of total US population, by age, 2018
- Larger household sizes mean broader needs
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- Figure 6: Retailers Hispanic parents shop at for back-to-school, indexed to all, November 2018
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- Figure 7: Average number of people per household, by race and Hispanic origin, 2018
- Figure 8: Households with related children, by race and Hispanic origin of householder, 2018
Market Factors
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- Hispanics’ lower median household income prompts them to look for value
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- Figure 9: Median household income, by race and Hispanic origin of householder, 2018
- Figure 10: Household income distribution, by race and Hispanic origin of householder, 2018
- Strong labor market can prompt Hispanics to increase their discretionary expending
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- Figure 11: Unemployment rate (seasonally adjusted), by Hispanic origin, January 2007-November 2019
- Figure 12: Median income of all US households and Hispanic households, in inflation-adjusted dollars, 2007-18
- The digital divide is closed, opening the door to online shopping
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- Figure 13: Hispanic internet use, by age, April 2018-June 2019
Mass Merchandisers in Context – What You Need to Know
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- Figure 14: Mass merchandisers and Mintel Trend Drivers, January 2020
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What’s Happening
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- Trend Driver: Surroundings
- Mass merchandisers are getting closer to Hispanic consumers
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- Figure 15: Hispanics’ share of total population in urban, suburban and rural areas, 2016
- Trend Driver: Experiences
- Mass merchandisers are updating their brick and mortar stores
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- Figure 16: Target Facebook video post announcing a remodeled location, October-December 2019
- Trend Driver: Value
- Mass merchandisers see potential in store brands
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- Figure 17: Hispanics’ perception of quality in mass merchandisers’ store brands, November 2019
What’s Different
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- Trend Driver: Technology
- Hispanics are slow to incorporate technology in their shopping
- Apps are useful but need a boost in adoption
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- Figure 18: Past three-month incidence of shopping online, by Hispanic origin and household income, April 2018-June 2019
What’s Next
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- A focus on the individual…
- …via lifestyles
- Trend Drivers: Wellbeing, Rights
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- Figure 19: Walmart Facebook post promoting Wellness Day, December 2019-January 2020
- …via personalization
- Trend Driver: Identity
The Consumer – What You Need to Know
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- Walmart and Target define the segment
- Eight in 10 Hispanic shoppers have shopped online at mass merchandisers
- Price trumps convenience when shopping at mass merchandisers
- Hispanics associate Walmart and Target with different attributes
- Hispanics would like a more convenient checkout process
Mass Merchandisers Shopped
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- There is significant overlap in mass merchandisers’ visitation
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- Figure 20: Mass merchandisers Hispanics shop at – Past 12 months (in-store or online), November 2019
- Figure 21: Mass merchandisers Hispanics shop at – Overlaps in the past 12 months (in-store or online), November 2019
- The Hispanic Walmart shopper
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- Figure 22: Profile of Hispanics who shop at Walmart, November 2019
- The Hispanic Target shopper
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- Figure 23: Profile of Hispanics who shop at Target, November 2019
- The Hispanic Amazon shopper
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- Figure 24: Profile of Hispanics who shop at Amazon, November 2019
In-Store vs Online Shopping
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- Online is complementing, not replacing, in-store purchases
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- Figure 25: Share of Hispanics who shop at mass merchandisers – In-store vs online, November 2019
- Household income drives online purchases
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- Figure 26: Share of Hispanics who shop at Walmart and Target online, by household income, November 2019
- A lack of access to payment methods may hinder younger Hispanics from shopping online
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- Figure 27: Share of Hispanics who shop at Walmart and Target online, by age, November 2019
Attitudes toward Mass Merchandisers
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- Convenience is secondary to price but can help mass merchandisers stand out
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- Figure 28: Hispanics’ attitudes toward mass merchandisers, November 2019
- Older Hispanics focus mainly on price; younger also on experience
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- Figure 29: Hispanics’ attitudes toward mass merchandisers – Price and experience, by age, November 2019
- Larger families see the good in store brands
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- Figure 30: Hispanics’ attitudes toward mass merchandisers – Quality of store brands, by parental status and number of people living in the household, November 2019
- Younger Hispanic women are open to buying Hispanic products at mass merchandisers
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- Figure 31: Hispanics’ attitudes toward mass merchandisers – Hispanic products, by gender and age and level of acculturation, November 2019
Perceptions of Mass Merchandisers
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- Mass merchandisers compete in different lanes
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- Figure 32: Correspondence analysis – Symmetrical map – Perceptions of mass merchandisers, November 2019
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- Figure 33: Perceptions of mass merchandisers, November 2019
- Walmart’s appeal is higher among Spanish-dominant Hispanics
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- Figure 34: Perceptions of Walmart, by language spoken at home and household income, November 2019
- Target’s appeal is higher among affluent Hispanics
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- Figure 35: Perceptions of Target, by language spoken at home and household income, November 2019
- Target’s focus on experience can pay off in the long term
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- Figure 36: Perceptions of Walmart and Target, by gender and age, November 2019
Desired Improvements
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- Desired improvements revolve around efficiency and value
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- Figure 37: Hispanics’ desired improvements, November 2019
- TURF analysis – desired improvements
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- Figure 38: TURF Analysis – Desired improvements, November 2019
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- Figure 39: Table – TURF Analysis – Desired improvements, November 2019
- Shorter checkout lines can drive sales up
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- Figure 40: Hispanics’ desired improvements – Checkout lines, by number of people living in the household, November 2019
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- Figure 41: Hispanics’ preference to shop with their families, indexed to all, April 2018-June 2019
- Personalized promotions would make Hispanic women happy
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- Figure 42: Hispanics’ likelihood to shop at a favorite store due to price, by gender and age, April 2018-June 2019
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- Figure 43: Hispanics’ desired improvements – Personalized promotions and coupons, by gender and age, November 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- A note about acculturation
- Correspondence analysis methodology
- TURF methodology
Appendix – Consumer Data
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- Figure 44: Past three month incidence of shopping online, language spoken at home and household income, April 2018-June 2019
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