Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Hispanics make multiple weekly shopping trips
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- Figure 1: Hispanics’ frequency of shopping, by location, July 2017
- A crowded landscape
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- Figure 2: Correspondence analysis – Categories Hispanics shop, by channel, July 2017
- The opportunities
- Grocery retailers have control over main factors influencing where Hispanics shop for groceries
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- Figure 3: Top factors influencing Hispanics’ grocery shopping location, July 2017
- Reinforcing and breaking habits
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- Figure 4: Hispanics’ attitudes toward the grocery shopping experience, July 2017
- Private label and store brands are considered if certain conditions are met
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- Figure 5: Hispanics’ attitudes toward private label and coupons, July 2017
- Sticking to basics
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- Figure 6: Top desired innovations or improvements Hispanics want when grocery shopping, indexed to all, July 2017
- What it means
The Market – What You Need to Know
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- Hispanics’ expenditures on groceries are estimated at $83.8 billion
- Food and drink account for the biggest slice
- Cultural differences affecting the market include…
- Factors affecting the market include…
Market Size
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- Hispanics’ expenditures on groceries show restrained growth
- A note about rainy days
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- Figure 7: Hispanic household spending on groceries*, at current prices, 2012-17
Market Breakdown
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- The bulk of grocery expenditures are on food and drink
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- Figure 8: Share of Hispanic households’ spending on groceries, by segment, indexed to all, 2017
- Food and drink
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- Figure 9: Hispanic household spending on food and drink*, at current prices, 2012-17
- Household goods
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- Figure 10: Hispanic household spending on household goods*, at current prices, 2012-17
- HBC products
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- Figure 11: Hispanic household spending on HBC products*, at current prices, 2012-22
Market Perspective
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- Hispanics less likely to want to change their eating habits
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- Figure 12: Hispanics’ attitudes toward diet and health, indexed to all, April 2016-May 2017
- Need of fresh ingredients can drive the grocery shopping frequency up
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- Figure 13: Hispanics’ attitudes and opinions about food, indexed to all, April 2016-May 2017
- Store environment less likely to make a difference for Hispanic shoppers
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- Figure 14: Hispanics’ attitudes and opinions about shopping, indexed to all, April 2016-May 2017
- Pricing quality can be a challenge
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- Figure 15: Hispanics’ attitudes and opinions about shopping behavior, indexed to all, April 2016-May 2017
Market Factors
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- Larger families, more stuff
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- Figure 16: Average household size, by race and Hispanic origin, 2016
- Figure 17: Households with related children, by race and Hispanic origin of householder, 2016
- Lower median household income forces Hispanics to search for value
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- Figure 18: Median household income, by race and Hispanic origin of householder, 2015
- Figure 19: Household income distribution, by race and Hispanic origin of householder, 2015
- Improving labor market may inspire Hispanics to increase discretionary spending
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- Figure 20: Unemployment rate (seasonally adjusted), by Hispanic origin, January 2007-July 2017
Key Players – What You Need to Know
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- Connecting and standing out is the challenge
- Some changes may shake the market structure
What’s Happening?
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- E-mail still makes sense
- A focus on price
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- Figure 21: Jewel Osco red alert prices email, August 2017
- Making saving even more tangible
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- Figure 22: Walmart’s savings catcher email, September 2017
- Introducing new products
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- Figure 23: Target’s We picked some things just for you email, September 2017
- Providing inspiration
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- Figure 24: Publix’ Recipes inspired by the street cuisine experience – email, September 2017
- Being part of the community
- The cultural connection
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- Figure 25: Sedanos’ where is the sabor (flavor) mobile advertising, April 2017
What’s Next?
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- Amazon + Whole Foods
- Walmart + Uber
- Walmart + Google
The Consumer – What You Need to Know
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- Practically all Hispanics have some responsibility for purchasing groceries
- Hispanics visit a variety of store types
- The market for groceries is fragmented
- It’s all about price, location, and the right product mix
- Shopping habits are a blessing and a problem
- Private label of store brands need to prove their value
- Improvements should promote trial
Grocery Shopping Responsibility
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- The vast majority of Hispanics are involved in grocery shopping
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- Figure 26: Hispanics’ grocery shopping responsibility, July 2017
- Who takes sole responsibility?
- Are women in charge?
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- Figure 27: Demographic profile of Hispanics who are solely responsible for grocery shopping, July 2017
- Who shares responsibility?
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- Figure 28: Demographic profile of Hispanics who share responsibility for grocery shopping, July 2017
Shopping Location and Frequency
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- Hispanics shop for groceries in multiple places
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- Figure 29: Hispanics’ frequency of shopping, by location, July 2017
- The supermarket weekly shopper
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- Figure 30: The supermarket Hispanic shopper demographic profile – Once a week or more often, July 2017
- The Walmart weekly shopper
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- Figure 31: The Walmart Hispanic shopper demographic profile – Once a week or more often, July 2017
- The convenience store and local neighborhood store weekly shopper
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- Figure 32: The convenience store and local neighborhood store Hispanic shopper demographic profile – Once a week or more often, July 2017
- The mass merchandiser (other than Walmart) weekly shopper
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- Figure 33: The mass merchandiser (other than Walmart) Hispanic shopper demographic profile – Once a week or more often, July 2017
- Weekly shoppers at other store types
Categories Shopped By Channel
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- The market for groceries is fragmented
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- Figure 34: Correspondence Analysis – Categories Hispanics shop, by channel, July 2017
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- Figure 35: Categories Hispanics shop, by channel, July 2017
- Figure 36: Hispanics’ likelihood to refer to in-store initiatives when shopping, indexed to all, April 2016-May 2017
Factors Influencing Shopping Location
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- 3 P’s influence Hispanics’ grocery shopping location
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- Figure 37: Factors influencing Hispanics’ grocery shopping location, July 2017
- Other than price, it is location, location, location
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- Figure 38: TURF Analysis – Factors influencing shopping location – Excluding price, July 2017
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- Figure 39: Table – TURF Analysis – Factors influencing shopping location – Excluding price, July 2017
- Unacculturated Hispanics are more pragmatic grocery shoppers
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- Figure 40: Factors influencing Hispanics’ grocery shopping location, by level of acculturation, July 2017
- More affluent Hispanics more likely to look for convenience
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- Figure 41: Factors influencing Hispanics’ grocery shopping location, by household income, July 2017
Grocery Shopping Attitudes and Behaviors
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- Hispanics enjoy the grocery shopping process, itself
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- Figure 42: Hispanics’ attitudes toward the grocery shopping experience, July 2017
- Age limits flexibility
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- Figure 43: Hispanics’ attitudes toward the grocery shopping experience, by age, July 2017
- Acculturated Hispanics are more efficient when shopping for groceries
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- Figure 44: Hispanics’ attitudes toward the grocery shopping experience, by level of acculturation, July 2017
Private Label and Coupons
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- Hispanics open to private label, but…
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- Figure 45: Hispanics’ attitudes toward private label and coupons, July 2017
- Price elasticity may be greater among older Hispanics
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- Figure 46: Hispanics’ attitudes toward private label and coupons, by age, July 2017
- Less acculturated Hispanics are an opportunity to private label/store brands
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- Figure 47: Hispanics’ attitudes toward price private label and coupons, by level of acculturation, July 2017
Desired Improvements
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- Variety, sampling, value drive main desired innovations or improvements
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- Figure 48: Desired innovations or improvements Hispanics want when grocery shopping, indexed to all, July 2017
- The importance of focusing on the basics
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- Figure 49: TURF Analysis – Desired innovations or improvements Hispanics want when grocery shopping, July 2017
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- Figure 50: Table – TURF Analysis – Desired improvements, July 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
- TURF analysis methodology
- Correspondence analysis methodology
- A note on acculturation
Appendix – The Market
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- Figure 51: Hispanic household spending on groceries*, at inflation-adjusted prices, 2012-17
- Figure 52: Hispanic household spending and forecast spending on food and drink*, at inflation-adjusted prices, 2012-17
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- Figure 53: Hispanic household spending and forecast spending on household goods*, at inflation-adjusted prices, 2012-17
- Figure 54: Hispanic household spending and forecast spending on HBC products*, at inflation-adjusted prices, 2012-17
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