Table of Contents
Executive Summary
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- Market overview
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- Figure 1: Hispanics’ perimeter-of-the-store attitudinal segments, August 2019
- Video summary
- Top takeaways
- The opportunities
- Freshness is key, but cost has the deciding vote
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- Figure 2: Factors influencing purchases of perimeter-of-the-store categories, August 2019
- Relevant promotions benefit both brand and store
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- Figure 3: Factors Hispanics would like to see more of when shopping at the perimeter of the store, August 2019
- Leverage second-tier claims and affordability
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- Figure 4: Types of fruits and vegetables Hispanics consume, indexed to all, April 2018-June 2019
- What it means/what’s next
The Market – What You Need to Know
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- The perimeter of the store: Hispanics have always been there
- Key demographics influence how they shop the perimeter of the store
- Four distinct groups of Hispanics relate to the perimeter of the store differently
Market Perspective
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- The broader market sees growth for perimeter-of-the-store sales
- The Hispanic contribution
- In-store bakeries: sweet pastries
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- Figure 5: Hispanics’ purchases of boxed pastries from a supermarket – past three months, indexed to all, November 2018
- Fresh fruit and vegetables: the organic opportunity
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- Figure 6: Types of fruits and vegetables Hispanics consume, indexed to all, April 2018-June 2019
- Meat, fish and poultry: focus on core cuts for chicken and beef
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- Figure 7: Types of meat, fish and poultry Hispanics consume, indexed to all, April 2018-June 2019
Market Factors
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- Hispanics are overrepresented in urban areas
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- Figure 8: Hispanics’ share of total population in urban, suburban and rural areas, 2016
- Larger household sizes may prompt Hispanics to eat more at home
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- Figure 9: Average number of people per household, by race and Hispanic origin, 2017
- Figure 10: Households with related children, by race and Hispanic origin of householder, 2017
- Hispanics are value-oriented consumers
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- Figure 11: Median household income, by race and Hispanic origin of householder, 2017
- Figure 12: Household income distribution, by race and Hispanic origin of householder, 2017
Shopping the Perimeter-of-the-Store Attitudinal Segments
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- There are four types of Hispanic perimeter-of-store shoppers
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- Figure 13: Hispanics’ perimeter-of-the-store attitudinal segments, August 2019
- Prepared Food Embracers (32%)
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- Figure 14: Profile of Prepared Food Embracers, August 2019
- Perimeter Averse (23%)
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- Figure 15: Profile of Perimeter Averse, August 2019
- Perimeter Enthusiasts (23%)
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- Figure 16: Profile of Perimeter Enthusiasts, August 2019
- Perimeter Advocates (23%)
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- Figure 17: Profile of Perimeter Advocates, August 2019
Implications of Attitudinal Segments
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- Fresh foods are worth frequent trips to the store
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- Figure 18: Hispanics’ attitudes toward convenience in the perimeter of the store, by attitudinal segments, August 2019
- Picky eaters can hinder the excitement for exploring the perimeter of the store
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- Figure 19: Hispanics’ attitudes toward flexibility in the perimeter of the store, by attitudinal segments, August 2019
- Fresh produce is a grocery retailers’ business card
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- Figure 20: Hispanics’ attitudes toward quality in the perimeter of the store, by attitudinal segments, August 2019
- There is no middle-point with prepared foods
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- Figure 21: Hispanics’ attitudes toward prepared foods in the perimeter of the store, by attitudinal segments, August 2019
What’s Happening – What You Need to Know
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- Perimeter-of-the-store offerings need to reflect local communities
- Perimeter-of-the-store departments contribute to overall store positioning
- Coupons have limited power to promote trial
- Hispanics underindex for finding locally grown claims relevant
What’s Happening
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- Players differ by region
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- Figure 22: Northeast region – Supermarkets and food stores Hispanics shopped – past four weeks, indexed to all, April 2018-June 2019
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- Figure 23: Midwest region – Supermarkets and food stores Hispanics shopped – past four weeks, indexed to all, April 2018-June 2019
- Figure 24: South region – Supermarkets and food stores Hispanics shopped at – past four weeks, indexed to all, April 2018-June 2019
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- Figure 25: West region – Supermarkets and food stores Hispanics shopped at – past four weeks, indexed to all, April 2018-June 2019
- Perimeter-of-the-store offerings fit into a bigger picture
- Perimeter-of-the-store products are key to make or break new services
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- Figure 26: Walmart Facebook posts about grocery delivery and grocery pickup services, September – October 2019
- Figure 27: H-E-B Facebook posts about grocery delivery and grocery pickup services, July-September 2019
- Perimeter-of-the-store products can convey authenticity
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- Figure 28: Instagram post from Vallarta Supermarkets – Flavors from my land, October 2019
- Figure 29: Sedano’s Supermarkets Facebook post highlighting ingredients of traditional Puerto Rican dish, September 2019
- Perimeter-of-the-store foods communicate freshness, quality and value
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- Figure 30: ALDI USA Facebook posts about value, August-October 2019
What Needs Context
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- Coupons and their impact promoting trial
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- Figure 31: Hispanics’ coupon usage and reason to use, indexed to all, April 2018-June 2019
- Locally grown claims
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- Figure 32: Relevance of locally grown claims to Hispanics, by age, indexed to all, April 2018-June 2019
The Consumer – What You Need to Know
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- Hispanics not as keen for traditional supermarkets
- Freshness matters, but so do taste and cost
- In-store coupons and product sampling resonate with different types of users
- Hispanics need a push to increase their consumption of perimeter-of-the-store foods
Perimeter Retailers
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- Hispanics don’t agree on which stores they associate with fresh foods
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- Figure 33: Stores Hispanics associate with fresh foods, by level of acculturation, August 2018
- Traditional supermarkets face significant competition targeting Hispanics
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- Figure 34: Retailers Hispanics shop at for perimeter-of-the-store foods, indexed to all, August 2019
- Mass merchandisers to capture more everyday shoppers with smaller neighborhood stores
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- Figure 35: Hispanics shopping at mass supermarkets and merchandisers for perimeter-of-the-store foods, by urban/suburban/rural area, August 2019
- Hispanic grocery stores are a top destination among unacculturated Hispanics
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- Figure 36: Hispanics shopping at select retailers for perimeter-of-the-store foods, by level of acculturation, August 2019
Purchase Influencers by Perimeter Category
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- Freshness matters, but so do taste and cost
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- Figure 37: Factors influencing purchases of perimeter-of-the-store categories, August 2019
- Hispanics are receptive to “second-tier” factors
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- Figure 38: Factors influencing purchases of perimeter-of-the-store categories, indexed to all, August 2019
- Freshness: acculturated Hispanics may be pickier
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- Figure 39: Influence of freshness on Hispanics’ purchases of perimeter-of-the-store categories, by level of acculturation, August 2019
- Taste: with others in mind
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- Figure 40: Influence of taste on Hispanics’ purchases of perimeter-of-the-store categories, by gender and age, August 2019
Perimeter-of-the-Store Experience Enhancers
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- Hispanics want discounts and sampling opportunities
- In-store coupons help strengthen an existing connection
- Sampling can influence the store’s image
- Increasing variety and Hispanic flavors require a long-term approach
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- Figure 41: Factors Hispanics would like to see more of when shopping at the perimeter of the store, August 2019
- TURF analysis – Perimeter-of-the-store enhancers
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- Figure 42: TURF Analysis – Factors Hispanics would like to see more of when shopping at the perimeter of the-store, August 2019
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- Figure 43: Table – TURF Analysis – Factors Hispanics would like to see more of when shopping at the perimeter of the store, August 2019
- In-store coupons and product samples need to be relevant for the entire family
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- Figure 44: Select factors Hispanics would like to see more of when shopping at the perimeter of the store, by age and gender, August 2019
- Hispanic-related initiatives are niche, but offer potential
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- Figure 45: Select factors Hispanics would like to see more of when shopping at the perimeter of the store, by level of acculturation, August 2019
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- Figure 46: Factors Hispanics would like to see more of when shopping at the perimeter of the store, by household size, August 2019
Attitudes toward Perimeter-of-the-Store Foods
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- Hispanics’ healthy diet resolutions tend to remain aspirations – not achievements
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- Figure 47: Hispanics’ attitudes toward perimeter-of-the-store foods, August 2019
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- Figure 48: Hispanics’ attitudes toward perimeter-of-the-store foods, by attitudinal segments, August 2019
- Age drives Hispanics’ desire to eat healthier
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- Figure 49: Hispanics’ attitudes toward perimeter-of-the-store foods, by age, August 2019
- Fish and seafood’s appeal increases in household income
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- Figure 50: Hispanics’ attitudes toward consuming fish and seafood, by language spoken at home and household income, August 2019
Appendix – Data Sources and Abbreviations
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- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
- A note about acculturation
- TURF Methodology
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