Table of Contents
Executive Summary
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- Market overview
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- Figure 1: Retailers Hispanics shop at for center-of-the-store foods, indexed to all, November 2019
- Video summary – What Hispanics want and why
- The opportunities
- Focus on the basics
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- Figure 2: TURF analysis – Reasons for selecting in-store retailer used most often, November 2019
- Create habits
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- Figure 3: Store brands and name brands as reasons for Hispanics to choose their preferred retailers, by Hispanics’ need for shopping at one or multiple stores, November 2019
- Minimize online delivery fee
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- Figure 4: Select data points about Hispanics and ordering groceries online, November 2019
- What it means
The Market – What You Need to Know
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- Competitive pressure is hindering growth
- Hispanics want different things when shopping for groceries
- Overarching characteristics influence why Hispanics follow a different path
Market Size
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- No real growth in Hispanics’ expenditures on groceries
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- Figure 5: Hispanic household spending on groceries*, at current prices, 2014-19
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- Figure 6: Hispanic household spending on groceries*, at inflation-adjusted prices, 2014-19
Market Breakdown
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- Food and drink account for the majority of grocery sales
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- Figure 7: Share of Hispanic households’ spending on groceries* – by segment, indexed to all, 2019
- Figure 8: Hispanic household spending on groceries*, by segment, at current prices, 2017 and 2019
- Food and drink
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- Figure 9: Hispanic household spending on food and drink*, at current prices, 2014-19
- Figure 10: Hispanic household spending on food and drink*, at inflation-adjusted prices, 2014-19
- Household goods and cleaning products
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- Figure 11: Hispanic household spending on household goods and cleaning products*, at current prices, 2014-19
- Figure 12: Hispanic household spending on household goods and cleaning products*, at inflation-adjusted prices, 2014-19
- HBC products
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- Figure 13: Total US retail sales and forecast of HBC products*, at current prices, 2014-19
- Figure 14: Total US retail sales and forecast of HBC products*, at inflation-adjusted prices, 2014-19
Grocery Shopping Attitudinal Segments
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- There are four ways Hispanics approach grocery shopping
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- Figure 15: Hispanics’ grocery shopping attitudinal segments, November 2019
- Brand Seekers (29%)
- What Brand Seekers want
- Why
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- Figure 16: Hispanic Brand Seekers’ attitudes toward shopping for groceries, indexed to all, November 2019
- Who are they?
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- Figure 17: Profile of Brand Seekers, November 2019
- Value Seekers (25%)
- What Value Seekers want
- Why
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- Figure 18: Hispanic Value Seekers’ attitudes toward shopping for groceries, indexed to all, November 2019
- Who are they?
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- Figure 19: Profile of Value Seekers, November 2019
- Experience Seekers (17%)
- What Experience Seekers want
- Why
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- Figure 20: Hispanic Experience Seekers’ attitudes toward shopping for groceries, indexed to all, November 2019
- Who are they?
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- Figure 21: Profile of Experience Seekers, November 2019
- Efficiency Seekers (29%)
- What Efficiency Seekers want
- Why
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- Figure 22: Hispanic Efficiency Seekers’ attitudes toward shopping for groceries, indexed to all, November 2019
- Who are they?
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- Figure 23: Profile of Efficiency Seekers, November 2019
Market Factors
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- Larger household sizes makes grocery shopping more complex
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- Figure 24: Average number of people per household, by race and Hispanic origin, 2018
- Figure 25: Households with related children, by race and Hispanic origin of householder, 2018
- Hispanics’ lower median household prompts them to look for value
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- Figure 26: Median household income, by race and Hispanic origin of householder, 2018
- Figure 27: Household income distribution, by race and Hispanic origin of householder, 2018
- Hispanics are overrepresented in urban areas
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- Figure 28: Hispanics’ share of total population in urban, suburban and rural areas, 2016
- Strong labor market is not translating in higher Hispanic expenditures
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- Figure 29: Unemployment rate (seasonally adjusted), by Hispanic origin, January 2007-October 2019
- Figure 30: Median income of Hispanic households, in inflation-adjusted dollars, 2007-18
What’s Happening – What You Need to Know
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- Hispanics know which stores offer the best value
- Hispanics value convenience
- Hispanics are buying private label
- Ethnic aisles may not be the answer to drive more Hispanic traffic
What’s Happening
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- Price matters
- The majority of Hispanics know where to find the best prices
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- Figure 31: Hispanics’ likelihood of knowing which stores have the best prices, November 2019
- Why is it important to highlight lower prices?
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- Figure 32: Hispanics’ likelihood of knowing which stores have the best prices, by age, November 2019
- What are grocery retailers doing about it?
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- Figure 33: Aldi Facebook posts highlighting deals, October-December 2019
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- Figure 34: Walmart Facebook post highlighting grocery price drops, November-December 2019
- Convenience matters
- Hispanics embrace self-checkouts
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- Figure 35: Hispanics’ likelihood of using self-checkouts, November 2019
- Why is it important to offer self-checkout?
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- Figure 36: Hispanics’ likelihood of using self-checkouts, by grocery shopping attitudinal segments, November 2019
- What are grocery retailers doing about it?
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- Figure 37: Sam’s Club Facebook posts highlighting easy checkout, November-December 2019
- Private labels
- Hispanics drive private label growth
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- Figure 38: Hispanics’ store brand perceived purchase change, indexed to all, November 2018
- Why is it important to invest in private label?
- What are grocery retailers doing about it?
What Needs Attention
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- Traditional supermarkets are not connecting with Hispanics
- The issue with ethnic aisles
- Hispanic foods become less relevant with acculturation
- Some supermarkets are creating their own versions of Hispanic grocery stores
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- Figure 39: Instagram posts from Fresco y Mas, November 2019
The Consumer – What You Need to Know
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- Hispanics don’t mirror average US consumers in store selection
- Four key factors drive Hispanic traffic
- Shopping at just one store would be possible, but unlikely
- Hispanics have a clear idea of what they want at the store
Center of the Store Retailers
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- Hispanics are a critical target for brands aiming to grow outside traditional channels
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- Figure 40: Retailers Hispanics shop at for center-of-the-store foods, indexed to all, November 2019
- Different retailers attract different segments of Hispanics
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- Figure 41: Retailers Hispanics shop at for center-of-the-store foods – any top three net, by attitudinal segments, November 2019
- The need to partner with mass merchandisers
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- Figure 42: Retailers Hispanics shop at for center-of-the-store foods – Mass merchandisers, by language spoken at home and household income, November 2019
- Warehouse clubs’ appeal is limited by household income
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- Figure 43: Retailers Hispanics shop at for center-of-the-store foods – Warehouse clubs, by language spoken at home and household income, November 2019
- The dollar store opportunity
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- Figure 44: Retailers Hispanics shop at for center-of-the-store foods – Dollar store – (top three net), by key demographics, November 2019
Factors Driving Retail Preferences
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- A combination of factors influence Hispanics’ shopping habits
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- Figure 45: Reasons Hispanics choose the retailers they use most often, indexed to all, November 2019
- TURF analysis – Key drivers
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- Figure 46: TURF Analysis – Reasons for selecting in-store retailer used most often, November 2019
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- Figure 47: Table – TURF Analysis – Reasons for selecting in-store retailer used most often, November 2019
- Different attitudinal segments have differing priorities
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- Figure 48: Reasons Hispanics choose the retailers they use most often, by attitudinal segments, November 2019
- Hispanics don’t mind going the distance for grocery shopping
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- Figure 49: Reasons Hispanics choose the retailers they use most often – Near my home, by age and living location, November 2019
- Store brands are more likely to appeal to Hispanic men
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- Figure 50: Reasons Hispanics choose the retailers they use most often – Store brands and name brands, by gender and age, November 2019
Grocery Shopping and Loyalty
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- Too many options hinder grocery stores’ loyalty
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- Figure 51: Hispanics’ need for shopping at one or multiple stores, November 2019
- Lower prices and habit drive loyalty
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- Figure 52: Select reasons Hispanics choose the retailers they use most often , by Hispanics’ need for shopping at one or multiple stores, November 2019
- Price comparison leads to shopping at multiple stores
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- Figure 53: Share of Hispanics who compare prices at different retailers, by Hispanics’ need for shopping at one or multiple stores, November 2019
- Store ads influence those who shop at multiple stores
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- Figure 54: Influence of store ads in Hispanics’ purchase decisions, by Hispanics’ need for shopping at one or multiple stores, November 2019
Grocery Shopping Behaviors
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- Hispanics grocery shopping trips more likely to be on autopilot
- Hispanics do not overthink CPG purchases
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- Figure 55: Hispanics’ in-store shopping behaviors – Checking expiration dates and reading product labels, indexed to all, November 2019
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- Figure 56: Hispanics’ in-store shopping behaviors – Checking expiration dates and reading product labels, by attitudinal segments, November 2019
- Spanish-dominant Hispanics are more likely to compare prices at different retailers
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- Figure 57: Hispanics’ in-store shopping behaviors – Price comparisons, indexed to all, November 2019
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- Figure 58: Hispanics in-store shopping behaviors – Price comparisons, by language spoken at home and household income, November 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- A note about acculturation
- TURF methodology
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