Dive Brief:
- Research by food and agriculture supplier Cargill shows that many Hispanic shoppers can’t find enough variety of meats at their local grocery store and end up shopping other channels to find what they need, according to Progressive Grocer.
- Cargill’s research shows that 73% of Hispanic consumers say they would shop a store that carries variety meats, while 76% say they would buy the rest of their groceries at that store.
- Hispanics have an estimated $1.7 trillion worth of purchasing power, and are nearing 20% of America’s total population.
Dive Insight:
The opportunity to reach Hispanic customers extends beyond the meat department to the entire store perimeter. Research shows Hispanic shoppers place a high value of fresh foods, including produce, deli and bakery items. According to Nielsen, Hispanics spend $175 more per year on fresh foods at traditional retailers than the average shopper.
Recent surveys also reveal that Hispanic shoppers are more digitally engaged than others. A study conducted by marketing firm Acosta in partnership with Univision found that 33% of Hispanics research new retailers online, compared to 22% of total U.S. shoppers. About 35% of Hispanic consumers regularly read digital circulars, versus 30% of total U.S. shoppers.
The demographic that flows right into some more key focus points for retailers. The Acosta/Univision poll also showed that Hispanic shoppers are more likely to utilize in-store coffee bars and cafeterias, and that they’re more likely to participate in store demos and cooking demonstrations.
Shopping is also more of an experience for Hispanic consumers. More than two-thirds of Hispanics say they enjoy grocery shopping, while 79% — nearly twice the percentage of total U.S. shoppers — say they shop with at least one other person.
Retailers in cities and throughout the Southwest and California have long catered to Hispanic shoppers. As this population increases, more service and outreach models are cropping up, including bilingual store tours, hybrid formats, bilingual dietitians and special events. Whole Foods’ bilingual store in El Paso represents a particularly modern, sophisticated appeal to Hispanic shoppers.
Retailers may be concerned about alienating their core shoppers by catering to Hispanic shoppers. But if the popularity of ethnic cuisine and the growing influence of Hispanic culture in America are any indication, everyone can get along just fine.
