Hispanics and the Retail Experience - US

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2009 - 112 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Sources

Consumer survey data

Advertising Creative

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

The Hispanic retail consumer

Couch to cash register analysis

Retail channels for groceries

Retail channels for non-food items

Drug store

Clothing (department, discount, children's toys, clothing and footwear stores)

Home electronics

Convenience store and Hispanic grocers

Bodegas

Understanding the consumer

Demographics

Acculturation

THE HISPANIC CONSUMER

HISPANICS’ FINANCIAL DATA

Hispanic purchasing power

Figure 1: Purchasing power, by race/ethnicity, 2008

Figure 2: Median household income, by race and Hispanic origin of householder, 2007

Figure 3: Household income distribution, by race and Hispanic origin of householder, 2007

Hispanic income levels

Figure 4: Largest Hispanic markets, by Hispanic disposable income, 2008

Hispanics’ economic growth

Hispanics in today’s economy

Figure 5: Hispanics now looking for deals/sales more than they did a year ago, by household income,

December 2008

Hispanics’ economic outlook

Figure 6: Hispanics who describe the U.S. as a land of opportunity, by household income, December 2008

Hispanics by household income

Figure 7: Hispanic attitudes towards personal finances, by household income, December 2008

Hispanics by age group

Figure 8: Hispanic attitudes towards personal finances, by age, December 2008

Hispanics by place of birth

Figure 9: Hispanic attitudes towards personal finances, by place of birth, December 2008

THE HISPANIC HOUSEHOLD

Figure 10: Average household size, by Hispanic origin/race of householder, 2001 and 2006

Figure 11: Households, by number of persons in the household—Hispanics versus non-Hispanics, 2006

Children in the household

Figure 12: Households, by presence of children—Hispanics versus non-Hispanics, 2006

Hispanic household earners

Figure 13: Number of household earners, by income level, December 2008

Income earners by language preference at home

Figure 14: Number of household earners, by language preference, December 2008

HISPANICS’ CATEGORY EXPENDITURES

Figure 15: Hispanic expenditures, by category, 2006-09

THE HISPANIC RETAIL CONSUMER

HISPANIC MINDSET

Figure 16: Attitudes towards shopping—Hispanics versus non-Hispanics, October 2007-December 2008

Figure 17: Attitudes towards shopping—Hispanics versus non-Hispanics, by gender, October 2007-December

2008

By language

Figure 18: Hispanic attitudes towards shopping and shopping behavior, by language spoken at home, October

2007-December 2008

A social shopper is born

Figure 19: Attitudes towards shopping—Hispanics versus non-Hispanics, October 2007-December 2008

Figure 20: Hispanic attitudes and behaviors about shopping with family and children, by language preference at

spoken at home, October 2007-December 2008

Marital status affects enjoyment of shopping with kids

Figure 21: Attitudes towards shopping with children—Hispanics versus non-Hispanics, by marital status,

October 2007-December 2008

Macho shopping

Figure 22: Attitudes towards shopping—Hispanics versus non-Hispanics, by gender, October 2007-December

2008

KEY MOTIVATIONS TO GO SHOPPING

Figure 23: Motivations to shop—Hispanics versus non-Hispanics, October 2007-December 2008

SELECTING WHERE TO GO SHOPPING

Figure 24: Motivators for where to shop—Hispanics versus non-Hispanics, October 2007-December 2008

COUPONS AS A TRAFFIC DRIVER

By language preference

Figure 25: Coupons as a foot traffic generator, by language preference spoken at home, October 2007-

December 2008

By education

Figure 26: Coupons as a foot traffic generator, by education levels, October 2007-December 2008

ATTRACTING THOSE WHO LIVE ALONE

Figure 27: Hispanic motivators for shopping, by household size, October 2007-December 2008

PRICE SENSITIVITY IN SELECTING RETAIL DESTINATIONS

Hispanics and non-Hispanics

Figure 28: Attitudes towards shopping—Hispanics versus non-Hispanics, October 2007-December 2008

By language preference

Figure 29: Hispanics attitudes towards price, by language preference spoken at home, October 2007-

December 2008

BILINGUAL RETAIL COMMUNICATORS

Figure 30: Store preference based on bilingual employees and signage, by Hispanic acculturation and non-

Hispanic, September 2007

GEOGRAPHIC CONSIDERATIONS

Figure 31: Hispanic distance tolerance, by acculturated Hispanic and non-Hispanics, September 2007

Figure 32: Hispanic distance tolerance, by store type, May 2009

Figure 33: Hispanic distance tolerance, by store type, May 2009

When location does not matter

Figure 34: Willingness to travel to favorite stores or outlet stores—Hispanics versus non-Hispanics, October

2007-December 2008

SHOPPING ON A BUDGET

Figure 35: Hispanics and non-Hispanics shopping on a budget, by level of acculturation, September 2007

IN-STORE SHOPPING BEHAVIORS

Hispanics and non-Hispanics

Figure 36: Attitudes towards shopping—Hispanics versus non-Hispanics, October 2007-December 2008

Race/Hispanic origin and gender

Figure 37: Shopping behavior in-store—Hispanics versus non-Hispanics, by gender, October 2007-December

2008

By language

Figure 38: Hispanic shopping behavior in-store, by language preference when reading, October 2007-

December 2008

By place of birth

Figure 39: Hispanic shopping behavior, by place of birth, October 2007-December 2008

GREEN SHOPPING

Figure 40: Shopping for environmentally friendly products—Hispanics versus non-Hispanics, October 2007-

December 2008

More acculturation means less green

Figure 41: Hispanic shopping for environmentally friendly products, by language preference spoken at home,

October 2007-December 2008

Figure 42: Hispanic shopping for environmentally friendly products, by place of birth, October 2007-December

2008

CHILDREN’S EFFECT ON SHOPPING

Figure 43: Effect of children on shopping—Hispanics versus non-Hispanics, October 2007-December 2008

By place of birth

Figure 44: Hispanic effect of children on shopping, by place of birth, October 2007-December 2008

By language

Figure 45: Hispanic effect of children on shopping, by language preference when watching television, October

2007-December 2008

RETAIL CHANNELS FOR GROCERIES

HOUSEHOLD GROCERY SPENDING

By race/Hispanic origin

Figure 46: Average spent on groceries per week, by race/Hispanic origin, October 2007-December 2008

By household income

Figure 47: Household grocery expenditure—Hispanics versus non-Hispanics, by income level, October 2007-

December 2008

By language preference

Figure 48: Hispanic average spent on groceries, by language preference when reading, October 2007-

December 2008

Hispanic attitude toward grocery shopping

Figure 49: Attitudes towards grocery shopping—Hispanics versus non-Hispanics, October 2007-

December 2008

Figure 50: Television ad for Publix Supermarket, May 2009

By language preference

Figure 51: Hispanic attitudes towards grocery shopping, by language preference spoken at home, October

2007-December 2008

CHANNEL ANALYSIS

The communal shopping cart

Figure 52: Hispanic and non-Hispanic spending on CPGs, by retail channel, August 2007

Figure 53: Hispanic spending on CPGs—Hispanics versus non-Hispanics, August 2007

More cha-ching at the register

Figure 54: Hispanic and non-Hispanic dollars spent per trip, by channel, August 2007

Figure 55: Dollars spent per trip—Hispanics versus non-Hispanics, by retail channel, August 2007

So what’s in the basket?

Figure 56: Top five categories in the Hispanic basket indexing >20% above non-Hispanic, by all outlets,

August 2007

Figure 57: Top five categories in the Hispanic basket indexing >20% above non-Hispanic, by all outlets,

August 2007

See you mañana, maybe…

Figure 58: Hispanic and non-Hispanic shopping trip frequency, by channel, August 2007

Figure 59: Shopping trip frequency—Hispanics versus non-Hispanics, by channel, August 2007

Supermercado de Walmart

Supermarket/food store usage

Usage by Hispanics and non-Hispanics

Figure 60: Usage of supermarkets—Hispanics versus non-Hispanics, October 2007-December 2008

Supermarket/food store usage by acculturation

Figure 61: Hispanic usage of supermarkets, by age and gender, October 2007-December 2008

Affluence reduces shopping at supermarkets

Figure 62: Usage of supermarkets—Hispanics versus non-Hispanics, by household income, October 2007-

December 2008

Figure 63: Hispanic usage of supermarkets, by household income, October 2007-December 2008

Figure 64: Non-Hispanic usage of supermarkets, by household income, October 2007-December 2008

Affluent exceptions

Figure 65: Hispanic usage of supermarkets, by household income, October 2007-December 2008

KEY TRAFFIC DRIVERS AND IN-STORE BEHAVIORS

Figure 66: Hispanic traffic driving shopping behaviors, May 2009

Figure 67: Hispanic traffic driving shopping behaviors, by language spoken at home, May 2009

What’s in the grocery channel basket?

Figure 68: Top five categories in grocery items in grocery Hispanic basket indexing >20% above non-Hispanic,

August 2007

Figure 69: Top five categories in grocery items in the grocery Hispanic basket, August 2007

In-store influencers

Signage by language

Figure 70: Signage language preference, by language spoken at home, May 2009

Signage by place of birth

Figure 71: Language preference for signage, by place of birth, May 2009

In-store shopper marketing

Figure 72: Effectiveness of various in-store shopper marketing mediums—Hispanics versus non-Hispanics,

October 2007-December 2008

Other services attracting Hispanics

Financial conveniences

Figure 73: Financial services used at supermarkets, by Hispanic rate of usage, May 2009

Financial conveniences by acculturation

Figure 74: Additional services used at supermarkets by Hispanics, by language preference, May 2009

RETAIL CHANNELS FOR NON-FOOD ITEMS

DRUG STORES

Which stores do consumers choose

Hispanics and non-Hispanics

Figure 75: Drug store usage—Hispanics versus non-Hispanics, October 2007-December 2008

What Hispanics are buying at drug stores

Figure 76: Top five categories in drug store Hispanic basket indexing >20% above non-Hispanic, August 2007

Figure 77: Top five categories in drug store Hispanic basket indexing >20% above non-Hispanic, August 2007

Attitude toward toiletries and cosmetic expenditures

By Hispanics and non-Hispanics

Figure 78: Attitudes towards toiletries and cosmetic expenditures—Hispanics versus non-Hispanics, October

2007-December 2008

CLOTHING RETAILERS

From shopping to purchasing

Figure 79: Clothing stores used—shopped last three months versus purchased last four weeks—Hispanics

versus non-Hispanics, October 2007-December 2008

Clothes shopping by acculturation

Figure 80: Hispanic clothing store usage—shopped last three months versus purchased last four weeks, by

language prefered to watch TV, October 2007-December 2008

In-store shopping behaviors by acculturation

Figure 81: Hispanic shopping behavior in-store, by language preference when watching television, October

2007-December 2008

Shopper marketing merchandising

Figure 82: Effectiveness of various in-store shopper marketing media—Hispanics versus non-Hispanics,

January 2009

RETAIL SHOPPING FOR THE HOME

Home electronics

From shopping to purchasing

Figure 83: Home electronic store usage—shopped last three months versus purchased last four weeks—

Hispanics versus non-Hispanics, October 2007-December 2008

Shopping and purchases by acculturation

Figure 84: Hispanic home electronic store usage—shopped last three months versus purchased last four

Hispanics and the Retail Experience

weeks, by language prefered when watching television, October 2007-December 2008

Purchased in a home electronics store last 4 weeks

Home improvement

From shopping to purchasing

Figure 85: Home improvement store usage—shopped last three months versus purchased last four weeks—

Hispanics versus non-Hispanics, October 2007-December 2008

Figure 86: Television ad for The Home Depot, May 2009

CONVENIENCE STORE AND HISPANIC GROCERS

Figure 87: Incidence of visiting convenience stores, by race/Hispanic origin, July 2007-September 2008

Preferences by race/Hispanic origin

Figure 88: Convenience stores shopped most frequently, by race/Hispanic origin, January 2009

Convenience stores and the Hispanic shopper

Figure 89: Products bought at convenience stores, by race/Hispanic origin, January 2009

Healthy snacks or junk food favorites

Figure 90: Food and drink items bought at convenience stores, by race/Hispanic origin, January 2009

An unexpected anomaly

Figure 91: Top five categories in convenience store Hispanic basket indexing >20% above non-Hispanic,

August 2007

Figure 92: Top five categories in convenience store Hispanic basket, August 2007

Race/Hispanic origin and age

Figure 93: Frequency of visiting convenience stores, by race/Hispanic origin and age, January 2009

What is being purchased and by whom

Figure 94: Products bought at convenience stores, by race/Hispanic origin and age, January 2009

Indicated areas of growth

Figure 95: Interest in products/services at convenience stores, by race/Hispanic origin and age, January 2009

In-store advertising

Figure 96: Effectiveness of various in-store shopper marketing mediums—Hispanics versus non-Hispanics,

January 2009

Bodegas/Tienditas

Advantages of a bodega

Figure 97: Hispanic preference for products from home country, by language preference spoken at home,

October 2007-December 2008

Figure 98: Phone cards used or would be used by Hispanics at grocery establishments, by language

preference, May 2009

Challenges

U.S. HISPANIC POPULATION

DEMOGRAPHIC DATA

U.S. Hispanic population

U.S. population by race/Hispanic origin

Figure 99: Population, by race/Hispanic origin, 1970-2020

Figure 100: Asian/Pacific Islander, Black, and Hispanic populations, 1940-2020

Figure 101: Population, by race and Hispanic origin, 2004-14

Age

The Hispanic and non-Hispanic population by age

Figure 102: U.S. Hispanic population, by age, 2004-14

Figure 103: Total U.S. population, by age, 2004-14

GENERATIONS

Hispanics by generation

Figure 104: Generations, by Hispanic origin, 2008

Figure 105: Fertility rate, by race and Hispanic origin of mother, 1996-2006

Country of origin/heritage

Figure 106: Hispanic population, by country of origin/heritage, 2007

Figure 107: Hispanics, by country of origin/heritage, 2007

GEOGRAPHIC LOCATION

Hispanics by geographic concentration

Figure 108: Hispanic population, by region and by country of origin/heritage, 2007

Figure 109: Hispanic population, by region and by country of origin/heritage, 2007

Figure 110: Hispanic population in top five states, by country of origin, 2006

States with greatest Hispanic population growth

Figure 111: Hispanic population greatest percentage increase, 2000-06

Key Hispanic metropolitan areas

Figure 112: Metropolitan areas with the largest number of Hispanic residents, by country of origin, 2006

ACCULTURATION

What is acculturation?

Why is level of acculturation important?

Unacculturated/Enculturated

Acculturated/Bicultural

Assimilated

Figure 113: Hispanics, by acculturation and assimilation level, 1998-2008

What is retro-acculturation?

Retro-acculturation

APPENDIX: EXPERIAN SIMMONS

Figure 114: Hispanic types of employment status, by age, October 2007-December 2008

Figure 115: Hispanics who describe the U.S. as a land of opportunity, by age, December 2008

Figure 116: Hispanic attitudes: “My financial situation will improve with this new President,” by age, December

2008

APPENDIX: TRADE ASSOCIATIONS

Abstract

They are young, they are many and quickly growing in numbers, they have money to spend and enjoy spending it. What’s not to love about the Hispanic consumer? Retailers and manufacturers cannot ignore the astounding growth of the Hispanic consumer market representing 15% of the U.S. population and a projected buying power of $1.2 trillion by 2012. This is as close to a domestic golden goose as it gets. But how does one tap into the famed loyalties Hispanics are known for?

Making a Hispanic consumer feel welcome is the first key. Retailers will find that a simple gesture of having a simple sign that says Bienvenidos (“welcome” in Spanish) can be a good step in the right direction to let Hispanic consumers know that they are being invited to shop in their store. Even English-dominant Hispanics will appreciate that people of their heritage are being welcomed into their store. Take that one step further by having bilingual staff and a few signs that explain offers in English and Spanish, and you may have a loyal customer for life, a loyal customer who readily uses word of mouth as a means to inform friends and family where they shop.

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