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Hispanics and Shopping for Groceries - US - November 2015

Hispanics and Shopping for Groceries - US - November 2015

The majority of Hispanics are involved in grocery shopping for their households. Good prices, products they like, and convenient location are factors that influence where they shop. In this regard, there isn’t a single retailer type that meets all of Hispanics’ grocery shopping needs and therefore they visit multiple stores in a typical week. Hispanics know where to go to find the best value, and visit different types of stores based on what they need.

This report looks at the following areas:

Hispanics have a positive attitude toward shopping
Hispanics shop at multiple retailers
Price, product mix and location drive store selection


OVERVIEW
What you need to know
Definition
Hispanics spend $79.8 billion on groceries
Figure 1: Expenditures by Hispanic households on groceries* and fan chart forecast of market, at current prices, 2010-20
The issues
Figure 2: Hispanics’ shopping behaviors – Liking, June 2015
Figure 3: Hispanics’ frequency of shopping by location, June 2015
Figure 4: Factors influencing where Hispanics shop, June 2015
The opportunities
Figure 5: Correspondence analysis – Grocery shopping location, June 2015
Figure 6: Hispanics’ shopping behaviors – Finding Hispanic ingredients/foods, June 2015
Figure 7: Factors consumers refer to for finding and choosing items, by Hispanic origin, April 2014 – June 2015
What it means
THE MARKET
What you need to know
Market factors create fertile ground of Hispanics’ expenditures on groceries to grow
The majority of grocery expenditures go to food and drinks
A variety of market factors point to a positive outlook
Market size and forecast
Hispanics’ expenditures on groceries projected to grow steadily
Figure 8: Expenditures by Hispanic households on groceries* and fan chart forecast of market, at current prices, 2010-20
Figure 9: Expenditures and forecast by Hispanic households on groceries*, at current prices, 2010-20
Market breakdown
Food and drinks account for the majority of expenditures on groceries
Figure 10: Expenditures by Hispanic households on groceries*, by segment, 2015
Hispanics’ expenditures on food and drinks projected to grow steadily
Figure 11: Expenditures by Hispanic households on food and drink* and fan chart forecast of market, at current prices, 2010-20
Growth on Hispanics’ expenditures on general merchandise/household supplies to remain stable
Figure 12: Expenditures by Hispanic households on general merchandise**/household supplies* and fan chart forecast of market, at
current prices, 2010-20
Hispanics’ expenditures on HBC see modest growth at MULO retailers
Figure 13: Expenditures by Hispanic households on health and beauty care (HBC)* and fan chart forecast of market, at current prices,
2010-20
Market factors
Improving labor market for Hispanics has a positive impact on their confidence
Figure 14: Hispanic unemployment, January 2007- June 2015
Hispanics’ purchasing power projected to reach $1.7 trillion by 2019
Figure 15: Purchasing power, by race/Hispanic origin, 1990-2019
Hispanic market becoming more bicultural
Hispanics live in larger households
Figure 16: Average household size and average number of adults and children in households, by race and Hispanic origin, 2014
Hispanic households more likely to include children
Figure 17: Presence of children in household, by race and Hispanic origin, 2014
Being Hispanic and a Cooking Enthusiast often go hand-in-hand
KEY PLAYERS
What you need to know
If you have something to say, don’t hesitate to say it
It’s all about communicating…
What’s working?
It’s all about communicating – Savings opportunities
It’s all about communicating – How to get the most out of a visit
Figure 18: H-E-B: How to use coupons video, April 2015
It’s all about communicating – We get you
It’s all about communicating – We have you need/want
Figure 19: Walmart: En Walmart queremos ayudarte a hacer tu dia un poquito mejor (At Walmart, we want to help you make your day
a little better), October 2015
What’s important?
Stores need to understand mix of Hispanics in their areas
What’s next?
Grocery retailing is becoming increasingly competitive
THE CONSUMER
What you need to know
Hispanic women still more likely to be responsible for grocery shopping
Hispanics are shopping at multiple locations in a typical week
Hispanics associate different store types with different categories
Good, nice and cheap (Bueno, bonito y barato)
Hispanics have a clear understanding of where to go and what to get
Besides price, value is also important
All for buying fresh; it depends for buying in bulk and brand names
We the family
Effectiveness of on-site tactics depends on level of acculturation
Grocery shopping responsibility
Hispanic men do shop for groceries, but women still in charge
Figure 20: Grocery shopping responsibility among Hispanics, by gender and age, June 2015
Children change roles
Figure 21: Grocery shopping responsibility among Hispanics, by parental status and gender, June 2015
Frequency of shopping by location
Hispanics are shopping at multiple locations in a typical week
Figure 22: Hispanics’ frequency of shopping by location, June 2015
Not all Hispanics go to the same stores
Figure 23: Hispanics’ frequency of shopping by location, by level of acculturation, June 2015
Grocery shopping destinations
Hispanics associate Walmart with multiple categories
Figure 24: Correspondence analysis – Grocery shopping location, June 2015
Mass merchandisers expanding reach in food categories
Figure 25: Difference of Hispanics shopping at mass merchandisers minus Hispanics shopping at supermarkets, June 2015
Factors influencing shopping location
Product, price and place still top reasons
Figure 26: Factors influencing where Hispanics shop, June 2015
Less-acculturated Hispanics are less demanding
Figure 27: Selected factors influencing where Hispanics shop, by level of acculturation, June 2015
Grocery shopping planning
Based on what they need, Hispanics know where to go
Figure 28: Hispanics’ shopping behaviors – Knowing where to go, June 2015
Hispanic women more familiar with where to go
Figure 29: Hispanics’ shopping behaviors – Knowing where to go, by gender and age, June 2015
Grocery shopping becomes more specific with acculturation
Figure 30: Hispanics’ shopping behaviors – Knowing where to go, by gender and age, June 2015
Lists guide Hispanics at the store
Figure 31: Hispanics’ shopping behaviors – Use of lists, June 2015
Acculturated Hispanics more attached to a plan
Figure 32: Hispanics’ shopping behaviors – Use of lists, by level of acculturation, June 2015
Finding Hispanic ingredients/foods is no problem
Figure 33: Hispanics’ shopping behaviors – Finding Hispanic ingredients/foods, June 2015
It is harder to find Hispanic ingredients/foods for some countries
Figure 34: Hispanics’ shopping behaviors – Knowing where to go, by country of origin, June 2015
Grocery shopping appeal
Hispanics like or are indifferent toward grocery shopping
Figure 35: Hispanics’ shopping behaviors – Liking, June 2015
Grocery shopping is more appealing among Hispanic women
Figure 36: Hispanics’ shopping behaviors – Liking, by gender and age, June 2015
Unacculturated Hispanics find grocery shopping more enjoyable
Figure 37: Hispanics’ shopping behaviors – Liking, by level of acculturation, June 2015
Coupons and promotions – Yes, but with caveats
Figure 38: Hispanics’ shopping behaviors – Coupons and promotions, June 2015
Coupons and promotions loose appeal as household income increases
Figure 39: Hispanics’ shopping behaviors – Coupons and promotions, by household income, June 2015
In-store sampling effectiveness depends on many factors
Figure 40: Hispanics’ shopping behaviors – In-store sampling, June 2015
Receptiveness for in-store samples changes by acculturation
Figure 41: Hispanics’ shopping behaviors – In-store sampling, by level of acculturation June 2015
Considerations when deciding what to buy
Not all brands are created equal
Figure 42: Hispanics’ shopping behaviors – Brand names vs private label brands, June 2015
Private label brands more appealing among less-affluent Hispanics
Figure 43: Hispanics’ shopping behaviors – Brand names vs private label brands, by household income, June 2015
Fresh is important
Figure 44: Hispanics’ shopping behaviors – Fresh vs packaged foods, June 2015
Hispanic men more likely to make compromises regarding freshness
Figure 45: Hispanics’ shopping behaviors – Fresh vs packaged foods, by gender and age, June 2015
Buying in bulk saves money, but may not always be the right thing to do
Figure 46: Hispanics’ shopping behaviors – Buying in bulk, June 2015
Grocery shopping stake holders
What to buy is decided based on consensus
Figure 47: Hispanics’ grocery shopping stake holders – Me vs family, June 2015
Ask mom for it
Figure 48: Hispanics’ grocery shopping stake holders – Me vs family, by gender and age, June 2015
Like it or not, family participates
Figure 49: Hispanics’ grocery shopping stake holders – Alone vs with family, June 2015
Acculturated Hispanics prefer to shop alone
Figure 50: Hispanics’ grocery shopping stake holders – Alone vs with family, by level of acculturation, June 2015
There is no rule about giving in to requests from children
Figure 51: Hispanics’ grocery shopping stake holders – Children’s requests, June 2015
Marketing tactics for finding and choosing items
Hispanics less likely to respond to in-store tactics
Figure 52: Factors consumers refer to for finding and choosing items, by Hispanic origin, April 2014 – June 2015
On-site tactics more effective as Hispanics become more acculturated
Figure 53: Factors Hispanics refer to for finding and choosing items, by language spoken at home, April 2014 – June 2015
APPENDIX
Data sources and abbreviations
Data sources
Abbreviations and terms
A note on acculturation
Market
Figure 54: Expenditures by Hispanic households on groceries*, at inflation-adjusted prices, 2010-20
Figure 55: Expenditures by Hispanic households on food and drink*, at inflation-adjusted prices, 2010-20
Figure 56: Expenditures by Hispanic households on general merchandise/household supplies*, at inflation-adjusted prices, 2010-20
Figure 57: Expenditures by Hispanic households on health and beauty care products*, at inflation-adjusted prices, 2010-20
Consumer
Figure 58: Factors Hispanics refer to for finding and choosing items, by gender, April 2014 – June 2015
Figure 59: Factors Hispanics refer to for finding and choosing items, by age, April 2014 – June 2015
Figure 60: Factors Hispanics refer to for finding and choosing items, by household income, April 2014 – June 2015
US Multicultural Methodology
Consumer research
Trade research
Statistical Forecasting

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