The Hispanic Supermarket Consumer
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- Frank Gibson
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1 The Hispanic Supermarket Consumer April 2008 Funded by The Beef Checkoff
2 Latinos are the main source of growth for the grocery industry Latino households spend 46% more than the general population on groceries $133 per week vs. $91 per week, respectively Hispanics go to grocery stores a whopping 26 times a month Triple the average of the general population 2
3 Hispanics want low prices and responsive grocery stores 95% find low prices important Hispanics are willing to spend more time visiting stores to look for quality food Hispanics value a clean store, courteous employees and highquality fruits and vegetables Hispanics want grocery stores to recognize and respond to their cultural differences and needs 3
4 Hispanics use multiple store types every month 94% of Hispanics shop supermarkets 68% shop discount superstores 56% shop carnicerías (meat markets) At least half of Hispanics visit bodegas (corner stores) and panaderías (bakeries) 4
5 Acculturation level sharply influences store visitation/choices Acculturated Hispanic shoppers value convenience and efficiency Unacculturated Hispanic shoppers go to ethnic stores with Hispanic foods and products five times more often than acculturated Latinos 5
6 Unacculturated Hispanics visit ethnic stores more often Unacculturated Hispanics visit bodegas (62%), carnicerías (58%) and panaderías (54%) more frequently than acculturated Hispanics Unacculturated Hispanics spend more on groceries 6
7 Income drives store choice Hispanics with higher incomes ($50,000+) are more likely to shop at warehouse club stores Latinos with lower incomes tend to shop more at bodegas (60%) and carnicerías (41%) 7
8 Creating an appealing store environment is essential Hispanic elements are meaningful to Latino shoppers, especially among the less acculturated For many Latinos, creating a sense of kinship or connection to the store is critical Retailers can establish such an environment by cultivating a bilingual, culturally mindful staff, incorporating Hispanic elements and adopting a community oriented focus - Food Marketing Institute 8
9 Community involvement is key Consider community involvement of the retailer to be important when choosing where to shop Almost 75% of acculturated Hispanics 91% of unacculturated Hispanics Store active in local community is very or somewhat important 84% of all Hispanics 88% of unacculturated Hispanics 9
10 Importance of store activities to Hispanics Percent rating these elements Somewhat or Very Important Hispanic Elements All Hispanics Unacculturated Hispanics Acculturated Hispanics Bilingual Employees 88% 96% 68% Sells Hispanic Products 91% 94% 80% Bilingual Store Signs 84% 92% 62% Bilingual Packaging 82% 91% 55% Store active in local community 84% 88% 66% Carries imported products from Latin America 81% 84% 70% 10
11 Hispanic shopping habits show high price sensitivity Hispanics shop with saving money in mind Price and convenience are top reasons for choosing their primary store Unacculturated Hispanics take grocery shopping very seriously Check flyers, prepare shopping lists, set budgets and avoid impulse purchases for grocery trips Age and family size determine the amount spent on groceries Most Hispanics do their grocery shopping on weekends Saturday is the most popular shopping day for almost 40% 11
12 The fill-in trip is the favorite shopping trip of the Hispanic shopper 37% of Hispanic shopping trips are fill-in vs. 25% for the general population Hispanic shoppers fill in more often but spend less on each trip than general market shoppers ($32 vs. $49) Hispanic fill-in trips are likely to be for items used by the next day Children s needs drive many of these trips Source: Unilever, Winning the Hispanic Shopping Trip,
13 Latinos want one-stop shopping The primary stock-up shopper selects a store that meets a variety of household needs This shopper takes stock-up trips more frequently than general market shoppers (16% vs. 13%) Source: Unilever, Winning the Hispanic Shopping Trip,
14 Hispanics rarely buy ready-to-eat supermarket meals Only 14% of Hispanic shoppers purchase readyto-eat take out foods from a supermarket every time or fairly often Acculturated Hispanics purchase ready-to-eat foods almost twice as often 14
15 Advertising awareness influences Hispanics for grocery store selection Direct mail circulars and TV generate the highest recall among Hispanic consumers 74% of Hispanics indicate that supermarket advertising influences where they shop 69% of carnicería shoppers are influenced by advertising Advertising awareness for supermarkets is higher among acculturated Hispanic shoppers than unacculturated (77% vs. 64%) 15
16 Hispanics over-index in TV and radio consumption vs. general market Television 31 hrs/wk Index 142 Radio 25 hrs/wk Index 112 Newspapers 5 hrs/wk Index 85 Magazines 2 hrs/wk Index 90 Online 16 hrs/wk* Index 114 *2005 incidence of Internet use is 50% among Hispanics 16+. Sources: Strategy Research Corp. 2002; AOL/RoperASW Hispanic Cyberstudy, 2003 &
17 Language plays critical role in reaching unacculturated Hispanics Two-thirds of unacculturated Hispanics speak and read very little or no English 82% of acculturated Hispanics speak Spanish well or very well, with 40% of them speaking Spanish at home more than half the time Less acculturated Hispanics have higher recall rates for supermarket ads in Spanish (32% vs. 22%) Only 23% of unacculturated Latinos use English-language media 17
18 Coupon redemption among Hispanics is low About 25% of Latinos use coupons 56% of Hispanic consumers report they rarely or never use coupons Acculturated Hispanics use coupons more often than unacculturated Hispanics Spanish-dominant Latinos may not use coupons printed only in English 18
19 Thank you Funded by The Beef Checkoff
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