Funded by The Beef Checkoff

The Hispanic Supermarket

Consumer

The Hispanic Supermarket

Consumer

April 2008April 2008

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

Source: Food Marketing Institute, El Mercado 2005.

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 high-quality fruits and vegetables

• Hispanics want grocery stores to recognize and respond to their cultural differences and needs

Source: Food Marketing Institute, El Mercado 2005.

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)

Source: Food Marketing Institute, El Mercado 2005.

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

Source: Food Marketing Institute, El Mercado 2005.

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

Source: Food Marketing Institute, El Mercado 2005.

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%)

Source: Food Marketing Institute, El Mercado 2005.

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

Source: Food Marketing Institute, El Mercado 2005.

“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

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

Source: Food Marketing Institute, El Mercado 2005.

10

Importance of store activities to Hispanics

• Percent rating these elements “Somewhat” or “Very Important”

70%84%81%Carries imported products from Latin America

66%88%84%Store active in local community

55%91%82%Bilingual Packaging

62%92%84% Bilingual Store Signs

80%94%91%Sells Hispanic Products

68%96%88%Bilingual Employees

AcculturatedHispanics

UnacculturatedHispanics

All Hispanics Hispanic Elements

Source: Food Marketing Institute, El Mercado 2005.

11

Hispanic shopping habits show high price sensitivity

• Hispanics shop with saving money in mind

– Price and convenience are top reasons for choosing their primarystore

• 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%

Source: Food Marketing Institute, El Mercado 2005.

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, 2006.

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, 2006.

14

Hispanics rarely buy ready-to-eat supermarket meals

• Only 14% of Hispanic shoppers purchase ready-to-eat take out foods from a supermarket every time or fairly often

• Acculturated Hispanics purchase ready-to-eat foods almost twice as often

Source: Food Marketing Institute, El Mercado 2005.

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%)

Source: Food Marketing Institute, El Mercado 2005.

16*2005 incidence of Internet use is 50% among Hispanics 16+.Sources: Strategy Research Corp. 2002; AOL/RoperASW Hispanic Cyberstudy, 2003 & 2005.

Online16 hrs/wk*Index 114

Radio25 hrs/wkIndex 112

Television31 hrs/wkIndex 142

Magazines2 hrs/wkIndex 90

Newspapers5 hrs/wkIndex 85

Hispanics over-index in TV and radio consumption vs. general market

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

Source: Food Marketing Institute, El Mercado 2005.

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

Source: Food Marketing Institute, El Mercado 2005.

Funded by The Beef Checkoff

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