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Black Consumers and Shopping for Groceries - US - November 2015

"Currently estimated at about $61 billion, Black expenditures on groceries (including food and drink, general merchandise, and health and beauty items) have been increasing since coming off the 2007-09 recession, though growth from 2012-15 has been moderate."

- Tonya Roberts, Multicultural Analyst

This report looks at the following areas:

  • Kids weigh in on what goes into the cart, but parents have the final say
  • Blacks are loyal to certain brands and stores; so what will it take to get others on their list?
  • Walmart is the top store Blacks shop, but it’s still not strongly associated with food
  • Blacks enjoy grocery shopping; they shop a variety of stores and often

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • In 2015, it’s estimated that Blacks will spend $61 billion on groceries
          • Figure 1: Expenditures of Black households on groceries* and fan chart forecast of market, at current prices, 2010-20
        • The issues
          • Kids weigh in on what goes into the cart, but parents have the final say
            • Figure 2: The role kids and family members play in grocery decisions, September 2015
          • Blacks are loyal to certain brands and stores; so what will it take to get others on their list?
            • Figure 3: Brand trust among Blacks – Net three for each statement, September 2015
          • Walmart is the top store Blacks shop, but it’s still not strongly associated with food
            • Figure 4: Correspondence analysis – Grocery shopping location and product category, September 2015
          • Blacks enjoy grocery shopping; they shop a variety of stores and often
            • Figure 5: Frequency of shopping grocery retailers – Once a month or more versus once a week or more, September 2015
          • The opportunities
            • Opportunity for smaller pop-up stores, fresh expansions
              • Engage Blacks; give them something to remember you by
                • Figure 6: Brand loyalty drivers, September 2015
              • Word of mouth is one thing; gifting favorite brands is another
                • Figure 7: Brand advocacy among Blacks, September 2015
              • Smart shopping tools, experiential displays and departments set retailers apart
                • Figure 8: Impact of in-store sampling on Blacks when shopping for groceries, September 2015
                • Figure 9: Impact of sales and buying in bulk for savings among Blacks when shopping for groceries, September 2015
              • What it means
              • The Market – What You Need to Know

                • Blacks spend $61 billion on groceries; food and drink make up the bulk
                  • Coupons, expansions, and sampling . . . Oh my!
                    • Things are looking up for Black consumers, retailers expected to benefit
                    • Market Size and Forecast

                      • Blacks spend $61 billion on groceries
                        • Figure 10: Expenditures by Black households on groceries* and fan chart forecast of market, at current prices, 2010-20
                      • Recession recovery and category changes made sales soar in 2011-12
                        • Figure 11: Expenditures and forecast by Black households on groceries*, at current prices, 2010-20
                    • Market Breakdown

                      • Food and drink segment represents 69% of sales in the category
                        • Figure 12: Expenditures by Black households on groceries*, by segment, at current prices, 2013 and 2015
                      • Food and drink segment has grown by 20% in the last five years
                        • Figure 13: Expenditures by Black households on food and drink* and fan chart forecast of segment, at current prices, 2010-20
                      • Tempered growth forecast for general merchandise, household supplies
                        • Figure 14: Expenditures by Black households on general merchandise* and fan chart forecast of segment, at current prices, 2010-20
                      • Health and beauty care products
                        • Figure 15: Expenditures by Black households on health and beauty* and fan chart forecast of segment, at current prices, 2010-20
                    • Market Perspective

                      • Coupon usage is up, digital credited
                        • Mass merchandisers gaining momentum, but at what sacrifice?
                          • Store brands can stake a claim, experiences are key
                          • Market Factors

                            • Greater number of Black households means more grocery carts
                              • Figure 16: Number of households in US, by race/Hispanic origin of householder, January 2015
                            • Consumer confidence at lowest point in a year, Blacks remain optimistic
                              • Figure 17: Consumer confidence among the total US population, January 2007-September 2015
                            • Frequent shopping promotes impulse purchases
                              • Unemployment rates for Blacks near prerecession levels
                                • Figure 18: Labor force participation and unemployment rates among the Black population (seasonally adjusted), January 2007-June 2015
                            • Key Players – What You Need to Know

                              • Brand extensions, expansions and packaging design are appealing
                                • Online shopping, natural grocery stores, private label struggling
                                  • The future is sensorial, entertaining, and smarter
                                  • What’s Working?

                                    • Brand extensions
                                        • Figure 19: Examples of brand extensions, 2015
                                      • Packaging
                                        • Figure 20: Examples of flexible and pouch packaging, 2015
                                      • Store expansion
                                        • Figure 21: Distribution of expenditures for food for off-premise consumption among the total population – Food and drink retailing only, 2015 (est)
                                        • Figure 22: Distribution of expenditures for food for off-premise consumption among the total population – Food and drink retailing only, 2005-15
                                    • What’s Struggling?

                                      • Shopping online for groceries and internet grocery retailers
                                        • Natural grocery stores
                                          • Store brands and private label
                                          • What’s Next?

                                            • Seeing is believing; sensorial packaging
                                              • More smart grocery tools
                                                • Grocery shopping as a social outing
                                                • The Consumer – What You Need to Know

                                                  • Women often make decisions alone, but they aim to please
                                                    • One-stop shopping is attractive, but old habits die hard
                                                      • Low prices are fine, but more is needed to attract Blacks
                                                        • Understanding what’s in their cart gives a glimpse of who they are
                                                        • Grocery Shopping Stakeholders

                                                            • Women more likely than men to make decisions on grocery shopping
                                                              • Figure 23: Who is responsible for purchasing groceries in Black households, by gender, September 2015
                                                            • Married couples value their spouse’s opinion on what to buy
                                                              • Figure 24: Who is responsible for purchasing groceries in Black households, by marital status, September 2015
                                                            • Special request welcomed in some Black households
                                                              • Figure 25: Family influence in grocery shopping decisions, September 2015
                                                            • Kids’ preferences influence what goes into the cart
                                                              • Figure 26: Children’s influence in grocery shopping decisions, September 2015
                                                          • Grocery Shopping Destinations

                                                              • Mass merchandisers more associated with nonfood items than food
                                                                • Figure 27: Correspondence analysis – Grocery shopping location, September 2015
                                                              • Walmart is the leader among mass merchandisers, competing with grocers
                                                                • Figure 28: Grocery shopping location, by category, September 2015
                                                            • Frequency of Shopping by Location

                                                                • Blacks shop supermarkets more frequently than any other store
                                                                  • Figure 29: Frequency of shopping for groceries at supermarkets, September 2015
                                                                • Internet grocery retailers struggle among Blacks
                                                                  • Figure 30: Frequency of shopping for groceries at nontraditional or specialty stores, September 2015
                                                                • Significant differences in where Blacks shop each week by region
                                                                  • Figure 31: Frequency of shopping for groceries – Once a week or more, by location, by region, September 2015
                                                                • Demographics impact frequency of visits on a monthly basis
                                                                  • Figure 32: Frequency of shopping for groceries – Once a month or more, by select locations, by gender, September 2015
                                                                  • Figure 33: Frequency of shopping for groceries – Once a month or more, by select locations, by age, September 2015
                                                              • Grocery Chain Leaders by Region

                                                                • Club stores among the top five stores Blacks shop for groceries
                                                                  • Figure 34: Top five stores Blacks shop at for groceries, by region, April 2014-June 2015
                                                                • Value-priced stores give Walmart a run for the money, especially among Blacks
                                                                  • Figure 35: Top five stores Blacks shop at for groceries – Index to total, by region, April 2014-June 2015
                                                              • Impact of Promotions

                                                                  • Promotions draw Blacks, sampling works for some
                                                                    • Figure 36: Impact of in-store sampling and promotions on Blacks when shopping for groceries, September 2015
                                                                  • Sales influence some, buying in bulk is where the real savings are
                                                                    • Figure 37: Impact of in-store sampling and promotions on Blacks when shopping for groceries, September 2015
                                                                  • Demographic impact perception of marketing influences
                                                                    • Figure 38: Influence of coupons and bulk sizes when shopping for groceries – Net three for each statement, by key demographics, September 2015
                                                                  • Price doesn’t trump brand names, will shop around for best deal
                                                                    • Figure 39: Impact of price on driving Blacks to purchase – Index to total, February 2014-March 2015
                                                                • Grocery Shopping Engagement

                                                                    • Blacks love to grocery shop; they shop often, alone, and at many stores
                                                                      • Figure 40: Grocery shopping patterns and behaviors, September 2015
                                                                    • Blacks take their time and shop as an escape, for inspiration, and to jog memory
                                                                      • Figure 41: Shopping engagement and enjoyment – Index to total, February 2014-March 2015
                                                                    • Blacks go above and beyond to promote brands they love
                                                                      • Figure 42: Brand advocacy among Blacks, September 2015
                                                                  • Attitudes toward Food and Nutrition

                                                                      • Blacks quick to try products, but still struggle with proper diet and nutrition
                                                                        • Figure 43: Black consumers’ attitudes toward diet and nutrition – Index to total population, February 2014-March 2015
                                                                      • Blacks not drawn to natural and organic foods, taste may be barrier
                                                                        • Figure 44: Black consumers’ attitudes toward organic and natural foods – Index to total, February 2014-March 2015
                                                                    • What’s in Their Cart

                                                                        • Blacks more likely than others to eat margarine
                                                                          • Figure 45: Top dairy products Black households eat – Index to total, April 2014-June 2015
                                                                        • Iced tea, juice, and nondiet carbonated beverages are must-haves
                                                                          • Figure 46: Top beverages Black households drink – Index to total, April 2014-June 2015
                                                                        • Blacks love sweets, frozen desserts at top of list
                                                                          • Figure 47: Top snacks and desserts Black households eat/use – Index to total, April 2014-June 2015
                                                                        • Blacks twice as likely to buy turkey parts, a key ingredient in soul food
                                                                            • Figure 48: Top meats Black households eat – Index to total, April 2014-June 2015
                                                                          • Blacks more likely to buy frozen foods, convenience a key driver
                                                                            • Figure 49: Top frozen foods Black households eat – Index to total, April 2014-June 2015
                                                                          • Bagged salad is popular among Blacks, saves prep time
                                                                            • Figure 50: Produce, bagged/packaged salad consumption among Black households, April 2014-June 2015
                                                                          • Blacks more likely to eat hot breakfast cereal; oatmeal and grits likely in cart
                                                                            • Figure 51: Leading cold cereal brands among Blacks – Index to total, April 2014-June 2015
                                                                            • Figure 52: Consumption of bread, seasoning, and dry goods among Black households – Index to total, April 2014-June 2015
                                                                          • Pork and beans a staple on Blacks’ shelves, more so than total population
                                                                            • Figure 53: Top canned good products Black households eat – Index to total, April 2014-June 2015
                                                                          • Blacks over index on gravy and sauces compared to total population
                                                                            • Figure 54: Top sauces and condiments Black households eat – Index to total, April 2014-June 2015
                                                                        • Brand Loyalty Drivers

                                                                            • Blacks loyal to brand names, longevity in the market gains trust
                                                                              • Figure 55: Brand trust among Blacks – Net three for each statement, September 2015
                                                                            • Blacks have no problem finding brands they love, they shop around to find them
                                                                              • Figure 56: Accessibility to preferred brands, September 2015
                                                                            • Good customer service, integrity, open communication gains repeat store visits
                                                                              • Figure 57: Brand loyalty drivers, September 2015
                                                                          • Appendix: Data Sources and Abbreviations

                                                                            • Data sources
                                                                              • Expenditure data
                                                                                • Definition
                                                                                  • Fan chart forecast
                                                                                    • Consumer survey data
                                                                                      • Correspondence analysis methodology
                                                                                        • Abbreviations and terms
                                                                                          • Abbreviations
                                                                                            • Terms
                                                                                            • Appendix: The Market

                                                                                                • Figure 58: Expenditures by Black households on groceries*, at inflation-adjusted prices, 2010-20
                                                                                                • Figure 59: Expenditures by Black households on groceries*, by segment, at current prices, 2010-20
                                                                                                • Figure 60: Expenditures by Black households on food and drink*, at current prices, 2010-20
                                                                                                • Figure 61: Expenditures by Black households on food and drink*, at inflation-adjusted prices, 2010-20
                                                                                                • Figure 62: Expenditures by Black households on general merchandise/household supplies*, at current prices, 2010-20
                                                                                                • Figure 63: Expenditures by Black households on general merchandise/household supplies*, at inflation-adjusted prices, 2010-20
                                                                                                • Figure 64: Expenditures by Black households on health and beauty care products*, at current prices, 2010-20
                                                                                                • Figure 65: Expenditures by Black households on health and beauty care products*, at inflation-adjusted prices, 2010-20
                                                                                            • Appendix: Consumer

                                                                                              • What’s in their cart
                                                                                                • Figure 66: Kinds of condiments and seasonings used – Index to total, by race/Hispanic origin, April 2014-June 2015
                                                                                                • Figure 67: Kinds of baking ingredients used – Index to total, by race/Hispanic origin, April 2014-June 2015
                                                                                                • Figure 68: Kinds of dairy products used – Index to total, by race/Hispanic origin, April 2014-June 2015
                                                                                                • Figure 69: Kinds of frozen foods used – Index to total, by race/Hispanic origin, April 2014-June 2015
                                                                                                • Figure 70: Types of canned goods household uses used – Index to total, by race/Hispanic origin, April 2014-June 2015
                                                                                                • Figure 71: Types of bread and pastries used – Index to total, by race/Hispanic origin, April 2014-June 2015
                                                                                                • Figure 72: Dry goods, shelf-stable and oil used – Index to total, by race/Hispanic origin, April 2014-June 2015
                                                                                                • Figure 73: Fresh or refrigerated produce used – Index to total, by race/Hispanic origin, April 2014-June 2015
                                                                                              • Attitudes toward food
                                                                                                • Figure 74: Black consumers’ attitudes toward food – Index to total, April 2014-June 2015
                                                                                              • Attitudes toward shopping
                                                                                                • Figure 75: Black consumers’ attitudes toward shopping – Index to total, February 2014 -March 2015

                                                                                            Black Consumers and Shopping for Groceries - US - November 2015

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