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Description

Description

Covered in this report

For the purposes of this report, Mintel has defined a mass merchandiser as a large retail store offering a wide range of product categories, often at discounted prices, including but not limited to appliances, clothing and accessories, shoes, furniture, office equipment, household products, health, beauty and personal care products, electronics, music and entertainment, sporting goods and food. These stores have central customer checkout areas, generally in the front of the store, and may have additional cash registers located in one or more individual departments.

"Hispanics almost universally shop at mass merchandisers; Walmart and Target are far ahead of the rest. Hispanics associate Walmart with good value and a vast product selection, while a pleasant store environment is more top-of-mind for Target. Mass merchandisers continue to adapt to modern consumers’ needs in order to ensure broad appeal for all types of shoppers. They are focused on physical stores (eg opening smaller formats in urban areas, remodeling existing stores and optimizing the product mix) and also expanding ecommerce. As Hispanics are late adopters of online shopping, the in-store experience is more important for reaching these consumers."

- Juan Ruiz, Director of Hispanic Insights

This Report looks at the following areas:

  • Walmart and Target matter – reason #1 – Access
  • Walmart and Target matter – reason #2 – Private labels
  • Hispanics dread the checkout process

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Market overview
          • Figure 1: Mass merchandisers Hispanics shop at – Past 12 months (in-store or online), November 2019
        • Video summary
          • Director of Hispanic Insights, Juan Ruiz, summarizes the top takeaways.
            • Top takeaways
              • The opportunities
                • Make the shopping experience count
                  • Figure 2: Hispanics’ attitudes toward mass merchandisers – Price and experience, November 2019
                • Personalize promotions
                  • Figure 3: Hispanics’ desired improvements – Personalized promotions and coupons, by gender and age, November 2019
                • Stay on the overarching message
                  • Figure 4: Share of Hispanics who shop at mass merchandisers – In-store vs online, November 2019
                • What Hispanics want and why
                • The Market – What You Need to Know

                  • Demographic factors highlight the potential
                    • Economic factors help explain Hispanics’ focus on value
                      • Hispanics are online
                      • Market Perspective

                        • Hispanics’ youth makes them a prime target for mass merchandisers
                            • Figure 5: Hispanic share of total US population, by age, 2018
                          • Larger household sizes mean broader needs
                            • Figure 6: Retailers Hispanic parents shop at for back-to-school, indexed to all, November 2018
                            • Figure 7: Average number of people per household, by race and Hispanic origin, 2018
                            • Figure 8: Households with related children, by race and Hispanic origin of householder, 2018
                        • Market Factors

                          • Hispanics’ lower median household income prompts them to look for value
                            • Figure 9: Median household income, by race and Hispanic origin of householder, 2018
                            • Figure 10: Household income distribution, by race and Hispanic origin of householder, 2018
                          • Strong labor market can prompt Hispanics to increase their discretionary expending
                            • Figure 11: Unemployment rate (seasonally adjusted), by Hispanic origin, January 2007-November 2019
                            • Figure 12: Median income of all US households and Hispanic households, in inflation-adjusted dollars, 2007-18
                          • The digital divide is closed, opening the door to online shopping
                            • Figure 13: Hispanic internet use, by age, April 2018-June 2019
                        • Mass Merchandisers in Context – What You Need to Know

                            • Figure 14: Mass merchandisers and Mintel Trend Drivers, January 2020
                        • What’s Happening

                          • Trend Driver: Surroundings
                            • Mass merchandisers are getting closer to Hispanic consumers
                              • Figure 15: Hispanics’ share of total population in urban, suburban and rural areas, 2016
                            • Trend Driver: Experiences
                              • Mass merchandisers are updating their brick and mortar stores
                                  • Figure 16: Target Facebook video post announcing a remodeled location, October-December 2019
                                • Trend Driver: Value
                                  • Mass merchandisers see potential in store brands
                                    • Figure 17: Hispanics’ perception of quality in mass merchandisers’ store brands, November 2019
                                • What’s Different

                                  • Trend Driver: Technology
                                    • Hispanics are slow to incorporate technology in their shopping
                                      • Apps are useful but need a boost in adoption
                                          • Figure 18: Past three-month incidence of shopping online, by Hispanic origin and household income, April 2018-June 2019
                                      • What’s Next

                                        • A focus on the individual…
                                          • …via lifestyles
                                            • Trend Drivers: Wellbeing, Rights
                                                • Figure 19: Walmart Facebook post promoting Wellness Day, December 2019-January 2020
                                              • …via personalization
                                                • Trend Driver: Identity
                                                • The Consumer – What You Need to Know

                                                  • Walmart and Target define the segment
                                                    • Eight in 10 Hispanic shoppers have shopped online at mass merchandisers
                                                      • Price trumps convenience when shopping at mass merchandisers
                                                        • Hispanics associate Walmart and Target with different attributes
                                                          • Hispanics would like a more convenient checkout process
                                                          • Mass Merchandisers Shopped

                                                            • There is significant overlap in mass merchandisers’ visitation
                                                                • Figure 20: Mass merchandisers Hispanics shop at – Past 12 months (in-store or online), November 2019
                                                                • Figure 21: Mass merchandisers Hispanics shop at – Overlaps in the past 12 months (in-store or online), November 2019
                                                              • The Hispanic Walmart shopper
                                                                • Figure 22: Profile of Hispanics who shop at Walmart, November 2019
                                                              • The Hispanic Target shopper
                                                                • Figure 23: Profile of Hispanics who shop at Target, November 2019
                                                              • The Hispanic Amazon shopper
                                                                • Figure 24: Profile of Hispanics who shop at Amazon, November 2019
                                                            • In-Store vs Online Shopping

                                                              • Online is complementing, not replacing, in-store purchases
                                                                • Figure 25: Share of Hispanics who shop at mass merchandisers – In-store vs online, November 2019
                                                              • Household income drives online purchases
                                                                • Figure 26: Share of Hispanics who shop at Walmart and Target online, by household income, November 2019
                                                              • A lack of access to payment methods may hinder younger Hispanics from shopping online
                                                                • Figure 27: Share of Hispanics who shop at Walmart and Target online, by age, November 2019
                                                            • Attitudes toward Mass Merchandisers

                                                              • Convenience is secondary to price but can help mass merchandisers stand out
                                                                • Figure 28: Hispanics’ attitudes toward mass merchandisers, November 2019
                                                              • Older Hispanics focus mainly on price; younger also on experience
                                                                • Figure 29: Hispanics’ attitudes toward mass merchandisers – Price and experience, by age, November 2019
                                                              • Larger families see the good in store brands
                                                                • Figure 30: Hispanics’ attitudes toward mass merchandisers – Quality of store brands, by parental status and number of people living in the household, November 2019
                                                              • Younger Hispanic women are open to buying Hispanic products at mass merchandisers
                                                                • Figure 31: Hispanics’ attitudes toward mass merchandisers – Hispanic products, by gender and age and level of acculturation, November 2019
                                                            • Perceptions of Mass Merchandisers

                                                              • Mass merchandisers compete in different lanes
                                                                  • Figure 32: Correspondence analysis – Symmetrical map – Perceptions of mass merchandisers, November 2019
                                                                  • Figure 33: Perceptions of mass merchandisers, November 2019
                                                                • Walmart’s appeal is higher among Spanish-dominant Hispanics
                                                                  • Figure 34: Perceptions of Walmart, by language spoken at home and household income, November 2019
                                                                • Target’s appeal is higher among affluent Hispanics
                                                                  • Figure 35: Perceptions of Target, by language spoken at home and household income, November 2019
                                                                • Target’s focus on experience can pay off in the long term
                                                                  • Figure 36: Perceptions of Walmart and Target, by gender and age, November 2019
                                                              • Desired Improvements

                                                                • Desired improvements revolve around efficiency and value
                                                                  • Figure 37: Hispanics’ desired improvements, November 2019
                                                                • TURF analysis – desired improvements
                                                                    • Figure 38: TURF Analysis – Desired improvements, November 2019
                                                                    • Figure 39: Table – TURF Analysis – Desired improvements, November 2019
                                                                  • Shorter checkout lines can drive sales up
                                                                    • Figure 40: Hispanics’ desired improvements – Checkout lines, by number of people living in the household, November 2019
                                                                    • Figure 41: Hispanics’ preference to shop with their families, indexed to all, April 2018-June 2019
                                                                  • Personalized promotions would make Hispanic women happy
                                                                    • Figure 42: Hispanics’ likelihood to shop at a favorite store due to price, by gender and age, April 2018-June 2019
                                                                    • Figure 43: Hispanics’ desired improvements – Personalized promotions and coupons, by gender and age, November 2019
                                                                • Appendix – Data Sources and Abbreviations

                                                                  • Data sources
                                                                    • Consumer survey data
                                                                      • Abbreviations and terms
                                                                        • A note about acculturation
                                                                          • Correspondence analysis methodology
                                                                            • TURF methodology
                                                                            • Appendix – Consumer Data

                                                                                • Figure 44: Past three month incidence of shopping online, language spoken at home and household income, April 2018-June 2019

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