Description

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Hispanics and Shopping at Mass Merchandisers market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Key points included

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

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.

Expert analysis from a specialist in the field

Written by Juan Ruiz, a leading analyst in the Hispanic Insights sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

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

Table of Contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Market overview
          • Figure 1: Hispanics’ perimeter-of-the-store attitudinal segments, August 2019
        • Video summary
          • Top takeaways
            • The opportunities
              • Freshness is key, but cost has the deciding vote
                • Figure 2: Factors influencing purchases of perimeter-of-the-store categories, August 2019
              • Relevant promotions benefit both brand and store
                • Figure 3: Factors Hispanics would like to see more of when shopping at the perimeter of the store, August 2019
              • Leverage second-tier claims and affordability
                • Figure 4: Types of fruits and vegetables Hispanics consume, indexed to all, April 2018-June 2019
              • What it means/what’s next
              • The Market – What You Need to Know

                • The perimeter of the store: Hispanics have always been there
                  • Key demographics influence how they shop the perimeter of the store
                    • Four distinct groups of Hispanics relate to the perimeter of the store differently
                    • Market Perspective

                        • The broader market sees growth for perimeter-of-the-store sales
                          • The Hispanic contribution
                            • In-store bakeries: sweet pastries
                              • Figure 5: Hispanics’ purchases of boxed pastries from a supermarket – past three months, indexed to all, November 2018
                            • Fresh fruit and vegetables: the organic opportunity
                              • Figure 6: Types of fruits and vegetables Hispanics consume, indexed to all, April 2018-June 2019
                            • Meat, fish and poultry: focus on core cuts for chicken and beef
                              • Figure 7: Types of meat, fish and poultry Hispanics consume, indexed to all, April 2018-June 2019
                          • Market Factors

                            • Hispanics are overrepresented in urban areas
                              • Figure 8: Hispanics’ share of total population in urban, suburban and rural areas, 2016
                            • Larger household sizes may prompt Hispanics to eat more at home
                              • Figure 9: Average number of people per household, by race and Hispanic origin, 2017
                              • Figure 10: Households with related children, by race and Hispanic origin of householder, 2017
                            • Hispanics are value-oriented consumers
                              • Figure 11: Median household income, by race and Hispanic origin of householder, 2017
                              • Figure 12: Household income distribution, by race and Hispanic origin of householder, 2017
                          • Shopping the Perimeter-of-the-Store Attitudinal Segments

                            • There are four types of Hispanic perimeter-of-store shoppers
                                • Figure 13: Hispanics’ perimeter-of-the-store attitudinal segments, August 2019
                              • Prepared Food Embracers (32%)
                                • Figure 14: Profile of Prepared Food Embracers, August 2019
                              • Perimeter Averse (23%)
                                • Figure 15: Profile of Perimeter Averse, August 2019
                              • Perimeter Enthusiasts (23%)
                                • Figure 16: Profile of Perimeter Enthusiasts, August 2019
                              • Perimeter Advocates (23%)
                                • Figure 17: Profile of Perimeter Advocates, August 2019
                            • Implications of Attitudinal Segments

                              • Fresh foods are worth frequent trips to the store
                                • Figure 18: Hispanics’ attitudes toward convenience in the perimeter of the store, by attitudinal segments, August 2019
                              • Picky eaters can hinder the excitement for exploring the perimeter of the store
                                • Figure 19: Hispanics’ attitudes toward flexibility in the perimeter of the store, by attitudinal segments, August 2019
                              • Fresh produce is a grocery retailers’ business card
                                • Figure 20: Hispanics’ attitudes toward quality in the perimeter of the store, by attitudinal segments, August 2019
                              • There is no middle-point with prepared foods
                                • Figure 21: Hispanics’ attitudes toward prepared foods in the perimeter of the store, by attitudinal segments, August 2019
                            • What’s Happening – What You Need to Know

                              • Perimeter-of-the-store offerings need to reflect local communities
                                • Perimeter-of-the-store departments contribute to overall store positioning
                                  • Coupons have limited power to promote trial
                                    • Hispanics underindex for finding locally grown claims relevant
                                    • What’s Happening

                                      • Players differ by region
                                        • Figure 22: Northeast region – Supermarkets and food stores Hispanics shopped – past four weeks, indexed to all, April 2018-June 2019
                                        • Figure 23: Midwest region – Supermarkets and food stores Hispanics shopped – past four weeks, indexed to all, April 2018-June 2019
                                        • Figure 24: South region – Supermarkets and food stores Hispanics shopped at – past four weeks, indexed to all, April 2018-June 2019
                                        • Figure 25: West region – Supermarkets and food stores Hispanics shopped at – past four weeks, indexed to all, April 2018-June 2019
                                      • Perimeter-of-the-store offerings fit into a bigger picture
                                        • Perimeter-of-the-store products are key to make or break new services
                                          • Figure 26: Walmart Facebook posts about grocery delivery and grocery pickup services, September – October 2019
                                          • Figure 27: H-E-B Facebook posts about grocery delivery and grocery pickup services, July-September 2019
                                        • Perimeter-of-the-store products can convey authenticity
                                          • Figure 28: Instagram post from Vallarta Supermarkets – Flavors from my land, October 2019
                                          • Figure 29: Sedano’s Supermarkets Facebook post highlighting ingredients of traditional Puerto Rican dish, September 2019
                                        • Perimeter-of-the-store foods communicate freshness, quality and value
                                          • Figure 30: ALDI USA Facebook posts about value, August-October 2019
                                      • What Needs Context

                                        • Coupons and their impact promoting trial
                                            • Figure 31: Hispanics’ coupon usage and reason to use, indexed to all, April 2018-June 2019
                                          • Locally grown claims
                                            • Figure 32: Relevance of locally grown claims to Hispanics, by age, indexed to all, April 2018-June 2019
                                        • The Consumer – What You Need to Know

                                          • Hispanics not as keen for traditional supermarkets
                                            • Freshness matters, but so do taste and cost
                                              • In-store coupons and product sampling resonate with different types of users
                                                • Hispanics need a push to increase their consumption of perimeter-of-the-store foods
                                                • Perimeter Retailers

                                                  • Hispanics don’t agree on which stores they associate with fresh foods
                                                    • Figure 33: Stores Hispanics associate with fresh foods, by level of acculturation, August 2018
                                                  • Traditional supermarkets face significant competition targeting Hispanics
                                                    • Figure 34: Retailers Hispanics shop at for perimeter-of-the-store foods, indexed to all, August 2019
                                                  • Mass merchandisers to capture more everyday shoppers with smaller neighborhood stores
                                                      • Figure 35: Hispanics shopping at mass supermarkets and merchandisers for perimeter-of-the-store foods, by urban/suburban/rural area, August 2019
                                                    • Hispanic grocery stores are a top destination among unacculturated Hispanics
                                                      • Figure 36: Hispanics shopping at select retailers for perimeter-of-the-store foods, by level of acculturation, August 2019
                                                  • Purchase Influencers by Perimeter Category

                                                    • Freshness matters, but so do taste and cost
                                                      • Figure 37: Factors influencing purchases of perimeter-of-the-store categories, August 2019
                                                    • Hispanics are receptive to “second-tier” factors
                                                      • Figure 38: Factors influencing purchases of perimeter-of-the-store categories, indexed to all, August 2019
                                                    • Freshness: acculturated Hispanics may be pickier
                                                      • Figure 39: Influence of freshness on Hispanics’ purchases of perimeter-of-the-store categories, by level of acculturation, August 2019
                                                    • Taste: with others in mind
                                                      • Figure 40: Influence of taste on Hispanics’ purchases of perimeter-of-the-store categories, by gender and age, August 2019
                                                  • Perimeter-of-the-Store Experience Enhancers

                                                    • Hispanics want discounts and sampling opportunities
                                                      • In-store coupons help strengthen an existing connection
                                                        • Sampling can influence the store’s image
                                                          • Increasing variety and Hispanic flavors require a long-term approach
                                                            • Figure 41: Factors Hispanics would like to see more of when shopping at the perimeter of the store, August 2019
                                                          • TURF analysis – Perimeter-of-the-store enhancers
                                                              • Figure 42: TURF Analysis – Factors Hispanics would like to see more of when shopping at the perimeter of the-store, August 2019
                                                              • Figure 43: Table – TURF Analysis – Factors Hispanics would like to see more of when shopping at the perimeter of the store, August 2019
                                                            • In-store coupons and product samples need to be relevant for the entire family
                                                              • Figure 44: Select factors Hispanics would like to see more of when shopping at the perimeter of the store, by age and gender, August 2019
                                                            • Hispanic-related initiatives are niche, but offer potential
                                                              • Figure 45: Select factors Hispanics would like to see more of when shopping at the perimeter of the store, by level of acculturation, August 2019
                                                              • Figure 46: Factors Hispanics would like to see more of when shopping at the perimeter of the store, by household size, August 2019
                                                          • Attitudes toward Perimeter-of-the-Store Foods

                                                            • Hispanics’ healthy diet resolutions tend to remain aspirations – not achievements
                                                              • Figure 47: Hispanics’ attitudes toward perimeter-of-the-store foods, August 2019
                                                              • Figure 48: Hispanics’ attitudes toward perimeter-of-the-store foods, by attitudinal segments, August 2019
                                                            • Age drives Hispanics’ desire to eat healthier
                                                              • Figure 49: Hispanics’ attitudes toward perimeter-of-the-store foods, by age, August 2019
                                                            • Fish and seafood’s appeal increases in household income
                                                              • Figure 50: Hispanics’ attitudes toward consuming fish and seafood, by language spoken at home and household income, August 2019
                                                          • Appendix – Data Sources and Abbreviations

                                                            • Consumer survey data
                                                              • Consumer qualitative research
                                                                • Abbreviations and terms
                                                                  • Abbreviations
                                                                    • Terms
                                                                      • A note about acculturation
                                                                        • TURF Methodology

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