The nature of the Hispanic retail market may be changing as everyone notices their success.
Jorge Vazquez, president of Latin Specialties, LLC BB #:165092 in Houston, TX, says there used to be more mom-and-pop stores that specialized in Hispanic, “but now it’s getting into bigger markets, with Kroger and Walmart having full selections of these items, and I expect they will take some market share.
“Walmart is more likely to carry Hispanic items, especially in areas where there are more Hispanic shoppers,” he says.
Anne-Marie Roerink of 210 Analytics, which creates the Power of Produce report for the Food Marketing Institute, says Hispanic consumer shopping patterns are different that other ethnic groups.
“Hispanic consumers have a higher trip frequency,” she says, “and highly value fresh.
“This is one of the reasons why value-added is not a big offering in Hispanic formats,” Roerink adds. “Authenticity of recipes is important, which means items are cooked from scratch according to family tradition. For this same exact reason, we continue to see higher brand loyalty among Hispanic shoppers as they continue to under-index for private brands.”
In an age of online sales, Roerink says Hispanic food retailers are bucking the trend by offering a superior shopping experience. “Many Hispanic retailers score very high on in-store experience as they celebrate the Hispanic culture,” she says.
“Their singular or at least in-depth focus on one cuisine helps them to be highly relevant versus having to carry a little bit of everything,” Roerink explains. “It starts with high relevance in assortment and the balance of items, but it also means a very different look, often with little flags or colorful decorations and music blasting through the speakers.”
Her analysis isn’t just based on market data but personal experience. “When my family was stationed in El Paso at Ft. Bliss, we lived more than 20 miles away from the Pro Ranch, but many friends in the neighborhood would go every few weeks to stock up on hot deals, hard-to-find items, and eat in the in-store restaurant,” she recalls.
“Shopping at Pro Ranch was a day trip and a fun experience, and often their enthusiasm prompted others in the neighborhood to go check it out. It’s that authenticity, specialty, and ‘being known for something’ that’s driving the success many traditional retailers are struggling to copy. Sure, many have added ethnic items, but it’s nothing like the depth of inventory seen at the Hispanic formats and certainly the experience is nothing like it,” Roerink says.
This is a multi-part spotlight feature on the Hispanic produce market adapted from the October 2019 issue of Produce Blueprints.
