10 Things Retailers Should Know

1. U.S. Hispanic spending power growth has significantly outpaced non-Hispanic with an average of $5 more per basket.

On average, Hispanics spend 13% more than GM consumer in the CPG category. As food plays an important role in Latino culture and they tend to have higher monthly food expenditures than non-Hispanics.

Hispanics also spend more than the GM on clothing because of their higher proportion of children and their younger demographic more prone to keep up with the latest trends. The average Latina has 11 pairs of jeans, while the average Caucasian female has nine.

2. Hispanics are quickly becoming the savviest of shoppers.

Hispanic women are significantly more aware (by a 48% to 36% margin) of "sales" before going to the store than GM shoppers.

Hispanics have always been savvy consumers and yet, the economic downfall has forced Latina moms to add new tactics to their repertoire like usage of coupons and in-store communications.



Although the current crisis hasn't affected Hispanics shopping patterns as drastically as the GM, Latinos are looking for partners that will help them navigate their current reality. Going forward, the key challenge for merchants is to redefine the consumer's value equation from "value = price" to "value = price + something else" (e.g., customer service, product's healthy attributes, designer exclusives).

3. Hispanic research and plan for each trip.

Hispanics plan their trips well -- more so than the GM population -- not only for what's needed, but also for the value that can be attained.

For Hispanics, the planning phase is important in organizing the shopping trip and controlling impulse purchases and budgets, not eliminating additional fill-in shopping (the general market's primary motivation is limiting the number of trips in a given time frame).

4. Hispanics are macro shopping.

Hispanic consumers are almost four times more likely than GM consumers to make their grocery shopping at mass merchandisers and mega stores.

Hispanic consumers travel significant distances to shop in these channels and spend considerable time and money in each visit, thus making large purchases and family-sized items a top priority for those shopping trips. Also, these mass merchandisers allow the consumers to shop for multiple-product categories.

5. Hispanics are not one-stop shoppers.

Hispanics significantly outpace the national spending averages across nearly every channel in CPG spending. The shopping experience plays a far more important role in their lives than for their non-Hispanic peers, making them a highly attractive segment for retailers. Hispanics are not only shopping to fulfill a list, but to fulfill different needs and experiences as well.

6. Hispanics enjoy the shopping experience.

37% of Hispanics "enjoy any kind of shopping" (vs. 25% of non-Hispanics).

No matter where, Hispanics report that shopping is a "feel good" experience. 53% of Hispanics evaluate their trip satisfaction on being "a fun place to shop." While, 43% of Hispanics "enjoy shopping even when they are not buying," vs. 37% of non-Hispanics. For retailers it is important to embrace the market by making store investments to become a FUN-shopping destination for Hispanics.

7. Shopping is not a chore.

"The store is a place where I can spend time with friends and family." Department - 50% Hisp. vs. 28% GM; Grocery - Hisp. 48% vs. 19% GM; Mass - Hisp. 46% vs. 24% GM; Drugstore - Hisp. 41% vs. 25% GM.

For Hispanics, shopping is a destination for meeting with friends and family, an opportunity to catch up and spend time together. Offering a more interactive environment allows retailers to become a preferred destination.

8. Advertising impacts and attracts Hispanics

36% of Hispanics say that they remember advertised products while shopping. 31% say that ads help them pick products for their kids.

Hispanics tend to be more receptive to advertising and marketing efforts than GM. Another important aspect of advertising is retail promotions that in most cases will influence their decision to visit a particular store.

They are actively seeking choices that allow them to increase their brand selection with new and better products and advertising plays an important role in getting brands noticed and differentiated.

9. It is a myth that Hispanics, overall, are more loyal.

Only those Hispanics who are recent arrivals (fewer than four years in the US) display above average brand loyalty.

There is no conclusive proof to say, in general, that Hispanics are more loyal shoppers. Retailer loyalty is strong among Hispanics but it pertains mainly to the store of choice, based on the need. Continued loyalty relies on value offer, product quality, and experience consistency.

10. Hispanics are quickly adopting online shopping.

Nearly two-thirds (62%) of Hispanic Internet users are buying online.

Retail initiatives for Hispanics have been primarily focused on brick and mortar, but the time has come to expand initiatives to the virtual shopping world.

In 2007, Hispanic online purchases accounted for $12.8 billion, 11% of all online retail spending. Furthermore, Hispanics are more likely to provide online feedback: 34% vs. 27% of non-Hispanics.

Now it is imperative that brands and retailers offer the opportunity for online purchases. Additionally, this will open up a whole new avenue for building a brand relationship through online activations and promotions. It also multiplies the impact through digital word of mouth via consumer feedback.

4 comments about "10 Things Retailers Should Know ".
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  1. Walter Graff from Bluesky Media, December 24, 2009 at 12:27 p.m.

    If you give someone a hammer, everything looks like a nail.

  2. Lee Vann from Captura Group, December 24, 2009 at 3:51 p.m.

    Alvaro, great piece, especially liked the online data. Can you let me know the source of the information?

    Saludos, Lee

  3. Maricela Cueva from VPE Public Relations, December 29, 2009 at 6:59 p.m.

    Truly agree that Latinos are not more loyal. As Latinos become savvier with their product purchases they quickly realize that brand loyalty isn't as important as what give them more value for their money, especially when working within a tight budget.

  4. A.j. Cuervo from Comdesol, LLC, January 4, 2010 at 3:58 p.m.

    Excellent information. Thanks for putting it all in one place, it makes it easier to put forth what we've known for some time now. I've yet to buy me a few more pairs of jeans though! as I do not own 11, ja, ja...

    Saludos cordiales,
    A.J. Cuervo

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