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Hispanic Shopper Close-Up
                              Syndicated Study – Highlights




© Meyers Research Center March - 2013
Background
According to the 2010 U.S. Census, Hispanics represent 16% of total U.S. population. Their numbers have
increased by 15.2 million between 2000 and 2010, and they account for over half of the 27.3 million increase in
the total population of the United States. During this ten year period, the Hispanic population grew by 43%, four
times the growth in the total U.S. population.1 By 2050, it is estimated that Hispanics will account for 29% of the
population of the United States.2

Retailers and marketers have been reacting to the opportunities presented by this growing target audience
(implementing Hispanic shopper-marketing programs, expanding the availability of Hispanic brands/brands from
shopper’s home country, establishing retail outlets to cater to the needs of this segment). However, there
remains a scarcity of information to help retailers and marketers understand the Hispanic shopper.

To this end, Meyers Research Center (MRC) launched the first wave of the Hispanic Shopper Close-Up Study in
2012. This research will provide valuable shopper insights into Hispanic consumers’ shopping behaviors,
attitudes and decision-making patterns across 8 key retail outlets including Supermarkets, Hispanic
Supermarkets, Mass Merchandisers, Warehouse Clubs, Drug Stores, Dollar Stores, Convenience Stores and
Bodegas.

This research will offer a powerful tool for shopper insights/category managers, channel and sales strategists,
advertising/merchandising planners and retailers to effectively target this valuable and rapidly growing shopper
segment.




1 – 2010 United States Census; 2-Pew Research Center
                                                                                                                 2
Research Objectives
The primary focus of this program is to develop a better understanding of Hispanic shopping behaviors
and how these may differ by level of acculturation and from shopping behaviors of non-Hispanics.

Specifically, the research provides insights about various elements including:

          What is the profile of the shopper by store format

          What formats are being shopped for various categories

          What are the key factors driving store selection

          What are the underlying dynamics of the store visit by channel:
            –   What preparations are made prior to the visit

            –   What are destination categories, which categories are impulse buys

            –   What are the key in-store influencers
            –   Total amount spent/market basket




                                                                                                        3
Research Approach
             Phase 1:         Ethnographic Interviews (Exploratory phase)
                                  • Hispanic shoppers only;
                                  • Men and women between 25 and 54 years old
                                  • 22 interviews within two markets: New York and Los Angeles metro

             Phase 2:         Online Interviews
                                  • Hispanic and Non-Hispanic shoppers; 18 years and older
                                        o Each shopper asked about a recent shopping experience in up to two different trade channels.
                                   • Hispanics include: acculturated, bicultural, and unacculturated
                                         o Level of acculturation was determined by: country of origin, years living in the U.S., language
                                           spoken both in and outside the home and cultural identification.
                                   •    Over 3,000 interviews:

                                          Hispanics (2,194)                                         Total Shoppers by Class-of-Trade
                                          • Acculturated (729)                                       1. Supermarket (559)
                                          • Bicultural (868)                                         2. Hispanic Supermarket (334)
                                          • Unacculturated (597)                                     3. Mass Merchandiser (395)
                                                                                                     4. Warehouse Club (524)
                                                                                                     5. Drug Store (451)
                                        Non-Hispanic (1,110)                                         6. Dollar Store (485)
                                                                                                     7. Convenience Store (670)
                                                                                                     8. Bodega (279)


* Data was weighted to reflect region, ethnic representation and heritage/country of origin (Hispanics only) in the U.S. population as per
  the 2010 Census.
                                                                                                                                             4
Study Highlights (Cross Channel Perspective)
                                           Hispanics                       Acculturation Level                    Non-Hispanics
General Shopping Behaviors
Where They Regularly Shop       • Mass merchandiser,                  • Unacculturated shop the fewest      •Mass merchandiser,
                                  supermarket, drug, dollar             channels.                            supermarket, drug
                                                                      • Acculturated least likely to shop
                                                                        ethnic stores.

Shopping Frequency              • Shop all channels except drug       • Acculturated visit most stores      •Shop dollar stores and
                                  and warehouse club 1x/week or         less often than bicultural or        warehouse club less often
                                  more often.                           unacculturated.                      versus Hispanics.

Changes in Shopping Frequency   • Net increases for supermarkets,     • Greatest increases for lesser       •Net increases for supermarkets,
 Past 12 months                   Hispanic supermarkets, mass           acculturated (unacculturated &       mass merchandisers, dollar
                                  merchandisers, dollar,                bicultural) for supermarkets,        stores, warehouse clubs.
                                  convenience and bodegas.              Hispanic supermarkets, mass
                                • Net decrease for warehouse            merchandisers, bodegas.
                                  clubs.                              • Acculturated show greater
                                                                        increases for dollar stores.

Pre-Store Behaviors
                                • Hispanic shoppers choose a store    • EDLP is more critical in store      • EDLP is less critical to non-
Key Store Selection Criteria      primarily based on convenient         choice for acculturated vs. other     Hispanics than Hispanics.
                                  location.                             Hispanic segments

Planning the Store Visit        • Planning is a key characteristic,   • More use of shopping lists and/or   • Greater planning occurs for
                                  with highest levels for warehouse     store circulars among lesser          non-Hispanics than Hispanics
                                  clubs and supermarkets.               acculturated and least use of         for supermarkets, mass
                                • Typically includes making a           coupons.                              merchandisers, drug and
                                  shopping list and clipping                                                  convenience.
                                  coupons.




                                                                                                                                        5
Study Highlights (Cross Channel Perspective)
                                        Hispanics                      Acculturation Level                    Non-Hispanics
In-Store Behaviors
                              • Highest spend per trip in          • Unacculturated spend more per      •Spend less than Hispanics in
Total Spend per Visit           warehouse club and mass              trip, acculturated spend the        supermarkets, mass
                                merchandisers.                       least.                              merchandisers and warehouse
                                                                                                         clubs.

Lowering Prices at Checkout   • Highly engaged in loyalty          • Unacculturated display lowest      •Are more involved than
                                programs in drug and                 participation in loyalty            Hispanics in loyalty programs.
                                supermarkets.                        programs and are least likely to
                                                                     use coupons.

Impulse Purchasing            • High impulse purchasing across     • Impulse purchasing is most         •Less impulse purchasing than
                                all channels. Price/promotion is     common among                        Hispanics in selected channels.
                                a common trigger.                    unacculturated.


  For more information about this study or to purchase a PowerPoint report of
  findings (including channel and category-specific findings) contact:

                                         George E. Brown II
                                    gbrown@meyersresearch.com

                                         Jeff Friedlaender
                               jfriedlaender@meyersresearch.com

                                             Frances Glick
                                      fglick@meyersresearch.com
                                                                                                                                  6

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Hispanic Shopper Insights

  • 1. Hispanic Shopper Close-Up Syndicated Study – Highlights © Meyers Research Center March - 2013
  • 2. Background According to the 2010 U.S. Census, Hispanics represent 16% of total U.S. population. Their numbers have increased by 15.2 million between 2000 and 2010, and they account for over half of the 27.3 million increase in the total population of the United States. During this ten year period, the Hispanic population grew by 43%, four times the growth in the total U.S. population.1 By 2050, it is estimated that Hispanics will account for 29% of the population of the United States.2 Retailers and marketers have been reacting to the opportunities presented by this growing target audience (implementing Hispanic shopper-marketing programs, expanding the availability of Hispanic brands/brands from shopper’s home country, establishing retail outlets to cater to the needs of this segment). However, there remains a scarcity of information to help retailers and marketers understand the Hispanic shopper. To this end, Meyers Research Center (MRC) launched the first wave of the Hispanic Shopper Close-Up Study in 2012. This research will provide valuable shopper insights into Hispanic consumers’ shopping behaviors, attitudes and decision-making patterns across 8 key retail outlets including Supermarkets, Hispanic Supermarkets, Mass Merchandisers, Warehouse Clubs, Drug Stores, Dollar Stores, Convenience Stores and Bodegas. This research will offer a powerful tool for shopper insights/category managers, channel and sales strategists, advertising/merchandising planners and retailers to effectively target this valuable and rapidly growing shopper segment. 1 – 2010 United States Census; 2-Pew Research Center 2
  • 3. Research Objectives The primary focus of this program is to develop a better understanding of Hispanic shopping behaviors and how these may differ by level of acculturation and from shopping behaviors of non-Hispanics. Specifically, the research provides insights about various elements including: What is the profile of the shopper by store format What formats are being shopped for various categories What are the key factors driving store selection What are the underlying dynamics of the store visit by channel: – What preparations are made prior to the visit – What are destination categories, which categories are impulse buys – What are the key in-store influencers – Total amount spent/market basket 3
  • 4. Research Approach Phase 1: Ethnographic Interviews (Exploratory phase) • Hispanic shoppers only; • Men and women between 25 and 54 years old • 22 interviews within two markets: New York and Los Angeles metro Phase 2: Online Interviews • Hispanic and Non-Hispanic shoppers; 18 years and older o Each shopper asked about a recent shopping experience in up to two different trade channels. • Hispanics include: acculturated, bicultural, and unacculturated o Level of acculturation was determined by: country of origin, years living in the U.S., language spoken both in and outside the home and cultural identification. • Over 3,000 interviews: Hispanics (2,194) Total Shoppers by Class-of-Trade • Acculturated (729) 1. Supermarket (559) • Bicultural (868) 2. Hispanic Supermarket (334) • Unacculturated (597) 3. Mass Merchandiser (395) 4. Warehouse Club (524) 5. Drug Store (451) Non-Hispanic (1,110) 6. Dollar Store (485) 7. Convenience Store (670) 8. Bodega (279) * Data was weighted to reflect region, ethnic representation and heritage/country of origin (Hispanics only) in the U.S. population as per the 2010 Census. 4
  • 5. Study Highlights (Cross Channel Perspective) Hispanics Acculturation Level Non-Hispanics General Shopping Behaviors Where They Regularly Shop • Mass merchandiser, • Unacculturated shop the fewest •Mass merchandiser, supermarket, drug, dollar channels. supermarket, drug • Acculturated least likely to shop ethnic stores. Shopping Frequency • Shop all channels except drug • Acculturated visit most stores •Shop dollar stores and and warehouse club 1x/week or less often than bicultural or warehouse club less often more often. unacculturated. versus Hispanics. Changes in Shopping Frequency • Net increases for supermarkets, • Greatest increases for lesser •Net increases for supermarkets, Past 12 months Hispanic supermarkets, mass acculturated (unacculturated & mass merchandisers, dollar merchandisers, dollar, bicultural) for supermarkets, stores, warehouse clubs. convenience and bodegas. Hispanic supermarkets, mass • Net decrease for warehouse merchandisers, bodegas. clubs. • Acculturated show greater increases for dollar stores. Pre-Store Behaviors • Hispanic shoppers choose a store • EDLP is more critical in store • EDLP is less critical to non- Key Store Selection Criteria primarily based on convenient choice for acculturated vs. other Hispanics than Hispanics. location. Hispanic segments Planning the Store Visit • Planning is a key characteristic, • More use of shopping lists and/or • Greater planning occurs for with highest levels for warehouse store circulars among lesser non-Hispanics than Hispanics clubs and supermarkets. acculturated and least use of for supermarkets, mass • Typically includes making a coupons. merchandisers, drug and shopping list and clipping convenience. coupons. 5
  • 6. Study Highlights (Cross Channel Perspective) Hispanics Acculturation Level Non-Hispanics In-Store Behaviors • Highest spend per trip in • Unacculturated spend more per •Spend less than Hispanics in Total Spend per Visit warehouse club and mass trip, acculturated spend the supermarkets, mass merchandisers. least. merchandisers and warehouse clubs. Lowering Prices at Checkout • Highly engaged in loyalty • Unacculturated display lowest •Are more involved than programs in drug and participation in loyalty Hispanics in loyalty programs. supermarkets. programs and are least likely to use coupons. Impulse Purchasing • High impulse purchasing across • Impulse purchasing is most •Less impulse purchasing than all channels. Price/promotion is common among Hispanics in selected channels. a common trigger. unacculturated. For more information about this study or to purchase a PowerPoint report of findings (including channel and category-specific findings) contact: George E. Brown II gbrown@meyersresearch.com Jeff Friedlaender jfriedlaender@meyersresearch.com Frances Glick fglick@meyersresearch.com 6