FMI: U.S. Hispanics- Insights into Grocery Shopping Preferences & Attitudes.

To assist these retailers in understanding this burgeoning group of consumers, FMI undertook U.S. Hispanics: Insights into Grocery Shopping Preferences and Attitudes, 2002. The study contains information that will help food retailers learn about Hispanic consumers, their attitudes toward shopping and their patterns of buying groceries for their families. Topics include spending patterns, primary-store satisfaction ratings and importance of products and services. The study also gathered data from consumers in San Juan, Puerto Rico. Research sponsored by Kraft Foods, The Procter & Gamble Company and Kellogg Company.

EXECUTIVE SUMMARY

U.S. Hispanics: A Vast and Diverse Market

The number of Hispanics in the United States skyrocketed by an astounding 58 percent from 1990 until 2000, making them the fastest growing population group and underscoring their growing importance to U.S. food retailers.

According to the U.S. Census Bureau, the number of Hispanics grew from 9 percent of the United States’ population in 1990 to 12.5 percent in 2000. More than 35 million people identified themselves in the census as Hispanic. In the same decade, the purchasing power of Hispanics grew by an even more remarkable 160 percent to $542 billion in 2001.

Many U.S. retailers view Hispanics and their growing purchasing power as a welcome new force in the food and consumer packaged goods marketplace.

To assist these retailers in understanding this burgeoning group of consumers, FMI undertook U.S. Hispanics: Insights into Grocery Shopping Preferences and Attitudes, 2002. The study contains information that will help food retailers learn about Hispanic consumers, their attitudes toward shopping and their patterns of buying groceries for their families.

One word of caution: Hispanics are not a homogeneous group. Their countries of origin are vastly different. They range from the Southern tip of Argentina near Cape Horn up the Western Hemisphere to the United States itself, eastward to the Caribbean islands and across the Atlantic to Spain. Some of these nations of origin are modern, industrial states and some are agrarian societies.

Hispanics may come to the United States with diverse backgrounds and widely varying educational and economic circumstances, but this study finds some elements that tend to unite them as a group.

Highlights of Findings

The food preferences and shopping practices of U.S. Hispanics will vary widely, depending on their level of acculturation. Acculturation — defined as the adaptation to the new cultural patterns of a dominant culture — plays a powerful role in shaping how Hispanic consumers behave. While there are many factors that determine and measure acculturation, language preference is one primary indicator that consistently reveals distinct, salient differences among Hispanic consumers. Thus, Hispanics in this study were segmented into the following categories: Spanish-Preferred, Bilinguals and English-Preferred. Although key differences arise among the groups, Hispanics, in general, strongly connect the centrality of family with the enjoyment of food.

How U.S. Hispanics View the Supermarket

Supermarkets are the most popular type of store for purchasing groceries. Panaderías (bakeries) and carnicerías (butcher shops), however, are frequented by more than half of Hispanic grocery shoppers. Although U.S. Hispanics shop the supermarket most often for groceries (4.3 trips per month) they still frequent other types of stores, especially panaderías (3.4 trips per month) and carnicerías (2.4 trips per month).

For Hispanic grocery shoppers, the most important aspects in deciding where to shop are fresh, high-quality fruits and vegetables; clean, neat store; courteous and friendly employees; low prices; and fresh, high-quality meats and poultry. Product freshness rates highly among Hispanics, especially for Spanish-Preferred since this group tends to cook fresh meals from scratch every day. Hispanic elements at the supermarket also rate very important with at least 68 percent of Hispanic grocery shoppers.

U.S. Hispanics are not as satisfied with their primary store as would be expected — only two in 10 gave an excellent rating. The lower rating for their primary store by a significant number of Hispanic shoppers shows that there is certainly room for improvement in satisfying Hispanic grocery shoppers. It should be noted, however, that no “poor” ratings were given.

Food retailers need to take a look at their stores to ensure they are offering what Hispanic shoppers seek. If supermarkets are to capture this market, they need to offer a variety of meats and fresh breads and Hispanic products. They also must have employees who speak Spanish and have knowledge about Hispanic products.

Shopping Habits

With larger households and lower incomes, Hispanic grocery shoppers tend to budget. They also plan their trip by looking for at fliers for specials and comparing prices at different stores. Although U.S. Hispanics bear these economizing behaviors, they still have higher-than-average spending patterns. Hispanic grocery shoppers spend an average of $117 per week on groceries. FMI’s Trends in the United States — Consumer Attitudes & the Supermarket, 2002 reports the average U.S. shopper spends $87 a week for household groceries. Moreover, according to FMI’s The African American Grocery Shopper, 2000, African American shoppers spend an average of $94 a week on groceries.

Hispanic grocery shoppers usually do not shop alone. More than half shop with an adult in their household and 15 percent shop with children. These companions highly influence their purchase decisions with 43 percent of Hispanic grocery shoppers indicating their spouse or significant other frequently does so. Four in 10 say their children also influence them.
Purchasing Behavior

In considering promotions and advertisements, food retailers need to realize that the type language used highly influences U.S. Hispanics when making purchase decisions. Forty-four percent of Hispanic grocery shoppers indicate that advertisements in Hispanic and Spanish-language newspapers frequently influence them compared with 31 percent of advertisements in English newspapers. Special displays at the grocery store also attract the attention of Hispanic shoppers with nearly three-quarters influenced by these.

U.S. Hispanics tend not to eat their evening meal away from home often, averaging only 1.3 times a week. These meals eaten at home are mainly prepared from scratch, stressing nutrition is important for their family. Tradition is also very important at mealtime. Eighty-five percent of Hispanic grocery shoppers indicate their most recent meal at home was traditional Hispanic.

Segmentation Analysis

Based on an analysis of shopping trip practices, shopping activities and attitudinal and lifestyle measures, Hispanic shoppers were also segmented into four groups: Economists, Loyalists, Pricehunters and Traditionalists. Economists tend to pay close attention to sales and stock-up on items when they find a bargain. Loyalists stay loyal to their primary store and are not heavily influenced by price. Pricehunters are cautious about their grocery expenditures and are price-sensitive. Traditionalists are the least acculturated of all segments and pay close attention to Hispanic elements at the supermarket.

Summary and Recommendations for Retailers

While food retailers should recognize the diversity of the U.S. Hispanic market, they should keep in mind key characteristics that this consumer segment considers important when shopping for groceries:

• Fresh, high-quality perishables
• Availability of Hispanic products
• Bilingual store employees
• Store employees that are knowledgeable about Hispanic products
• Advertisements in Hispanic and Spanish-language media
• Paying attention to family needs

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