Where Hispanics
Shop -
Hispanic Marketing Services
Hispanic OmniTel Retail Study reveals where
Hispanic Americans are shopping and why. Asked to name
their favorite store, Wal-Mart was far and away the top
selection at 36% with JCPenney, Sears and Target tying for
second place at 4%. While no one specific Hispanic store
was selected by a significant percent of consumers, 5% of
respondents named as their favorite a local store that
caters to Hispanic Americans.
The new study was conducted in February 2005 among 500
Hispanic Americans aged 18 and older nationwide via
telephone. Respondents were given the choice of completing
the survey in English or Spanish.
Asked which factors are most important when deciding where
to shop, Hispanic Americans cited the same priorities that
other Americans have when choosing retailers-convenience,
low prices, and a wide range of merchandise.
However, a critical second-tier of priorities that is
unique to the Hispanic market is cited by about half of
Hispanics as being "very important",
including store employees speaking Spanish, products
relevant to Hispanic consumers and Spanish language
signage. Following is a breakdown of factors considered
very important in choosing a shopping destination:
Low prices - 77%
Convenient location - 72%
Wide range of merchandise - 71%
Employees who speak Spanish - 54%
Products relevant to Hispanic consumers - 52%
Wide range of payment options - 47%
Spanish signage - 47%
Product packaging and labels in Spanish - 43%
Owner is a member of the local community - 34%
Based on priorities of Hispanic shoppers it is no surprise
that national discount chains such as Wal-Mart and Target
are frequented even more often than local stores that
specialize in serving Latino and Hispanic customers.
Asked about their retail shopping habits, following is a
breakdown of the types of stores respondents say they shop
in often:
National discount chain stores such as Wal-Mart or Target
- 61%
Local stores that specialize in serving Hispanic and
Latino customers - 37%
National home improvement stores such as Lowe's or Home
Depot - 37%
National mid-priced department stores such as Kohl's,
Sears or JCPenney - 31%
Specialty clothing stores such as the Gap or Old Navy -
19%
Electronics, entertainment or appliance stores such as
Circuit City or Best Buy - 17%
National upscale department stores such as Macy's,
Nordstrom or Lord & Taylor - 10%
Sporting good stores such as the Sports Authority - 8%
"The survey shows that mainstream national retailers such
as Wal-Mart and Target are highly attractive to Hispanics,
but that the key to differentiation stems from meeting and
delivering the unique needs of Hispanic consumers,"
explains Brad Fay, Managing Director, NOP World's Roper
Public Affairs. "To stand out with Hispanics, retailers
need to consider offering such things as Spanish-speaking
sales clerks, Hispanic-oriented merchandise, and Spanish
language signage."
Birthplace Impacts Shopping Priorities
Digging deeper into the Hispanic market, the study
uncovers significant differences between U.S.-born and
foreign-born Hispanic consumers. Foreign-born respondents
were significantly more attracted to the tailored
offerings of local stores specializing in serving Hispanic
customers with 42% saying they often shop in these stores
vs. 26% of U.S.-born Hispanics.
While both groups select Wal-Mart as their favorite store,
following is a breakdown of how their shopping priorities
differ based on the factors they select as very important
in deciding where to shop:
U.S.-born / Foreign-born
Low prices - 70% / 83%
Convenient location - 67% / 75%
Wide range of merchandise - 68% / 73%
Employees who speak Spanish - 33% / 69%
Products relevant to Hispanic consumers - 35% / 64%
Wide range of payment options - 35% / 55%
Spanish signage - 22% / 65%
Product packaging and labels in Spanish - 20% / 58%
Owner is a member of the local community - 28% / 40%
"One has to be careful to recognize that the Hispanic
American market is not a single market, but rather
consists of a diverse set of consumers based on
differences in language and country of origin, among other
factors," explains Fay. "Unless marketers carefully study
this segment, they take a significant risk of missing the
mark."
Hispanic Marketing Services
