Analyst: Latino grocery stores likely to see more deals
- Scott Moses, managing director and head of food retail and restaurants investment banking for Peter J. Solomon Co., said he sees a rise in Latino-focused grocers in the future, according to the Shelby Report.
- Private equity firm KKR recently invested in Cardenas Markets (currently operating 30 stores) and Mi Pueblo (operating 19 stores).
- Latino Americans comprise approximately 17% of the U.S. population in 2017. One generation from now, the number is projected to rise to 33%.
Pew Research Center data shows there were 55.3 million Hispanics in the U.S. in 2014. This number has ridden steadily over the last decade.
By 2060, the Census Bureau projects Hispanic people will comprise more than 28% of the total population with 119 million residing in the U.S.
With a growing population, it is no wonder that more grocery stores are catering to the Hispanic population.
A recent study by Nielsen revealed that Hispanic millennials are true to their heritage, attracted by cultural touchstones of smell, taste and familiarity. More than half — 61% — said they shopped at cultural supermarkets at least once over the past year.
Latino research and policy group the National Council of La Raza reported that Hispanics spend a larger share of their income on food than other ethnic groups, making them a sought-after demographic.
Latino-focused grocers offer a plethora of items that aren’t often found in traditional stores. They often carry items central to cultural cuisine like dried chiles, fresh masa and hominy.
They are also important to this community because many traditional grocers fail on a key factors often found at Latino grocery stores: a sense of culture and connection.
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