Dive Brief:
- In Dallas, City-Data.com reports there are more Hispanic residents than people of other ethnicities. As a result, retailers including La Michoacana, Fiesta Mart and El Rio Grande Latin Market are expanding to try to appeal to these shoppers, according to the Shelby Report.
- “These grand reopenings…are another way to solidify our commitment to serve our local communities through excellent customer service, great values and a wide variety of international and specialty food options,” Fiesta Mart CEO Michael Byars said.
- The Pew Research Center said the population of Dallas-Fort Worth registered 7.3 million in mid-January, an increase of more than a million people since the last U.S. Census in 2010, according to the Shelby Report. The number includes approximately 500,000 unauthorized immigrants.
Dive Insight:
The U.S. Census reports the Hispanic population reached 57 million in 2015, representing approximately 18% of the country's population. This level is expected to increase to 24% by 2040.
Nielsen research reveals that multicultural groups spend as much as 4% more in fresh grocery store departments than white non-Hispanics, so it only makes sense that grocery retailers desperate for growth are catering more to this segment of shopper.
Bill Bishop, chief architect of Brick Meets Click, said the industry is seeing an emergence of stores focused on certain ethnic groups, with a “strong and continued appeal to the Hispanic community.” Grocery analysts agree that more companies are expected to appeal to this market as the Hispanic population continues to rise.
Last year, Southeastern Grocers converted five of its South Florida Winn-Dixie locations into Hispanic-focused Fresco Y Mas stores, offering Hispanic shoppers authentic ingredients for their shopping needs. A challenge for many Hispanics is that about 59% regularly shop at three or more retail locations just to find all the items they need for recipes. Non-Hispanic consumers also are seeking better ethnic food offerings with 65% of other shoppers saying they would cook more multicultural foods if supermarkets offered better variety.
As ethnic, spicy flavors continue to become more mainstream and desirable, additional retailers like Southeastern Grocers will follow to win a corner in this valuable retail space.