Hispanic Shopper Dollars Are in High Demand

Buying power of the group is expected to reach $1.5 trillion this year.

April 07, 2015

NEW YORK – As the Hispanic population shoots up and buying power increases, U.S. retailers are increasingly vying for this audience's attention. Some have shifted more of their efforts to digital in light of how Hispanics consume media, while others have adopted creative strategies and added products aimed squarely at the market, writes Ad Age this week.

U.S. Hispanic buying power is poised to hit $1.5 trillion this year – a 50% increase from 2010, according to Nielsen. "Retailers and manufacturers can't afford to ignore multicultural consumers such as Hispanics. They are transforming the U.S. mainstream," Eva Gonzalez, exec director-diverse consumer intelligence at Nielsen, told the advertising industry publication.

Large retailers like J.C. Penney, Macy's and Target are upping their efforts to better connect with the Hispanic demographic. For instance, as part of its recent turnaround strategy, J.C. Penney looked to reposition itself as a department-store destination for Hispanics, in part through promotions and an ad campaign based around last summer’s World Cup, among other efforts. 

Target is also deepening its relationship with Hispanic consumers, says Ad Age. To engage shoppers on a more emotional level, the retailer recently launched a campaign that highlighted Spanish terms and moments that have no direct English translation and are unique to Hispanic consumers.

Closer to home for the convenience industry, Maverik Executive Director of Marketing Ernie Harker recently shared the efforts that the Utah-based convenience store chain has implemented to attract Hispanics, one of their five core customer segments. In his presentation at the NACS Leadership Forum, Harkin described the Hispanic audience as one of the more challenging for the company, due in part to a cultural disconnect that has taken trial and error to overcome. However, through “failed” promotions, Maverik learned key characteristics of the audience and is now able to focus marketing efforts on the lifestyle aspects that appeal to the demographic, such as a focus on family-based activities and loyalty incentives. The company has also started including Spanish language promotions and loyalty programs.

Be Among the First to Learn More
More insights about multicultural consumers and how the convenience and fuel retail industry can capture the purchasing power of these shoppers will be presented during the upcoming NACS State of the Industry Summit, April 14-16 in Chicago.

At the State of the Industry Summit, Juan Carlos Davila, Nielsen Hispanic market senior vice president and general manager, will discuss how investing in multicultural consumers can help convenience retailers ensure that they will remain competitive and relevant in this growing demographic.

Registration for the NACS State of the Industry Summit is complimentary for up to three individuals per retail member company, if your company submitted data for the NACS State of the Industry Survey. For more information, visit soisummit.com.

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