Walmart Capitalizes on Hispanic Food Buying Power

by Susan Davis on 18/06/09 at 11:32 am

Walmart Loves Latinos

Finding authentic ingredients to make Mexican tamales or Argentinean chimchurri is getting easier.  That’s because the Hispanic and Latino population in the U.S. is growing at a fast clip – 3.2 percent between 2007 and 2008 – and retailers are taking notice. With Hispanics making up approximately one-sixth of the U.S. population, there’s a huge untapped market of consumers looking for items not readily available in mainstream markets.  Revamping corporate marketing plans to cater to the needs of Hispanics, who, according to the Food Marketing Institute, spend more money and do more cooking than the general population, can improve the bottom line for the merchants who respond to these trends.

Enter Walmart, the nation’s largest mass merchandiser.  They’re wasting no time converting two of their existing stores in the heavily Hispanic Houston and Phoenix areas to “Supermercados,” which are designed to cater to the shopping habits of Hispanic consumers.  It’s not just Walmart with Spanish-speaking employees and a few aisles of tortilla and beans.  This Supermercados emulate the shops that Latino-Americans remember from their homelands, replete with specialty meats, vegetables and bakery items.  Houston’s Supermercado de Walmart opened April 29 and is far exceeding sales expectations.  The Phoenix outlet opened last week.

Sam’s Club, the warehouse subsidiary of Walmart, is also trying a Latino-themed wholesale club in the Houston market.   Called “Mas,” when the 143,000 squart foot store opens July 2, it will offer fresh produce and a full-service meat and seafood counter, plus carry a selection of Hispanic foods and international brands including beverages, spices and candy for both family use and small-business resale.  “Mas” will also provide medical and financial services.

A study of Hispanic buying power by Oklahoma State University found that Hispanics spend a larger portion of their household incomes on food - $128.50 per week compared with $91 for non-Hispanics.