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Multicultural merchandising is the key
What it means to be an American cannot be described without taking into account the diverse ethnic backgrounds of those who have made this country their home, both in recent years and during the immigration wave of the 1900s. As the United States becomes even more ethnically diverse, especially with booming population segments such as the Hispanic demographic, retailers are learning that success lies in effectively merchandising to ethnic tastes.
Growth of the Hispanic population in particular has challenged retailers to rethink how they market to this large group, which in itself is also diverse based on country of origin. Nearly 14% of Americans are Hispanic, a ratio that is expected to near 16% in four years. Other large ethnic groups include African-Americans, at 12.8%, and Asians, at 4.1%.
While ethnic merchandising commonly is implemented at a market- or store-specific level, larger-scale programs are increasingly gaining popularity, such as Hispanic-targeted apparel lines Lucy Pereda at Sears, Daisy Fuentes at Kohl's and Thalia at Kmart.
When it comes to food, one of the biggest categories in which multicultural merchandising pays off, retailers have learned that a customer's heritage holds significant sway. Despite the appeal of "American" mainstream foods such as steak and potatoes, many shoppers still prefer the dishes of their home country.
"Customers enjoy the items they grew up with and look for those specific brands as well, and we want to do what we can to get those selections on our shelves in the communities where there is a demand," said Karen Burke, a spokeswoman for Wal-Mart Stores.
Burke said Wal-Mart tailors its food assortment to suit the different tastes of its customers as part of its "store of the community" strategy. Among its targeted food offerings by store or market are selections in Hispanic, German, Indian, Asian and kosher foods, along with specific Hispanic food tastes broken down even further by country of origin. Authentic Hispanic food brands such as Maseca flour, Jumex, Valle and Kerns fruit nectars, Las Costena and...