Kroger, Save A Lot experiment with demographic-focused store locations

As the US population diversifies, retailers like Kroger and Save A Lot are opening new stores catering to Hispanic and Asian consumers for a more personalized and engaging shopping experience.

Why it matters: Nearly three quarters (72%) of US adults don’t want to buy products from advertisers that ignore them, according to a September survey from iHeartMedia and Pushkin Industries.

• Though only 17% of Hispanic and 6% of Asian consumers report feeling ignored (neglected, forgotten, and disenfranchised by the media and most advertisers), it’s still beneficial for retailers to better understand them.
• 76% of Hispanic and 69% of Asian American and Pacific Islander adults in the US are more likely to purchase brands with diverse people, lifestyles, and cultures in their ads, per September 2024 data from Dentsu.

Moreover, 83.8% of US retail sales will occur in stores this year, per our forecast, making the physical store a crucial element for any retailer wanting to expand their presence.

The details: Save A Lot, in partnership with Leevers, recently opened Ahorra Mucho (which translates to “save a lot”) in Aurora, Colorado, to cater to the growing Hispanic population.

• “We have other locations in Colorado that serve the Hispanic population and do it well,” said Jon Koontz, chief operating officer at Leevers. “But the exciting thing about Ahorra Mucho is that we know that the consumer is here and the population is continuing to grow, so we have the unique opportunity to support them in a completely new way.”
• Ahorra Mucho will serve as a test-and-learn location for Save A Lot to gauge how consumers respond to new products, services, and store features.

Because authenticity is crucial for these formats, Save A Lot relies on its employees and customers to ensure the right mix of products and services.

“The vast majority, if not all, of our staff, are Spanish-speaking and can really relate to our customers and answer questions,” said Koontz. “We are continuing to work with our customers to find the right assortment and procure products they’re looking for.”

Meanwhile, Kroger will convert two existing Texas locations into Asian Experience stores next year to showcase more Asian-centric products.

• These Asian Experience stores join Kroger’s Hispanic Experience concept, which offers bilingual signage and an expanded selection of Hispanic-focused products.
• For its Asian Experience stores, “customers will see a decor package with updated signage and an expanded selection of multi-cultural products,” a spokesperson told The Dallas Morning News. “The grocery landscape in North Texas is hyper-competitive, and Kroger is working hard to stand out.”

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