Recently I had the opportunity to get to know in-depth the Hispanic retail in Texas, which has a totally Mexican profile and is experiencing an impressive upgrade in several major supermarket chains.
Competition has been increasing for months. With the arrival of Chedrahui Group, through its subsidiary El Super – Bodega Latina which acquired the Fiesta Mart chain, the important growth of Supermercados El Rancho was also added, as a result of the entry of the Albertsons group with a strong investment in the company.
If we add to these developments to the already consolidated chains such as H-E-B’s Mi Tienda, La Michoacana Meat Market, El Rio Grande, we clearly see how Hispanic retail players are the leaders in Texas.
Some analysts predict that the Hispanic retail segment is well consolidated to make all these investments in regional retailers.
Larger supermarkets can negotiate better wholesale prices, credit card rates, insurance, and the general cost of financing. Therefore, stores can invest more money in new openings, renovations, and training of their employees
We can also assure that within the Hispanic retail in Texas, grocery chains are segmented according to a defined target of customers.
For instance, El Rancho, which currently has the lowest and most aggressive price leadership in the Texan market, has impressive visual staging in each of its stores, such as colored games, according to the sections of the stores you visit, highly personalized shopping experience and exceptional customer service.
It also offers a wide assortment of products from the leading brands in the market and with the potential development of its Private Brand “El Rancho.”
This has been a clear example that despite offering aggressive prices in the market, neither the quality of its products nor the perfect customer service has been renounced.
On the other hand, other stores visited and evaluated that supposedly have a superior target of customers, do not meet any of these good qualities and should improve immediately to remain at the forefront of the Hispanic market in Texas.
What I have experienced in Texas is an unequivocal signal to me of what will happen throughout the U.S. Hispanic retail in the coming months and years: a potential growth in stores, assortments, billing, and professionalization of our entire sector.