Study: Bicultural or Unacculturated Latinos Consumers Love Shopper Club Stores Like Sam's Club, Costco

Sam's Club, Costco Wholesale, BJ's Wholesale Club, and other shopper club stores across America are loved by Hispanic shoppers, who frequently seek out deals and discounts to ease the strain on their wallets.

Shopper marketing research indicates that Latinos are club influencers like no other, and at a national level, Latinos like to "go clubbing" because it benefits big families and small business ownership. Also, the shopping experience and "treasure finds" are important to bicultural and unacculturated consumers, according to data.

Latinos consumers ranked Walmart No. 1 and Target No. 2 when asked their top shopping destination over the past three months. Those establishments were followed by Costco and Sam, respectively. These places are frequented by Latinos because Hispanic families tend to be larger (3.4 persons per household) than non-Hispanic families (2.4 persons), and they tend to buy mayoreo (bulk or wholesale). Even non-club retailers, such as Kroger's Food 4 Less, cater to the common sense needs of Latinos, offering club packs across numerous categories.

The inclination toward club membership also services Latinos' proclivity for small business ownership. It's a fact that Latinos own a disproportionate percentage of American small businesses. GeoScape recently released findings that said that over the past seven years, Hispanic businesses have grown 42 percent -- at twice rate for all U.S. businesses. Whether it's a bodega, a shop or a restaurant, Hispanics rely on club circuit as their choice suppliers. Jetro's, an unconventional club, wholesales to more than 100,000 independent bodegas in the U.S.

The Hispanic shopper and the general market shopper shop differently, according to qualitative and quantitative research. For Hispanic shoppers, shopping is not a quick individual chore; instead it's something that is done in a pluralistic way. The in-store club experience is rather important because ambassadorship is a key influencer. Sampling is how countless Hispanic shoppers are introduced to new brands or categories.

Costco, in particular, has a reputation for extraordinary finds by impulsive Latino "treasure hunters." Data suggests that Hispanic shoppers are more so influenced while in-store or in a shopping mindset, rather than being swayed by brand ads on radio, TV, newspaper or Internet. The concept of "stretching the budget," whether it's an in-store find or advertised on the pre-store circular, is a key driver for Hispanics shopping multiple stores (2.8 stores per shopping excursion vs. 2.4 for the general market shopper). Bicultural or unacculturated Hispanic consumers have a more pronounced behavior when it comes to treasure hunting, i.e., winning the best deals at each store.

Linking with shoppers in the "club scene" can be trickier for CPG brands, consumer packaged goods, because of the inherent limitations on in-store execution. But, combining in-store sampling, pre-store direct marketing, purchase data targeting and digital advocacy in social media and virtual communities can be extremely effective for marketers.