Hispanic grocery stores find booming market in Valley
Hispanic grocery stores – with their vast arrays of peppers and Mexican sweet breads – are steadily opening across the Valley, driven by an explosion in the population they cater to.
Garcia's Market opened Thursday in Kerman. And just this spring, Sylmar-based Vallarta Supermarkets opened its fifth store in the central San Joaquin Valley, this one in Tulare.
"I'm sure there's going to be more," said Shane Anderson, a Commercial Retail Associates retail broker who helps landlords sign with retailers.
"Several of them we're talking to have been up touring the Central Valley. It's a matter of time before they start making deals."
The interest from Hispanic grocers is far greater than that expressed by conventional grocery stores, he said. Traditional stores, which typically like to locate near new housing tracts, are waiting on the sidelines for building to bounce back, he said.
But Hispanic supermarket chains both big and small are realizing there is money to be made as the Hispanic population explodes.
Rapid growth
Hispanics are the majority in the Valley, according to census data released this spring, fueled by a big jump in the under-18 population.
The buying power of Hispanics nationwide is expected to grow by 50% between 2010 and 2015 to $1.5 trillion – a rate that eclipses all other racial and ethnic groups and overall spending growth, according to a yearly study by the Selig Center for Economic Growth at the University of Georgia.
Although many Valley Hispanics have lower incomes than their non-Hispanic counterparts, they spend a greater percentage of their income on food, according to Mintel, a national market research company.
That's because Hispanics tend to have larger families, said Leylha Ahuile, a Mintel senior analyst.
Rebeca Garcia of Fresno, for example, shops for her family of six at El Super at Tulare and First streets in Fresno. Last week, she left with a cart piled high with food, including canned jalapeños, a large bag of apples and two trays holding 24 eggs each.
All that food will last one week, she said.
"It's cheaper than other places," Garcia said of El Super. "They have good specials."
Anderson, the retail broker, says the Hispanic niche of customers still is underserved in the Valley.
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What will cause this shift is the increase in a demographic group called "Latinos" or "Hispanics," when it is combined with our African-American, Asian-American and Native-American populations. As a child who grew up on Gerber baby and food and
"They want more options to do their grocery shopping." Other Hispanic grocers, including El Super and Rancho San Miguel, also have established a presence in the Valley. The stores sell many of the same products as traditional grocery stores,
City council members should be asking whether prevailing food cart regulations aren't crowding out legitimate business opportunities. If they are given the opportunity, I predict the new Latino residents will follow the Italian path to integration,
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At 6 pm today, there will be a dedication ceremony, with area churches, both Hispanic and American, invited. The day will include games for the kids, American and Latino food, music, traditional dancing and an open house. Casa de Oracion will have
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