The Big Opportunity.  ?Estas listo?

Retailers, more than most, spend the bulk of their time focusing on next week, next month, and, on rare occasion, next season.  This is the nature of the business.  However, this carries the risk that major, fundamental shifts in the retail environment can go unnoticed.  One of these shifts is happening today and, while retailers are aware of it, most do not seem to be reacting to it in a tangible way.  That shift is the growth of the Latin community in America and the impact it is having and will continue to have on the retail world.

This is not a secret.  A quick review of US Census figures reveals the following facts:

• Latinos are now the second largest consumer group in America (1 in 6 residents)
• US total population growth rate between 2000-2006 was 6%.  The Latino population grew at 3X that rate.
• The 2010 census is anticipated to count 50 million Latinos, 17% of the total population.
• It is projected that, by 2050, Latinos will represent a full third of the US population.

Well, so what?  As retailers, here are some more salient facts:

• Latino spending has grown from $200 billion in 1990 to over $1 trillion in 2010.
• Over this period, Latino expenditures have grown TWICE as fast as non-Latino customers.
• In certain major markets in CA, TX, NY, and FL, Latinos represent the majority of the customer base.

The point is that, with very few exceptions, the Latino customer will be a major factor in retail sucess or lack thereof, both now and in the future. 

Here's a high level checklist of questions about your positioning in the market relative to the Latino community:

• How well do you understand the Latino community - their preferences, their heritage, their interests and priorities, their shopping habits?
• Is there anyone in your organization with specific responsibility/authority to pursue the opportunity?
• How many Latinos are part of your management group?
• How much do you know about the relative size and population trends of Latinos in the markets you serve?  Do each of your stores in these markets have someone fluent in Spanish?  Is there bi-lingual signage in the store?  Are you advertising in Latino channels?
• How big a priority is this customer segment in your assortment planning, marketing, branding, and organizational planning?

Again, this is not a new discussion.  Every retailer I have worked with has discussed it.  And yet, actions have been rare.  Some retailers are beginning to get this.  Take a look at this current Macy's campaign.  Lo consiguen.  Usted?

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