Target turns to Hispanic shoppers to ensure the company’s future
Target executives are betting on young Hispanic adults to help shore up the company’s future.
The focus on this growing demographic comes as Target pursues a broad turnaround plan after a massive credit card hack breached consumers’ trust and a botched expansion into Canada hurt the company’s bottom line.
Luring more Hispanic shoppers could be profitable for Target. The group accounted for more than 60 percent of U.S. population growth between 2000 and 2015, during which time its purchasing power grew 207 percent, according to market research firm IRIWorldwide. That figure is expected to reach $1.5 trillion this year. The group is seen as particularly lucrative because 70 percent of Hispanics in the U.S. are under age 40 and therefore have a long life of spending ahead of them.
“As we stand here today and as we go forward into the future, our guest is going to increasingly be a Hispanic shopper,” Target CEO Brian Cornell said in a presentation to financial analysts earlier this week. “And we want to make sure we are taking that Hispanic consumer and converting them into future Target guests. So they play a very important role.”
To that end, the company is redefining its definition of a “core guest,” aiming at a more diverse segment of the population and focusing particularly on young Latinos.
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