Survey predicts Hispanics will spend 7 percent more during the holidays
Per individual, Hispanics are expected to spend an average of $985 during the 2014 holiday season—about 7 percent more than last year and almost 15 percent higher than the average spending expected from the general population. They also plan to do more shopping at traditional department and specialty stores.
Findings are part of an annual survey conducted by Brand Keys, a New York City-based brand loyalty and customer engagement research consultancy. In its 20th year, the survey involved 2,417 Latino consumers.
Sales in holiday and specialty stores will increase the most (23 percent), with 63 percent of Latinos planning to shop this channel. Traditional department store shopping will grow 10 percent, with 88 percent of respondents planning to frequent that channel. Six percent fewer Hispanics will shop discount stores, although the channel still commands the lion’s share (90 percent) of holiday shopping. Catalog shopping is also expected to decline, with almost all Latinos (98 percent) saying they plan to shop online.
Hispanics’ growing perchance for what are often upscale chains may stem from several factors. One is the growing affluence of many Latinos. And while less affluent Latinos may shop discount stores for everyday needs, they may be more likely to splurge when a gift is involved.
“Hispanic consumer expectations are up again this year,” said Robert Passikoff, founder and president of Brand Keys, Inc. “Brand trumps dollar value perceptions among this cohort. Retailers that can integrate some sense of Hispanic culture and store experience with all forms of outreach will likely find it to be a winning combination for this segment of the population.”