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Wal-Mart re-opens grocery stores targeting Hispanic shoppers

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Although Wal-Mart has customized certain sections of its stores in recent years to attract certain shopper demographics, the largest retailer in the world is going a step further. It plans to convert two of its Neighborhood Market grocery stores into food locations specifically targeting Hispanic shoppers. The markets: Phoenix and Houston.

It was only a matter of time. Targeting certain ethnic groups may be a way that Wal-Mart Stores Inc. (NYSE: WMT) can grow its grocery sales and somehow continue to rely on its strength of one-size-fits-all big-box stores while growing another business on the side. Targeting Hispanic shoppers is a no-brainer in certain cities where that demographic makes up a large portion of the population.

Notice, though, that Wal-Mart is not opening two new stores: it's converting two existing stores. If this idea doesn't work, it will be pretty simple to return to the original format.

With Wal-Mart's successful forays into the Mexican and Latin American markets (they are among the highest-growth markets internationally for the retailer), some believe Wal-Mart's move here will have built-in success.

I'm not convinced. For example, Hispanic shoppers are more and more becoming part of the "melting pot" that is America. They buy the same brands and many of the same products as other ethnic groups in America. But then again, changing signage and some (but not all) of the products to fit a certain ethnic group really is not a huge change for these two stores -- so maybe the experiment will show good results and then expand to other locations later in 2010.

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Last updated: November 27, 2009: 09:39 AM

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