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FEATURES The Clout of U.S. Hispanic Mall Shoppers


Population Gains Augur Well JOHN CONNOLLY*


Abstract: As Hispanics’ share of the population continues to grow in the United States, their impact is being increasingly felt in consumer expenditures. These shoppers spend a larger portion of their income than non-Hispanics. In contrast to their counterparts, Hispanic men and women spend nearly the same amount at malls per visit, and Hispanic spending does not always increase as income increases.


The Growing Hispanic Segment Strong population and income growth bode well for the


aggregate spending of the Hispanic1 consumer. Between 2007 and 2011, the Hispanic population grew by 11.4%, which was 8.3 percentage points (pp.) faster than the nation. In 2011, the Hispanic population accounted for 16.3% of the U.S. population and is projected to account for 19.1%, or nearly one-fifth of the U.S. total, by 2020.2 Household income also has been growing faster than the nation. Over the five years ending in 2011, Hispanic income grew by 3.9%—outpacing non-Hispanic income by 2.7 pp. This combination of strong population and income growth also bodes well for mall spending, which will be explored for the Hispanic consumer.


The Difference the Hispanic Consumer Makes U.S. malls will likely benefit disproportionally from the


growing share of the Hispanic population, if their spending trends remain consistent with today. Despite earning almost $20,000 per household less annual income than non-Hispanics, they spent 9.9% of their annual expenditures at malls compared with only 8.8% for non- Hispanics, as shown in Table 2-1. Based on exit interviews conducted in 2012,3 U.S.


Hispanic shoppers average 3.9 mall visits per month, as shown in Table 2-2. During each visit they stay on average 91.2 minutes and spend $91, which equates to an estimated $4,203 at the mall per year.


Table 2-1


2012 Share of Annual Average Expenditures Total


Income After Taxes Total Annual Aggregate Spend Total Annual Mall Aggregate Spend


Mall Spending as a Share of Expenditures


$62,944 50,631 4,485 8.9%


Hispanics


$47,949 42,443 4,203 9.9%


Non-Hispanics


$65,123 51,820 4,538 8.8%


Sources: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, March 2013, Table 2200: 3rd quarter 2011 through 2nd quarter 2012; ICSC Research.


* Research Project Manager, International Council of Shopping Centers 1 The following definition appears in Sharon R. Ennis, Merarys Ríos-Vargas, and Nora G. Albert, The Hispanic Population: 2010 (2010 Census


Briefs), Issued May 2011, C2010BR-04, p. 2: “ ‘Hispanic or Latino’ refers to a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of race.” That definition derives from the U.S. Office of Management and Budget’s 1997 Revisions to the


Standards for the Classification of Federal Data on Race and Ethnicity. 2 Numbers for 2007 and 2011: U.S. Census Bureau, Current Population Survey: The Hispanic Population in the United States: 2007, Table 1: “Population By Sex, Age, Hispanic Origin, And Race: 2007,” and Current Population Survey: The Hispanic Population in the United States: 2011, Table 1, “Population By Sex, Age, Hispanic Origin, And Race: 2011.” Projections for 2020 are contained in U.S. Census Bureau, Population Division,


Table 4: Projections of the Population by Sex, Race, and Hispanic Origin for the United States: 2015 to 2060. All links retrieved August 5, 2013. 3 The sample consisted of 12,000 exit interviews conducted in regional and super-regional malls owned by General Growth Properties, Macerich, Simon Property Group and Westfield Corporation. Several tests were done to determine whether results were affected by the varying sample size of each participating company. The data revealed no major statistical difference between the national aggregate and a weighted average based on an average of spend per visit by each participant equally ($97.32 and $100.25, with $195.00 for the standard deviation, a measure of the dispersion of a set of data from its mean). This relationship was also seen at both income ($99.90 and $102.50, with a standard deviation of $198.35) and age ($96.40 and $91.40, with a standard deviation of $194.50) levels. Throughout this article, tables show common samples (i.e., sample sizes matched) for all items reported. Tables in the Appendix report the individual sample summary statistics.


INTERNATIONAL COUNCIL OF SHOPPING CENTERS 1 6 RETAIL PROPERTY INSIGHTS VOL. 20, NO. 2, 2013


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