The trend: Grocers are targeting diverse audiences with new store formats and expanded product assortments to keep pace with demographic shifts.

• Kroger plans to pilot two “Asian Experience” stores in North Texas next year, a spokesperson told the Dallas Times. These locations will showcase a wider selection of Asian products alongside fresh and shelf-stable items.
• Save A Lot partnered with Leevers Supermarket to test a Hispanic-focused discount grocery format, Ahorra Mucho, in Aurora, Colorado.
• Walmart is adding snacks from well-known Indian brands Britannia Industries and Bikano to its shelves for Diwali.

How we got here: Kroger, Walmart, and Save A Lot are each trying to broaden their appeal to shoppers, particularly in markets like Texas that have diverse audiences and are experiencing a significant population boom.

• The two locations Kroger chose for its Asian Experience stores—Denton County and Collins County—have seen a significant uptick in their Asian populations over the last several years.
• A similar line of thinking led Kroger to open its first Hispanic-focused store in Houston last year, which contains features like ceviche and juice bars alongside groceries from Central America, marinated meats, and a wide variety of Hispanic candies and snacks.
• Likewise, Ahorra Mucho is part of Save A Lot’s plan to develop Hispanic-oriented grocery formats in recognition of the growing size and buying power of the Hispanic population.
• Despite accounting for just 14% of US households, Hispanics are responsible for 16% of CPG growth, per Circana, with the demographic’s dollar and unit CPG sales outpacing those of non-Hispanic households.

Our take: Grocers have to take stock of demographic shifts to ensure they can meet the rapidly evolving needs of local consumers. At the same time, retailers must be careful not to paint with a broad brush, and recognize the nuances and diversity within the Asian and Hispanic communities—or any other demographic they wish to reach.