People of Color (POC) are a growing consumer demographic in the United States – especially in retail. As with any growing demographic, there are opportunities to cater to these groups in your retail store. Keep reading to learn more about POC spending power in retail and how it can help your store.
Black Consumers
Economists report that Black consumers’ spending power reached $1.8 trillion in 2024. This represents an incredible opportunity for retailers across the country to target this demographic in their advertising and merchandising. Furthermore, Black consumers hold very positive attitudes towards brands that prioritize diversity in their marketing. Companies like Walmart, McCormick, and Sprite are some examples of companies that effectively engage with their Black consumer base and has seen success because of it. Research the brands your store carries and ask yourself if those brands have a strong base of support from Black consumers or if their product advertising features a diverse array of people.
Hispanic Consumers
Hispanics are one of the fastest growing demographics in the U.S., and experts predict there will be just over 90 million Hispanic Americans in the year 2050. Due to this, you can expect an increasing amount of foot traffic in your store from Hispanic consumers. Hispanic consumers also tend to spend more in all product categories except for groceries and engage in leisure activities as a high level. To better cater to this demographic and net new and returning customers to your store, you should consider offering Spanish language services and targeted merchandising strategies, adapting product assortments and in-store services to meet Hispanic preferences. Recognizing the significant growth and influence of Hispanic shoppers is a huge factor for success in your retail store.
Asian Consumers
Asian consumers spent 11% more on retail in 2024 than the average U.S. household. If you aren’t considering your Asian consumers, this is your sign to start. According to data-driven marketing research firm Claritas, Asian consumers are much more likely to shop online compared to other demographics and a third of Asian shoppers say it’s important to visit or use social networking websites to receive exclusive offers, coupons, or other discounts. To better engage Asian consumers for your store, considering investing in an online presence and adopting an ecommerce platform to perform sales and transactions digitally.
Final Thoughts
Consumers of all racial demographics in the U.S. have considerable buying power and, if respectfully recognized and catered to, can be a strong base of recurring customers for your store.
Sources
- https://www.businessdasher.com/consumer-spending-statistics/#:~:text=The%20economic%20influence%20of%20black,touch%20an%20impressive%20%241.8%20trillion.
- https://blavityinc.com/black-buying-power/
- https://www.statista.com/statistics/251238/hispanic-population-of-the-us/
- https://spiegel.medill.northwestern.edu/hispanic-consumers/
- https://www.claritas.com/resources/asian-american-retail-report/#:~:text=By%202024%2C%20Asian%20American%20buying,than%20the%20average%20U.S.%20household
- https://multicultural.com/articles/report-asian-american-retail-behaviors/
retailconnection 