STOP AND COMPARE SUPERMARKETS PROVIDING ACCESS TO HEALTHY FOODS
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1 STOP AND COMPARE SUPERMARKETS PROVIDING ACCESS TO HEALTHY FOODS Hispanic American Chamber Institute 3 rd Healthy Foods Practitioners Symposium 9 March 2015 Federal Reserve Bank of Boston Guillermo Fernandez Retail Business Analyst
2 AGENDA Introduction Demographics Dependence On Government Subsidies Consumption Trends Take Aways 2
3 INTRODUCTION 3
4 WHO WE ARE We serve largely Latino and ethnic families in underserved neighborhoods 4
5 WE VE HAD A POSITIVE IMPACT ON THE COMMUNITIES WE SERVE Serve over 15,000 customers weekly 75% - 80% Latinos and other ethnic minorities Employ over 120 employees from 15 different nationalities Hire from the communities we serve Buy from local vendors - over $13 million annually From many small minority suppliers Committed to Healthy Eating initiatives Partner with MGH Chelsea on healthy eating research Invest in Bowdoin St. Health Center Wellness Program 5
6 DEMOGRAPHICS 6
7 NEW ENGLAND HAS SEEN A SPECTACULAR GROWTH IN LATINO POPULATION In the last decade, the population of Metropolitan Boston increased by 161,712 due to an increase in the minority population of 297,750. despite a decrease of the white population of 136,692. Metro Area Population Latino (%) % Change ( 00-10) Segregation Scores Rank Springfield, MA 153, Providence, RI 178, Boston, MA 625, Worcester, MA 181, Hartford, CT 124, Chelsea, MA 35, NA NA Lynn, MA 91, NA NA Lawrence, MA 76, NA NA 7
8 OUR CUSTOMERS ARE DIVERSE (Countries of Origin) RANK # CHELSEA LYNN #1 El Salvador Dominican Republic #2 Honduras Guatemala #3 Puerto Rican Puerto Rican #4 Dominican Republic Honduras / El Salvador #5 Guatemala Asian (Cambodian) #6 Colombian Anglo 8
9 STRESSED NEIGHBORHOODS CATEGORY Chelsea (S/B) Revere (SH) Boston (REFERENCE) Avg. Household size Population < 18 30% 24% 17% Population > 65 5% 7% 10% Foreign Born 55% 53% 27% Speak Other Language 83% 73% 36% People in poverty 32% 26% 21% Median Income $46K $49K $53K DATA SOURCE:THE NEIGHBORHOOD DEVELOPERS, CHELSEA AND REVERE S/B SHURTLEFF / BELLINGHAM NEIGHBORHOOD, CHELSEA SH SHIRLEY AVENUE NEIGHBORHOOD, REVERE STRESSED COMMUNITIES SHARE THE SAME BAD METRICS 9
10 DEPENDENCY ON GOVERNMENT SUBSIDIES 10
11 HEAVY RELIANCE IN FOOD STAMPS IN STRESSED COMMUNITIES 11
12 CONSUMPTION PATTERNS TIED TO EBT DISTRIBUTION 12
13 EBT sales account for 80% of total sales EBT IMPACT (PERCENT OF STORE SALES) In two weeks the sales turn to cash, since EBT is depleted towards the end of the month In Chelsea cash sales are higher, although EBT sales are constant thru the month. 13
14 CONSUMPTION TRENDS 14
15 DEPARTMENT PERCENTAGE OF SALES Chelsea (January 2015) 2% 12% 5% 27% Grocery Frozen Deli Produce Meat Heavy consumption of meat products 32% 17% 3% 2% HBA Dairy Bakery 15
16 FREQUENCY OF PURCHASES Department Customers Consumptions Grocery 70% Produce 54% Meat 44% Dairy 38% Bakery 26% Frozen 12% HBA 10% Deli 6% > 50% of customers who enter the store buy fruit and vegetable products 16
17 GROCERY BEST SELLERS Rank # Chelsea Lynn 1 CINCO DE MAYO TRTLLA GOYA TOMATO SAUCE 2 GOYA TOMATO SAUCE EVAPORATED MILK 3 MASECA CORN FLOUR CINCO DE MAYO TRTLLA 4 PEPSI-COLA DOMINO GRANLTD SUGAR 5 MANI DULCE CON AJONJ MASECA CORN FLOUR 6 DORITOS NACHO CHSE CARMELA CHKN/SSG/BLN 7 INSTANT SOUP RAMEN NDLS CHIC 8 COCA-COLA REGULAR COCA-COLA REGULAR 9 DOMINO GRANLTD SUGAR BUSTELO BRICK 10 OZ 10 MAGGI NOODLE SOUP DORITOS NACHO CHSE 18
18 A Caribbean staple PRODUCE BEST SELLERS Rank # Chelsea Lynn 1 GREEN PLANTAIN GREEN PLANTAIN 2 CORN YELLOW LIME/LIMON VERDE 3 YELLOW BANANAS YELLOW BANANAS A Central American staple 4 LIME/LIMON VERDE YELLOW PLANTAINS 5 YELLOW PLANTAINS YUCCA 19
19 Monthly Sales Chelsea & Lynn Combined 35,000 30,000 25,000 20,000 15, X more sales of plaintains than Coca-Cola THERE IS HOPE! 32,365 10,000 5,000 3,186 1,122 1,198 - GOYA TOMATO SAUCE DORITOS NACHO CHSE COCA-COLA REGULAR GREEN PLANTAINS 20
20 SOME TAKE AWAYS Latinos tend to reside in inner city (low income) high density neighborhoods Underserved communities with limited access to fresh healthy foods Heavy reliance on government subsidies (Food Stamps and WIC) for purchasing monthly food basket First and second weeks of each month comprise the majority of purchases Latinos are heavy consumers of meat and produce. Fruits and vegetables of native countries are essential part of their diet. Food consumption is driven by culture what they grew up eating in their native countries Hard to change habits Medium size inner- city supermarkets (such as Compare) offer good access to healthy foods in underserved communities Provide affordable prices Offer convenience and accessability to residents. Sustainable operations 21
21 Connect with Stop and Compare! Get the latest specials, tasty recipes, nutrition tips and coupons: Facebook.com/StopandCompare (Providence) Facebook.com/CompareLynn Twitter.com/StopCompare Sign-up to get our weekly specials by at stopandcompare.net Text alerts of special deals direct to Cell Phone
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