Opportunities in Laredo’s pp   Retail Real Estate       September 19, 2012
Why Laredo Is a Great           Real Estate Market• Great local Hispanic population  – Hispanics are a marketer’s dream• C...
The Majority of Laredo’s Population Is Hispanic   p              p         5%                             Hispanic        ...
Laredo is the Most “Hispanic” City in U.S.        Top 10 Markets by Hispanic Population - 2010 Rank      Market           ...
Latinos are a Marketer’s Dream• The “3 L’s”:  – Large population  – Lucrative  – Loyal
U.S. Latino Population is Exploding…                                 Latino Population in Millions                        ...
A Country Within a Country                            50.5 million Latinos in U.S.         •   Mexico                     ...
More Latinos than Canadians in Canada!
50.5 Million HispanicsOne in six U.S. residents is Latino            Source: 2000 U.S. Census
Among Children       Children,   1 in 4 is   Hispanic
Every 30 seconds, a Latino turns        18 in AmericaSource: NPR, Latino Mayor May Be A Glimpse Of Things To Come, Decembe...
Hispanics Driving Growth• More than half of the  growth in the total U S                      U.S.  population between 200...
Hispanic Population Explodes• Th 2010 Hi  The      Hispanic population count exceeded                  i       l ti       ...
A Population Trend that Can’t Be Ignored…          2010                                        2020                 16%   ...
Latino Growth from 2000 - 2010
In Texas, the Hispanic Population Will Eclipse        the Anglo Population by 2015       45%                              ...
Fountain of Youth?• Latino population is the youngest of all ethnic  groups• Mean age by ethnicity:   –   Latino       L t...
Foreign-Born Hispanic Adults are Majority                                     Foreign-Born                        40%     ...
Country of Origin for U.S. Hispanics                    3% 4%         11%                      Mexico        9%           ...
Country of Ancestry for                        Laredo Hispanics                        L d Hi        i                    ...
Hispanic Shopping Habits
Hispanic Buying Power is Growing Across               the Nation                           Projected Growth of Hispanic Bu...
Latino Households Spend              Nearly                                                                               ...
Latinos Make Fewer Shopping Trips,              But…              But                                Shopping Trips per Ho...
…Spend More Per Trip                                                  Dollars Per Trip                          $52       ...
Hispanic Grocery Store Shopping Trips are   More Likely To Be Socially Influenced             y              y• 40% of His...
Satisfying Others Important• Knowing that others will be  satisfied is the third most  important factor in deciding to  ma...
Hispanics Over-Index in Key Categories                         Top 10 Hispanic Product Categories             Purchase Ind...
Latinos Make More                           Frequent Trips to the                                            Mall         ...
Marketing to Hispanics Increases Revenue Growth• Study shows that for consumer packaged goods and their  retailers, Hispan...
Sales Tax Allocation Growing Steadily…                1% City Sales Tax Allocations                                       ...
Laredo’s (Mostly) Hispanic ResidentsAre Shopping More this Year Than LastYear!Sales Tax Revenue:• FYTD Oct-Jul ’12: $25 MM...
Increase in Sales Tax Allocation    Better Than Larger Cities                   g    Sales Tax Allocation For City, Transi...
Don’t Buy Border MythsD ’t B B d M th
Dispelling Key Border MythsBorders Are:• High Crime• Low Income• High Unemployment
Myth: Borders are High Crime Areas        “New data released by the FBI this week      confirm that border cities remain a...
El Paso, Texas                                                                   Laredo, Texas• Violent crime rate: 458.3 ...
Laredo’s Mean Income is Lower, But in Line                                 g         with Lower Cost of Living            ...
Laredo Unemployment is                                                g                            Below National Average ...
Being Near the Border is Good for Business!Consumer Base Increases with   Shoppers from Mexico
3.7 Million Non- Commercial            Non-Vehicles1.5 Million CommercialVehicles2.52 5 Million Pedestrians(Laredo’s Cross...
$37 Million inBridge Revenue(Laredo’s Southbound Crossings FYTDOct-Oct-Jul ‘12)                                ½ Million  ...
Revenue Increases Also Started    Since Last Fiscal Year        Laredo Southbound Bridge Revenues                         ...
Key “Semana Santa” Shopping Holiday    Shows Increased Traffic Into Laredo• Over the two-week period in  FY 2012 that incl...
Why Do MexicansCome to the U.S. To Shop?
Better Prices On Name BrandsBebe Jeans: $187.84    Bebe Jeans: $105.99Guess Bag: $124.71    Guess Bag: $96.00
Better Prices On Name BrandsGuess Bag: $113.73            Guess Bag: $88.00 Michael Kors Shoe: $234 51                    ...
More OptionsMichael Kors Items: 59          Michael Kors Items: 953
Access to Name Brand        Discount StoresOutlet Malls        Off-Price, Close Out and                       Discount Ret...
They Even Know When To Shop!Example: Mexican Black FridayShopperJorge Andrés Velasquez Gomez flew intoTijuana at night fro...
Anecdotal Comment“Every time my family comes from Mexico       y        y      yCity, they come to shop. They even comewit...
And Sh         A d Shop They Do!                  Th D !     CYTD ’12 They Have Declared$110 MM in Purchases              ...
And They Spend More In Laredo Than                Other Cities                      Manifesto Total Sales Amount CYTD ’12 ...
Laredo is Robust for Retail Real Estate• Great Local Consumers• Visiting Mexicans with  Money to Spend• Improving Economy
My Book Can Help!
#7 on the list ofBestselling Business Books of 2011
Reviewed & Recommended by Forbes, Fast    Company, The Street and BusinessWeek!        p yNamed one of th “T 5 B t B iN   ...
For more information about   Consumer trends and marketing, contact             Kelly McDonald at214-880-1717 or kelly@mcd...
Laredo retail real estate
Upcoming SlideShare
Loading in …5
×

Laredo retail real estate

241 views
205 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
241
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Laredo retail real estate

  1. 1. Opportunities in Laredo’s pp Retail Real Estate September 19, 2012
  2. 2. Why Laredo Is a Great Real Estate Market• Great local Hispanic population – Hispanics are a marketer’s dream• Customer base is supplemented by millions crossing the border to shop• Local economy is getting stronger – Retail sales are increasing – Lower unemployment than other markets
  3. 3. The Majority of Laredo’s Population Is Hispanic p p 5% Hispanic Non-Hispanic 95% Source: Synovate 2010
  4. 4. Laredo is the Most “Hispanic” City in U.S. Top 10 Markets by Hispanic Population - 2010 Rank Market Hispanic % 1 Laredo 95% 2 Harlingen/Weslaco/Brownsville/McAllen 88% 3 El Paso 78% 4 Yuma/El Centro 65% 5 Corpus Christi 58% 6 San Antonio 54% 7 Fresno/Visalia 51% 8 Palm Springs 46% 9 Bakersfield 46% 10 Miami/Ft. Lauderdale 45% Source: Synovate 2010
  5. 5. Latinos are a Marketer’s Dream• The “3 L’s”: – Large population – Lucrative – Loyal
  6. 6. U.S. Latino Population is Exploding… Latino Population in Millions 63.9 56 50.5 43.5 35.3 2000 2004 2010 2015 2020Source: Synovate 2010 /U.S. Census Bureau
  7. 7. A Country Within a Country 50.5 million Latinos in U.S. • Mexico 115.0 MM • U.S. 50.5 MM • Spain 47.0 MM • Colombia 45.2 MM • Argentina 42.2 MM • Peru 29.5 MM • Venezuela 28.0 MM • Chile 17.1 MMSource: Census 2010 & CIA World Factbook, July 2012
  8. 8. More Latinos than Canadians in Canada!
  9. 9. 50.5 Million HispanicsOne in six U.S. residents is Latino Source: 2000 U.S. Census
  10. 10. Among Children Children, 1 in 4 is Hispanic
  11. 11. Every 30 seconds, a Latino turns 18 in AmericaSource: NPR, Latino Mayor May Be A Glimpse Of Things To Come, December 12, 2010
  12. 12. Hispanics Driving Growth• More than half of the growth in the total U S U.S. population between 2000 and 2010 was because of the increase in the Hispanic population – A 43% Increase from 2000• M More growth f th from births bi th than immigration
  13. 13. Hispanic Population Explodes• Th 2010 Hi The Hispanic population count exceeded i l ti t d d the Census projections by 1 million• Growing 4X faster than the total population
  14. 14. A Population Trend that Can’t Be Ignored… 2010 2020 16% 20% Hispanic 14% A-A 14% Asian 61% 66% 4% 5% White Source: Synovate 2010
  15. 15. Latino Growth from 2000 - 2010
  16. 16. In Texas, the Hispanic Population Will Eclipse the Anglo Population by 2015 45% 45% 45% 41% 42% 39% Anglo 38% 40% Hispanic 35% Black Other 30% 25% 20% 15% 12% 11% 11% 10% 6% 6% 6% 5% 0% 2010 2015 2020 Source: 2008 Texas State Data Center’s Biennial Population Projections.
  17. 17. Fountain of Youth?• Latino population is the youngest of all ethnic groups• Mean age by ethnicity: – Latino L ti 27.9 27 9 – African American 32.0 – Asian 32.6 32 6 – White 38.6• Starting their lives as adults• Household needs changing rapidly g g p y Source: U.S. Census
  18. 18. Foreign-Born Hispanic Adults are Majority Foreign-Born 40% U.S. Born 60%Source: Synovate 2010
  19. 19. Country of Origin for U.S. Hispanics 3% 4% 11% Mexico 9% Central America Puerto Rico 4% South American 9% Cuba 67% Dominican Republic OthersSource: Synovate 2010
  20. 20. Country of Ancestry for Laredo Hispanics L d Hi i Mexico Other 20% Note: All other nationalities accounted for less than 0.5% 80%Source: Census 2000
  21. 21. Hispanic Shopping Habits
  22. 22. Hispanic Buying Power is Growing Across the Nation Projected Growth of Hispanic Buying Power +50% $1.5 $ $1 Trillion Trillion 2010 2015 Source: Center for Economic Growth, The Multicultural Economy,2010
  23. 23. Latino Households Spend Nearly Latinos Spend $17 Billion $12 Billion Annually on Household Each Year on Clothing Furnishings and Equipment Hispanic Households Spend $53 Billion for Food at Home Latinos Spend Hispanic Consumers Spend $6 Billion $ $7.5 BillionAnnually on Clothes for Their Kids Annually on Personal-Care ProductsSource: “Latino Consumers: Demographic Patterns and Spending Trends among Hispanic Americans”, 8th Edition, Jan ‘11
  24. 24. Latinos Make Fewer Shopping Trips, But… But Shopping Trips per Household 149 143 142 Hispanic - Spanish Preferred Hispanic - English Preferred White Non-Hispanic Source: Nielsen Homescan®, Total U.S., 52 weeks ending 12/25/2011
  25. 25. …Spend More Per Trip Dollars Per Trip $52 $51 $47 Hispanic - Spanish Preferred Hispanic - English Preferred White Non-HispanicSource: Nielsen Homescan®, Total U.S.; 52 weeks ending 12/25/2011
  26. 26. Hispanic Grocery Store Shopping Trips are More Likely To Be Socially Influenced y y• 40% of Hispanics shop with their immediate family – vs. 18% of non-Hispanics• Hispanics more likely to consider recommendations from friends or family members when making food purchases (36%) – Compared to non-Hispanics (22%) Source: “Hispanic Path to Purchase”, SmartRevenue & Univision, 07/31/12
  27. 27. Satisfying Others Important• Knowing that others will be satisfied is the third most important factor in deciding to make a food purchase for Hispanics, Hispanics behind taste and flavor – 59% of Hispanics cite “knowing others will lik it” as a f t when th ill like factor h purchasing a food (vs. 36% of non-Hispanics) Source: “Hispanic Path to Purchase”, SmartRevenue & Univision, 07/31/12
  28. 28. Hispanics Over-Index in Key Categories Top 10 Hispanic Product Categories Purchase Index: Share of Hispanic Dollars Divided by U.S. Household Dollar Share x 100Rank Category Hispanic Dollar Index1 Dried Vegetables and Grains 2212 Hair Care 1543 Shortening Oil 1524 Baby Food 1505 Women’s Fragrances 1496 Grooming Aids 1447 Disposable Diapers 1448 Family Planning 1429 Photographic Supplies 14210 Baby Needs 137 Source: Nielsen Homescan®, 01/02/2011 - 12/31/2011
  29. 29. Latinos Make More Frequent Trips to the Mall Hispanic Men Care More about Fashion Watches More Popular Among Latino Latinos Like to Consumers Buy ClothesSource: “Latino Consumers: Demographic Patterns and Spending Trends among Hispanic Americans”, 8th Edition, Jan ‘11
  30. 30. Marketing to Hispanics Increases Revenue Growth• Study shows that for consumer packaged goods and their retailers, Hispanic allocation accounts to about 34% of CPG change in top line revenue growth• The study analyzed the top 500 overall U.S. advertisers between 2006 and 2010, – Including approximately 39 Consumer Packaged Goods companies and retailers • including Coca‐Cola, General Mills, Ralcorp, Groupe Danone, Nestlé, Walmart, Walmart and Walgreens. Other companies analyzed include Clorox Walgreens Clorox, Unilever, Kimberly‐Clark, Target, Church & Dwight, CVS, Hormel, PepsiCo, Kellogg’s, Diageo, Pernod Ricard, Sara Lee, Fortune Brands, Rubbermaid, NutriSystem, ConAgra, Campbell’s, Hershey’s, Loréal and Estée Lauder, among othersSource: Association of Hispanic Advertising Agencies, May 2012
  31. 31. Sales Tax Allocation Growing Steadily… 1% City Sales Tax Allocations 26,935,220 15% Increase 23,471,293 FY Oct ‘09 – Sep ‘10 09 10 FY Oct ‘10 – Sep ‘11 10 11
  32. 32. Laredo’s (Mostly) Hispanic ResidentsAre Shopping More this Year Than LastYear!Sales Tax Revenue:• FYTD Oct-Jul ’12: $25 MM — $2MM over budget
  33. 33. Increase in Sales Tax Allocation Better Than Larger Cities g Sales Tax Allocation For City, Transit And Sports Venue For December ’11 vs. YAG13.1% 12.8% 10.3% 6.3%Laredo Houston San Antonio Dallas
  34. 34. Don’t Buy Border MythsD ’t B B d M th
  35. 35. Dispelling Key Border MythsBorders Are:• High Crime• Low Income• High Unemployment
  36. 36. Myth: Borders are High Crime Areas “New data released by the FBI this week confirm that border cities remain among the safest places to live in the United States”1 - U.S. Rep. Silvestre Reyes “El Paso and other cities and towns along theborder are consistently rated among the safest in the nation.” - President Obama 1. Note: In reference to the FBI Uniform Crime Report released in May 2011
  37. 37. El Paso, Texas Laredo, Texas• Violent crime rate: 458.3 per 100,000 • Violent crime rate: 495.5 per 100,000 — Comparable to Gresham, Ore. -- — Comparable to Abilene, Texas 458.4 per 100,000 -- 494 3 per 100 000 494.3 100,000• Murder rate: .8 per 100,000 • Murder rate: 3.9 per 100,000 — Comparable to Sterling Heights, — Comparable to Portland, OR. - Mich. -- .8 per 100,000 - 3.9 per 100,000)McAllen, Texas• Violent crime rate: 222.1 per 100,000 100 000 — Comparable to Garland, Texas -- 223.5 per 100,000• Murder rate: 3.7 per 100,000 — Comparable to Elgin, Ill. -- 3.7 per 100,000Brownsville, Texas ,• Violent crime rate: 312.7 per 100,000 — Comparable to Fullerton, Calif. -- 319.2 per 100,000)• Murder rate: 3 9 per 100 000 3.9 100,000 — Comparable to Portland, OR -- 3.9 per 100,000) Source: FBI Uniform Crime Report released in May 2011 as quoted by Governing.com on “Terror on the Border? Not Exactly.”, May 27, 2011
  38. 38. Laredo’s Mean Income is Lower, But in Line g with Lower Cost of Living Index U.S. 100 National 90 84 Average• U.S. Mean HH 80 75 Income: $68,259 $ , 70 60• Laredo Mean HH 50 Income: $51,380 40 30 20 10 0 Mean Cost of Income LivingSources: U.S. Census. 2010 American Community Survey 1-Year Estimates (Including Income and Benefits). Laredo, TXCost of Living Index, Areavibes.com.
  39. 39. Laredo Unemployment is g Below National Average July 2012 y• Considerable gains since rate peaked in 8.3% October 2009 at 9 3% 9.3% – Despite small increases in recent months 7.8% National LaredoSource: Bureau of Labor Statistics, July 2012
  40. 40. Being Near the Border is Good for Business!Consumer Base Increases with Shoppers from Mexico
  41. 41. 3.7 Million Non- Commercial Non-Vehicles1.5 Million CommercialVehicles2.52 5 Million Pedestrians(Laredo’s Crossings FYTD Oct-Jul ‘12) Oct-
  42. 42. $37 Million inBridge Revenue(Laredo’s Southbound Crossings FYTDOct-Oct-Jul ‘12) ½ Million Higher Than g Budgeted (Laredo’s Southbound Crossings FYTD Oct- Oct-Jul ‘12) 12)
  43. 43. Revenue Increases Also Started Since Last Fiscal Year Laredo Southbound Bridge Revenues $43,638,202 An $818K Increase $42,820,134 FY Oct ‘09 – Sep ‘10 09 10 FY Oct ‘10 – Sep ‘11 10 11
  44. 44. Key “Semana Santa” Shopping Holiday Shows Increased Traffic Into Laredo• Over the two-week period in FY 2012 that includes Holy Week, CBP issued 88,220 permits (March 28, 2012-April 10, 2012) at the Laredo Port , ) of Entry – Compared to the same two-week period in FY 2011 (April 13 April 26 13-April 26, 2011) when CBP issued 67,927 permits• This represents a 30%i ncrease in the number of I-94 tourist permits issued
  45. 45. Why Do MexicansCome to the U.S. To Shop?
  46. 46. Better Prices On Name BrandsBebe Jeans: $187.84 Bebe Jeans: $105.99Guess Bag: $124.71 Guess Bag: $96.00
  47. 47. Better Prices On Name BrandsGuess Bag: $113.73 Guess Bag: $88.00 Michael Kors Shoe: $234 51 $234.51 Michael Kors Shoe: $184 95 $184.95
  48. 48. More OptionsMichael Kors Items: 59 Michael Kors Items: 953
  49. 49. Access to Name Brand Discount StoresOutlet Malls Off-Price, Close Out and Discount Retailers
  50. 50. They Even Know When To Shop!Example: Mexican Black FridayShopperJorge Andrés Velasquez Gomez flew intoTijuana at night from Guadalajara, Mexico— a three-hour f flight. He planned his tripto give him just enough time to cross theborder and get in line for the midnightopening of stores at the Las Americasoutlet mall. Th mall i j t north of th tl t ll The ll is just th f theborder in San Ysidro. Velasquez Gomezwas still shopping at 8:30 in the morning. ©Katie Euphrat“It’s tiring, it’s exhausting," said VelasquezGomez, "but it’s really nice. It’s cool.”Source: Fronteras, “Mexican Consumers Flock to the U.S. for Holiday Sales” by Jill Replogle, Friday,November 25, 2011
  51. 51. Anecdotal Comment“Every time my family comes from Mexico y y yCity, they come to shop. They even comewith shopping lists from all of my extended pp g y family. Everybody saves all year just to come and shop in the U.S.” p - A.L. Garcia, Account Executive
  52. 52. And Sh A d Shop They Do! Th D ! CYTD ’12 They Have Declared$110 MM in Purchases Made in Laredo - Sales Tax Manifestos Note: Only reflects state funds, does not include local funds that were reimbursed. Only Source: State of Texas Economic Development and Tourism Office
  53. 53. And They Spend More In Laredo Than Other Cities Manifesto Total Sales Amount CYTD ’12 (Millions) 116.8 110.2 Note: Only reflects state funds, does not include local funds that were reimbursed 46.3 46 3 39.4 41.8 27.8 31.6 15.9 6.3 BROWNSVILLE EL PASO HIDALGO HOUSTON LAREDO MCALLEN MERCEDES SAN ANTONIO SAN MARCOSSource: State of Texas Economic Development and Tourism Office
  54. 54. Laredo is Robust for Retail Real Estate• Great Local Consumers• Visiting Mexicans with Money to Spend• Improving Economy
  55. 55. My Book Can Help!
  56. 56. #7 on the list ofBestselling Business Books of 2011
  57. 57. Reviewed & Recommended by Forbes, Fast Company, The Street and BusinessWeek! p yNamed one of th “T 5 B t B iN d f the “Top Best Business B k of 2011” Books f
  58. 58. For more information about Consumer trends and marketing, contact Kelly McDonald at214-880-1717 or kelly@mcdonaldmarketing com kelly@mcdonaldmarketing.com ©2012 McDonald Marketing 2700 Thomas Avenue Dallas, TX 75204 214-880-1717, Fax 214-880-7596 www.mcdonaldmarketing.com All rights reserved. No part of this material may be reproduced In any form without permission by the author.

×