Tuesday, October 23, 2007

Dave's Mercado

I could look at this from a exploitative perspective. I mean...is the store exploiting Latino consumers? Maybe, but instead I am looking at this with a David and Goliath lens. The comments for this article are hilarious at best. Found this article after reading about a local bookstore that had to close because of large retailers like Borders and Barnes. Sock it to Wal-Mart, Dave. I'm rooting for you!

Dave's Market uses Hispanic emphasis to counter Wal-Mart
Posted by Zachary Lewis
October 23, 2007 07:58AM


Wal-Mart may have the lock on low prices, but it doesn't necessarily speak the language of its customers.That, at least, is what Dave's Markets is counting on as it braces for life in the shadow of a retail behemoth notorious for putting smaller merchants out of business.A 217,000-square-foot Wal-Mart Supercenter is set to open Wednesday at Cleveland's Steelyard Commons. To compete, Dave's converted its store near Ridge Road and Denison Avenue into Dave's Mercado, a grocery for the Hispanic community.

Attempting to beat Wal-Mart's prices is "not a good business strategy," said Dan Saltzman, president of Dave's Markets, which is celebrating its 75th anniversary this year. "Going head-to-head with Wal-Mart on what they do best . . . has proven to be a very short-lived strategy. . .
"We felt it was more important to differentiate ourselves. We felt that that was the way to succeed."

At first glance, Dave's Mercado looks like any other newly renovated supermarket: clean, bright, well-organized.

"We tried to do it in a way that wouldn't be offensive to our [non-Hispanic] customers," Saltzman said.

But the differences aren't hard to spot. Signs are in Spanish as well as English. Employees wear badges reading "Yo Hablo Espanol" ("I speak Spanish"). Even the background music is Spanish.
Then there's the food itself. Plantains are available in the produce department, and at the deli, the takeout list includes red beans and rice. Goya products line entire aisles, not just a couple of shelves. There's goat in the meat area.

Saltzman said the company visited Hispanic groceries in Miami and New York City for insight into what Hispanic shoppers want.

Renovating the store -- one of 13 in the locally owned Dave's chain -- cost nearly $1 million, but the investment will be worthwhile if it helps Dave's hold on to its base, Saltzman said.

"Our best defense against them is to do what we do best . . . and hope our customers recognize the difference."

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