Las Vegas Business Press :: News : Hispanic groceries battling for Latino dollar

Hispanic groceries battling for Latino dollar

Mariana's Supermarkets will anchor Cheyenne Pointe

BY ARNOLD M. KNIGHTLY

The large increase in the Hispanic population of Clark County has helped propel the region into one of the fastest growing areas in the country. By some estimates, 400,000 Hispanics currently live in the valley.

As fast as the population grows, Hispanic grocery stores seem to keep pace. While West Las Vegas has had trouble luring stores to its neighborhood, the residents directly on the east side of I-15 have many options from which to choose.

Soon the area, which contains a large portion of the North Las Vegas redevelopment area and is 85 percent Hispanic, will add two more locally owned grocery stores that cater to the Hispanic market.

The Hispanic market is hot-hot-hot when it comes to grocery buying.

On a hot, breezy July morning, North Las Vegas city officials broke ground on what Mayor Michael Montandon described as the first large-scale project in the city's redevelopment zone. Covering 9.3 undeveloped acres on Cheyenne Avenue east of I-15, Cheyenne Pointe retail center is an $18 million project that will be anchored by Las Vegas-based Mariana's Supermarkets.

Attended by owner and founder Hipolito Anaya, along with son and director of operations, Ruben Anaya, the groundbreaking was also catered by the grocery store chain.

STARTED AS TORTILLA MAKER

Scheduled to open the first quarter of 2007, the 30,000-square-foot grocery store will mark the fourth location for the company that started as a tortilla-making business 17 years ago. It will be located 11/2 miles from another locally owned Hispanic grocery store currently under construction, La Bonita.

Ruben Anaya refers to Mariana's Supermarkets as an independent grocery store chain, but admits that his customer base is 90 percent Hispanic. "That's why we're at the position we're at now, because of our customers," the 28-year-old said. "Our base is Hispanic and we've done awfully well because of it. Every store that we open gets a little bit easier. You learn from your mistakes."

In 1989, Mariana's Tortilleria started operations in a retail complex on the southeast corner of Eastern Avenue and Bonanza Road. Hipolito and wife, Ana Maria, relocated from Los Angeles to help Ruben's aunt and uncle start the business (Mariana's is the combination of the two women's names, Marie and Ana).

The initial idea was to sell the tortillas to grocery stores and casinos, and a year later, it expanded and started to offer Hispanic-focused groceries and hot food. In 2002, the Anayas opened their first Mariana's supermarket -- a 31,000-square-foot store at Sahara Avenue and Valley View Boulevard, that included a small dining area called La Cocina (The Kitchen). Today, with 120 employees, the location is rumored to do $500,000 a week, but Ruben Anaya says the number is not quite that high. Mariana's Supermarkets' most recent addition came in August 2004 with a 25,000-square-foot store at Eastern Avenue and Flamingo Road. The Anayas own El Taquito Mexican Restaurant on Eastern and Bonanza, along with two rigs that travel to California six days a week to pick up produce and other staples. Ruben Anaya said all the family's business operations brought in approximately $40 million in revenue in 2005.

Although Ana Maria has stepped back from the business, Hipolito is still involved with the daily operations, as well as other members of the family.

"That's one of the reasons why we've been so successful," said Ruben Anaya. "We've grown to where we're now because, if myself, my brothers, my sister didn't want to do this, if we wanted to become lawyers and doctors, we wouldn't have given the support to our parents to help them grow to where we're at now."

STRIP HOTELS

Although it no longer sells its tortillas to competing grocery stores, the Tortilleria still has numerous Strip hotel accounts that include Wynn Las Vegas, Treasure Island and MGM Grand.

The Cheyenne Pointe store, which will cost $3 million to build, equip and stock, will add 100 jobs (it already boasts 300 employees) to the company payroll. Mariana's also hosts a one-day "Los Posadas" at its Sahara Avenue store. Based on a Mexican Christmas tradition that normally lasts a few weeks, the Anayas hire musicians and offer prizes and food in a carnival-type atmosphere. The highlight of the day is the distributing of toys to the children. Ruben Anaya said that last year was the first year the family had held "Los Posadas," but they plan to make it a yearly tradition.

The competition for the Hispanic grocery dollar has grown more competitive during the past few years with La Bonita Grocery Store (three stores and a fourth under construction) and Supermercado del Pueblo (four locations). Throw in Los Angeles-based King Ranch Market, which has four locations, and the Latino grocery dollar is as competitive as Smith's vs. Vons.

Major national grocery chains, like Food 4 Less and Albertsons, are also recognizing the economic power of Hispanics. However, Ruben Anaya believes Mariana's Supermarkets will still hold an advantage in the community.

"They're big corporations," he said. "How do they know the recipes from Mexico for the hot food area? How do they know the kind of meat cuts Hispanics want? It's not the same. It's a different mentality of the way they do business and the way we do business."

aknightly@lvbusinesspress.com | 702-871-6780 x316

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