Latino Independents Got Boost From Vons Model

Latino markets like Vallarta owe a lot to an unlikely source: Vons.

From 1987 to 1994, Vons ran nine stand-alone Tianguis markets aimed at Latino consumers. Although the stores did not meet expectations and were eventually closed, the high quality of the supermarkets forced independent Latino grocers to improve their stores and merchandise, said Steven Soto, president and CEO of the Mexican American Grocers Assn.

At the time, most Latino markets were small carnicerias--meat markets--and the competition forced them to implement new technology, such as scanners, said Vallarta General Manager Mark Czerniakowski.

“Vons forced small Latino markets to change and take the complete step into the grocery store business,” he said.

Why did Tianguis fail? Industry observers offered several reasons, including stores that were too big (some were 60,000 square feet) to prices that were too high.

Whatever the reason, Soto said, Latino independents learned from the Tianguis model, incorporating into their stores similar formats in which restaurants, tortillerias and bakeries are housed under the same roof.