How specialty chains are reshaping American shopping
Ethnic grocery chains, once confined to specific neighborhoods serving their respective cultural communities, are now aggressively expanding into mainstream markets nationwide.
This transformation signals a fundamental change in how Americans shop, eat and experience retail.
Asian brands lead the expansion
While local and regional Asian grocers have long been fixtures on both coasts — particularly in urban areas like New York and Southern California with large Asian populations — a new trend is emerging. Several of these chains are now expanding nationally, moving beyond their traditional strongholds into new metropolitan areas. H Mart, for example, began as a single neighborhood market in Queens primarily serving the Korean community. It has since expanded throughout the Northeast and evolved into a mainstream destination carrying food staples from across Asia alongside traditional grocery items.
With nearly 100 stores, H Mart’s footprint now spans the U.S. and Canada. Similarly, 99 Ranch started on the West Coast with a focus on Chinese and Taiwanese food. It has grown from its Southern California roots into a national chain of more than 60 stores, known for its live seafood, in-store bakeries and hot deli counters.
These chains now prioritize larger, regional locations such as power centers and regional malls in higher-income areas with diverse populations. Many operate food halls within their stores, transforming grocery shopping into an experiential retail and dining event.
Retailers like Northgate González Market, Cardenas Markets, and Vallarta Supermarkets have experienced re- markable growth across the Southwest and, increasingly, in unexpected markets. Their success comes from offering authentic products, in-store taquerías, and cultural experiences that attract a diverse customer base far beyond their initial demographic targets.
Their competitive advantage lies in combining authenticity with value. While traditional supermarkets stock a limited selection of international products, ethnic grocers offer a comprehensive assortment unavailable elsewhere. This appeal is particularly strong in today’s inflationary environment, where shoppers are actively seeking alternatives.
According to JLL’s Grocery Tracker 2026, private label sales grew 30% since 2021 to reach $282.8 billion, now accounting for over 21% of all grocery spending — a value-consciousness that ethnic retailers leverage effectively.
The trend extends to other specialty grocers. Middle Eastern and Mediterranean markets like Fresh Farms International Marketplace have established a significant presence in major metropolitan areas. Patel Brothers, which serves South Asian communities, operates dozens of locations across the country.
Attractive tenants with proven sales
For real estate, this trend presents clear opportunities. Ethnic retailers prefer adaptive reuse, targeting 20,000-to-50,000-sq.-ft. vacancies to accelerate market entry. Competition for these spaces is fierce, as grocery-anchored centers boast a low vacancy rate of just 4.0%. This has driven investor demand, with transaction volume surging 42% over the past year.
For landlords, these chains are attractive tenants with proven sales performance and an ability to draw diverse crowds. As institutional investment in grocery-anchored centers reaches record highs, properties featuring high-performing ethnic grocers are positioned to command premium valuations.
The mainstreaming of ethnic retail is a permanent shift. As consumers grow more adventurous and value-conscious, these retailers are poised for continued growth. For landlords, they are not just viable tenants but strategic partners capable of driving traffic and enhancing a property’s appeal, reshaping American shopping one market at a time.
Ken Shishido is the executive VP of JLL’s Retail Advisory Services unit.