In Newark’s largely Latino Ironbound district, business owner Rosa Ludena watches customers vanish from her electronics shop. For over two decades, she has sold phone accessories to her community, but now the aisles are quiet.
“People are afraid to go out because of immigration raids,” says Ludena, who emigrated from Ecuador in 1999.
Since President Donald Trump renewed his hardline immigration crackdown, high-profile raids — from Home Depot parking lots to farms and factories — have shaken Hispanic communities nationwide. A January raid on a fish market near Ludena’s store still haunts local shoppers.
The impact extends far beyond Newark. Flea markets, small retailers, and national brands alike report falling in-store traffic as Hispanic consumers retreat to online shopping, fearing ICE patrols and public scrutiny. “It’s unsurprising given concerns over changing immigration policies,” said Mark Mathews, chief economist at the National Retail Federation.
Retail surveys by Kantar show store visits by Hispanic shoppers fell nearly 15% between April and June, while non-Hispanic visits dropped only 4.5%. Online shopping, meanwhile, reached record highs — 60% of Hispanic consumers shopped online last quarter.
For small business owners, the shift is devastating. “These aren’t big companies with websites,” said Oliver de la Garza of Proyecto Azteca, a nonprofit in Texas. At an Alamo flea market, he said, vendor numbers have halved since a June raid.
Major brands are noticing too. Heineken and JD Sports both reported sales declines among Hispanic customers. Shoe Palace, which caters to Latino shoppers, saw foot traffic collapse earlier this year. “You can see definitively the impact of immigration policy,” said JD Sports CEO Régis Schultz.
Large retailers like Walmart — whose online sales jumped 26% this summer — are benefiting from the trend, while smaller stores lacking e-commerce channels are losing customers fast.
Even legal residents say they’re nervous. “There’s fear of being watched or harassed,” said Julie Craig, a Kantar vice president.
Hispanic Americans, who represent 19% of the U.S. population, have a projected $2.8 trillion in buying power next year — but fear, not spending potential, is shaping how they shop.