Fear of Immigration Raids Pushes Latino Consumers Toward Online Shopping: Report

In Latino communities across the United States, business owners and consumer companies are reporting a noticeable shift in shopping behavior, driven in part by heightened immigration enforcement under President Donald Trump.

Retailers, analysts, and local leaders say that fear of raids is reshaping daily routines, reducing store visits, and accelerating a move toward online shopping.

Interviews conducted by Reuters indicate that many Latinos — including several who are U.S. citizens or legal residents — have become more cautious about public outings. Mark Mathews, chief economist at the National Retail Federation, said the move toward online retail "is unsurprising given concerns over changing immigration policies and their enforcement."

In Newark, New Jersey, electronics shop owner Rosa Ludena told the outlet that foot traffic in the city's heavily Latino Ironbound district has declined sharply since a high-profile raid in January. "In this area, it's a lot of Hispanics, and they are afraid to go out because of immigration raids," Ludena said. She worries that continued declines will make it harder to keep up with rent.

Reports from other regions reflect similar patterns. Oliver de la Garza of Proyecto Azteca said vendor numbers at a South Texas flea market were cut in half following an enforcement operation.

Though Reuters could not independently verify those figures, major consumer brands have described broader headwinds linked to Latino shoppers. Heineken CEO Dolf van den Brink told investors that "what's happening with immigration, the ICE raids," has left Latino customers "highly disrupted."

Kantar survey data cited by Reuters shows Latino visits to mass retailers falling nearly 15% year over year between April and June, a sharper decline than among other demographic groups. Dollar-store visits from Latinos dropped almost 6% during the same period, even as those chains saw an increase in traffic from non-Latino shoppers. Julie Craig, a vice president at Kantar, said that even legally residing Latinos "fear being harassed" or "singled out," contributing to behavioral changes.

Large retailers without strong online platforms appear to be among the most affected. JD Sports CEO Régis Schultz said its Shoe Palace chain, which caters heavily to Latinos, saw a "huge decline in traffic" earlier this year. Analysts at Gordon-Haskett found that Ross Stores locations in Latino-heavy areas also experienced falling visits, with Walmart's website absorbing much of the shift.

The trend fits into a broader economic slowdown among Latino households documented by Bloomberg in September, which found that consumption in the group barely grew in the year through June. Analysts attributed the slowdown to rising prices, tighter budgets, and the chilling effect of immigration enforcement. As one Newark restaurant owner told Bloomberg, "Fear is in the air," and the result is fewer customers on the streets.