Fear and Commerce: How Immigration Raids Are Reshaping Hispanic Retail in America

In Newark’s Ironbound district, the hum of commerce has quieted. At Rosa Ludena’s small electronics store, shelves of phone cases hang untouched while foot traffic dwindles. For Ludena — a U.S. citizen who emigrated from Ecuador — the reason is clear. “People are afraid to go out because of immigration raids,” she says, glancing toward the street where federal agents once stormed a nearby fish market. “If sales decrease, how will I pay rent?”

Across the United States, a similar unease is spreading. A new wave of high-profile immigration raids under President Donald Trump has changed the rhythms of daily life in many Hispanic communities, prompting some shoppers to avoid public places altogether. Instead, they are turning to the relative anonymity of online shopping — a shift with profound economic consequences.

Analysts and community leaders say that fear, rather than preference, is accelerating digital commerce among Hispanics — a consumer group projected to wield $2.8 trillion in buying power next year, according to consultancy Kantar. The shift may seem like a natural extension of the e-commerce boom, but for small, family-run stores without a web presence, it is an existential threat.

Raids and Repercussions

The Trump administration has defended the enforcement campaign as a public-safety measure targeting criminal networks. Yet its reach has extended to places like Walmart parking lots, farms, and construction sites — and into the heart of Hispanic retail districts. A raid on Newark’s fish market in January sent ripples of fear through nearby neighborhoods; similar actions in Texas, California, and Georgia have disrupted entire local economies.

Oliver de la Garza of Proyecto Azteca, a nonprofit in South Texas, told Reuters that business at an Alamo flea market “slumped after an ICE raid” earlier this year. Where 500 vendors once sold goods, he estimates half remain. “These aren’t big businesses with websites,” he said. “They rely on face-to-face trade.”

Large corporations are also noticing. Heineken’s CEO, Dolf van den Brink, told investors in October that “immigration raids” have “highly disrupted” U.S. sales among Hispanic consumers. Retail chains such as JD Sports’ Shoe Palace and Ross Stores have reported similar declines in foot traffic across Hispanic-heavy markets, even as Walmart’s online sales climbed 26% between May and July.

Data Reflects a Social Divide

Kantar’s research shows Hispanic shoppers reporting fewer in-store visits than other groups — down nearly 15% year-on-year at major retailers — while online shopping among Hispanics reached 60% in the third quarter, its highest level on record. Julie Craig, a vice president at Kantar, said the change reflects more than convenience. “There is that fear of being harassed, and there is that fear of being kind of watched and singled out,” she said.

Even Hispanic Americans who hold citizenship or legal residency report a decline in their sense of safety. The fear has blurred distinctions between documented and undocumented residents, creating an atmosphere where visibility itself feels risky.

An Uneven Retail Economy

For small retailers like Ludena and the family-run Tien Rong Gift Shop down the street, the problem is structural. Competing with Walmart or Amazon on price or logistics is impossible, and most lack the capital to develop e-commerce platforms. “We can’t compete with the Walmarts of the world on price or an online presence,” said Shan, the shop’s manager.

Private equity firms are also recalibrating. Apollo Global Management, owner of Hispanic grocery chain Heritage Grocers Group, has reportedly considered selling the chain as fear of raids weighs on in-store sales.

Meanwhile, Trump’s approval among Hispanic voters has softened, falling to 32% in October, down from near parity in 2024. Support for his immigration policy has dropped from 50% in February to 42%, Reuters/Ipsos polling shows.

The Broader Market Signal

To economists, the pattern signals how social policy can shape markets. “A shift to online purchasing in certain communities is unsurprising given concerns over changing immigration policies,” said Mark Mathews, chief economist at the National Retail Federation. For investors and retail executives, the implication is clear: fear can move markets as effectively as technology can.

The administration, for its part, insists that enforcement will ultimately create “an environment in which all businesses can thrive.” But in Newark’s Ironbound and across dozens of similar enclaves, many entrepreneurs see a different reality — one where community ties and storefronts wither while anonymous digital platforms thrive.

The rise of e-commerce was always inevitable; the internet rewards efficiency. But its latest growth spurt in Hispanic America speaks to something more human — the instinct to seek safety, even in shopping. For the retailers left behind, the question is whether trust, once lost, can ever return to the street.