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Retailers Take A Hit As Harassment Fears Cause Hispanic Buyers To Curb Discretionary Spending

The country’s second-fastest-growing ethnic group has reportedly cut back on discretionary spending as fears of harassment are exacerbated amid the new administration's immigration crackdown. As a result, many within the Hispanic community have only been heading out to purchase essential goods.


Online spending by Hispanics remained steady during the first half of the year. While food and essential goods continued to rise, consumer companies like big-box, apparel and footwear retailers along with auto parts makers noticed a marked decline in activity, Reuters reports.

According to the report, the declines have been particularly prevalent in border towns across the U.S., where worries about harassment by immigration or law enforcement officials are heightened.

The Hispanic community has long been a focus for big-box retailers because of its strong influential power when it comes to fashion, food, music and entertainment.

On average, the Hispanic demographic is also younger than non-Hispanics, has more children and spends more money on their children.

Last year, Hispanic spending reached $1.4 trillion, a large portion of which was on apparel and footwear, which are two areas where retailers are hurting the most under the current conditions, Reuters reportsWith back-to-school footwear seeing a double-digit decline this year, experts are concerned this could be an indication of how the holiday season will go.