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Major US retailers are seeing a decline in revenues in predominantly Hispanic areas in the wake of Donald Trump ’s election, a concerning trend as the holiday season approaches.
Many Hispanics in the US aren’t leaving the house except to buy essential goods as a result of strict immigration policies imposed by the Trump administration. Worried they’ll be harassed by immigration or law enforcement officials if they are seen in public, Hispanic consumers are cutting back on discretionary spending, according to community groups, research firms, and retailers.
That consumer hesitance is affected America’s second-fastest-growing ethnic group, and is worrisome for companies that are already struggling across the economy. Retailers in border towns have been impacted more than most.
“They are staying home. They are going out less often, particularly around border towns in the United States,” Target CEO Brian Cornell recently said at a conference, according to Reuters. Mr Cornell was referencing a report composed by retail consultants NPD Group, which noted the decline in Hispanic discretionary spending.
The drop has been most noticeable in apparel and footwear sales, two areas where Hispanic shoppers make up a significant portion of buyers. In the first half of 2017, there was a double digit (“high teens”) drop in sneaker sales — a trend that impacts such major retail giants popular with Hispanics like Nike, Skechers, and Vans.
“It's certainly a good litmus test of how the holiday season is going to shake out,” Marshal Cohen, an analyst with NPD Group, said, remarking that back-to-school footwear sales had seen a double digit drop compared to a double digit rise last year. “That’s how powerful certain segments are, certainly the Hispanic market.”
Protestors rally at JFK Airport against Muslim immigration banShow all 20 1 /20Protestors rally at JFK Airport against Muslim immigration ban Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-1 Protestors rally during a demonstration against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
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Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-2 Protestors rally during a protest against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump singed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
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Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-3 Protestors rally during a protest against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump singed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
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Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-4 SAN FRANCISCO, CA - JANUARY 28: Demonstrators hold signs during a rally against a ban on Muslim immigration at San Francisco International Airport on January 28, 2017 in San Francisco, California. President Donald Trump signed an executive order Friday that suspends entry of all refugees for 120 days, indefinitely suspends the entries of all Syrian refugees, as well as barring entries from seven predominantly Muslim countries from entering for 90 days.
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Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-6 Protestors rally during a demonstration against the new immigration ban issued by President Donald Trump at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
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Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-7 NEW YORK, NY - JANUARY 28: Protestors rally during a demonstration against the new immigration ban issued by President Donald Trump at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
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Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-8 Protestors rally during a demonstration against the new immigration ban issued by President Donald Trump at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
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Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-9
Getty Images
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-10
Getty Images
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-11 NEW YORK, NY - JANUARY 28: Protestors rally during a demonstration against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
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Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-12 Protestors rally during a demonstration against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
Stephanie Keith/Getty
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-13 Protestors rally during a demonstration against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
Stephanie Keith/Getty
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-14 Protestors rally during a demonstration against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
Stephanie Keith/Getty
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-15 Protestors rally during a demonstration against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
Stephanie Keith/Getty
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-16 Protestors rally during a demonstration against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump signed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
Stephanie Keith/Getty
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-17 NEW YORK, NY - JANUARY 28: Protestors rally during a protest against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump singed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
Stephanie Keith/Getty
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-18 Protestors rally during a protest against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump singed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
Stephanie Keith/Getty
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-19 Protestors rally during a protest against the Muslim immigration ban at John F. Kennedy International Airport on January 28, 2017 in New York City. President Trump singed the controversial executive order that halted refugees and residents from predominantly Muslim countries from entering the United States.
Stephanie Keith/Getty
Protestors rally at JFK Airport against Muslim immigration ban jfk-protest-muslim-ban-20 Passengers wait in line to check in at the American Airlines terminal at JFK International Airport August 10, 2006 in the Queens borough of New York City. British authorities arrested 21 people and halted a anallegedly terrorist plot to use liquid explosives concealed in carry-on luggage to blow up airliners traveling between Britain and the U.S. Homeland Security chief Michael Chertoff said that the plot appeared to be directed at U.S. carriers flying out of Heathrow. such as United Airlines, American Airlines, Continental Airlines.
Stephen Chernin/Getty
Hispanic spending hasn’t dropped in every segment, however. But, while there has been a rise in spending on essential items, it is more timid of an increase than seen recently under the past administration. Nielsen consumer spending firm notes that consumer essential sales to Hispanics rose by just 0.6 per cent in the first half of this year, compared to 2.9 per cent during a similar period the year before, and 6.2 per cent the year before that.
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