Immigrants fear harassment in Trump's America so much it's started to damage the economy

Apparel and footwear companies are seeing the biggest pinch

Mr Trump has built a political career promising to remove undocumented immigrants from the United States (Darrin Zammit Lupi/Reuters)

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.”

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.