Thursday, June 12, 2025

Unrest Rehaping Latino Shopping Habits


Concerns over immigration policies are reshaping Hispanic consumers' shopping habits. 

The Wall Street Journal reports the Trump administration's aggressive deportation efforts targeting undocumented immigrants have instilled fear in many Latinos, including those with legal status, who worry about encounters with immigration authorities. As a result, many are limiting public activities, cutting back on routine shopping and dining out. Economic pressures, including job losses in sectors like construction and rising inflation, are further straining Hispanic consumers' budgets.

Tensions escalated after Immigration and Customs Enforcement raids triggered protests in Los Angeles, prompting President Trump to deploy National Guard troops and Marines. Demonstrators, many with undocumented family members, expressed fears of leaving their homes. Protests have since spread to other cities.

The economic ripple effects are hitting consumer goods companies, food and beverage producers, restaurants, and retailers, especially in Southern states with large Hispanic populations. 

Coca-Cola reported a 3% drop in North American sales volume in the first quarter, attributing part of the decline to reduced Hispanic spending. Companies like Colgate-Palmolive, Constellation Brands (Modelo), and restaurant chains such as Wingstop and El Pollo Loco have also noted sales declines linked to lower Hispanic consumer spending in recent investor updates.