LA protests: Hispanic buyers lie low, brands see their sales drop in the US

Business Standard

2 days ago

In cities like Los Angeles and towns across Texas, Hispanic shoppers are quietly disappearing from supermarkets, malls, and restaurants. Not because they no longer need goods or services — but because fear has taken over. Immigration crackdowns and high-profile ICE raids have sparked protests, triggered boycotts, and stopped consumer activity.
The result: Some of US' biggest brands are seeing sales fall, and the country's $2.1 trillion Hispanic spending power is declining.
The Trump administration's tough stance on immigration has sparked anxiety among Hispanic communities — both undocumented and documented. Following recent Immigration and Customs Enforcement (ICE) raids in Los Angeles and other cities, many Latino families are staying home, avoiding stores and public spaces where encounters with authorities may occur, The Wall Street Journal reported.
'We have seen a huge decline in traffic,' said Regis Schultz, CEO of JD Sports, which operates the Latino-focused Shoe Palace chain. 'You can see definitively the impact.'
Even US citizens are making adjustments. Manuel Marchant, a naturalised citizen and IT manager in Florida, now avoids going out at night and carries his citizenship papers wherever he goes. 'I'm worried if I'm stopped,' he said.
Brands take a hit
The drop in Hispanic consumer activity is impacting major US brands. Coca-Cola, long popular among Latino communities, saw North American sales volume fall 3 per cent in the first quarter. Meanwhile, companies like Colgate-Palmolive, Constellation Brands (maker of Modelo beer), and fast-food chains like Wingstop and El Pollo Loco have all reported reduced sales tied to lower Hispanic spending, The Wall Street Journal report mentioned.
'I think it's the fear,' said Dennis Kim, owner of Let's Go Market in Cleveland, Texas, where sales dropped by nearly a third earlier this year.
Even Modelo, which surpassed Bud Light to become America's top-selling beer in 2023, has begun to slip. Nearly half of its US customers are Hispanic. 'If that consumer has concerns, issues, etc, that's a big deal for us,' said Constellation CEO Bill Newlands.
Looting at Zara in LA following the anti-ICE riots on Monday. Expect more of the same tonight, sadly. Stores have boarded up their windows in anticipation of rioting incited by Gavin Newsom. pic.twitter.com/nZtk1m4hx6
— Paul A. Szypula ???????? (@Bubblebathgirl) June 11, 2025
Boycotts and budget cuts
Compounding the problem for Coke was a wave of misinformation. A social media rumour falsely claimed the company supported ICE raids, prompting a boycott. Although Coke refuted the claim, many Hispanic shoppers have switched to Pepsi or store-brand alternatives.
In Houston, Isabel Aguilar, who sells goods at a Latino market, said, 'People don't want to spend because, obviously out of fear, they prefer to keep their money in case there will be deportations.' Economic pressures are also weighing on spending. Inflation and job losses in sectors like construction have stretched budgets thin. Carlos Jimenez, a federal employee in Albuquerque, said his family is skipping vacations, shopping for refurbished products, and switching from name brands to generic products. 'We're trying to make our dollar stretch as much as possible,' he said, as quoted by The Wall Street Journal report.
A video shared by Brendan Gutenschwager showed an Apple store in downtown Los Angeles being looted during the anti-immigration protests.
Apple store in downtown LA being looted tonight pic.twitter.com/3k5i7wKiSG
— Brendan Gutenschwager (@BGOnTheScene) June 10, 2025
Retailers try to win back shoppers
Brands are now scrambling to reconnect with Hispanic buyers. Coca-Cola has launched a bilingual campaign, 'For Everyone', reviving its iconic 'Para Todos' ad. Other retailers are offering discounts, promotions, and culturally tailored messaging to bring shoppers back.
A report by market research firm Kantar showed Hispanic foot traffic dropped across major chains like Walgreens, Home Depot, and Dollar General in early 2025. Brick-and-mortar shopping by Hispanic consumers declined from 62 per cent to 53 per cent between late 2024 and early 2025.
Los angeles protests
Protests against anti-immigration policies in Los Angeles continued for a sixth day on Wednesday, prompting the reimposition of a curfew as unrest spread to cities like Austin, Chicago, New York, Dallas, and Denver. Protests are expected to intensify over the weekend, coinciding with the US Army's 250th anniversary and President Donald Trump's 79th birthday.
Since Saturday, over 400 people have been detained, including 330 undocumented migrants and others charged with assault or obstruction. Two individuals face charges for throwing Molotov cocktails at police. The Trump administration has deployed thousands of troops, including 700 Marines, to help control the situation.