Fashion District Sees Sharp Decline in Sales Amid Immigration Raids

(LOS ANGELES) The Los Angeles Fashion District is facing a sharp downturn as stepped-up immigration raids ripple through one of the city’s busiest retail hubs. Since early June, shop owners say sales have fallen by as much as 50%, foot traffic has thinned, and workers and customers are staying home out of fear.

The slump intensified after a high-profile raid at Ambiance Apparel on June 6, 2025, which business leaders and local officials describe as the tipping point for empty aisles and shuttered doors in the district.

Immediate Effects on Foot Traffic and Sales

Business owners report that the presence—and at times, the rumored presence—of immigration agents has led to sudden closures and lost income. Foot traffic data shows a stark drop:

• District visitors fell from 386,000 in the first week of June to 246,000 in the second week (about a 36% decline).
• On Santee Alley, a central corridor known for heavy weekend crowds, counts sank by 50% in a single week.

Vendors have been left without their usual buyers and wholesalers without orders. Even when officers did not arrive, many shops closed early and workers stayed home. Owners say the fear is not limited to undocumented workers; it includes legal residents and U.S. citizens who avoid any setting where they worry about being questioned.

Ambiance Apparel Raid and Social Impact

Ambiance Apparel, a well-known manufacturer in the district, became the focus of a large enforcement action on June 6, when officers detained dozens of workers. In the days that followed, social media chatter about more immigration raids spread quickly.

• Many shops closed early or remained shut for days.
• Workers described feeling “caged in” at home.
• Legal residents and citizens also avoided the area, amplifying the economic fallout.

Immigrants make up an estimated 80% of the Fashion District’s workforce and a substantial share of its customer base, making the area especially sensitive to enforcement activity. “This is an in-person market,” said Anthony Rodriguez, who leads the Fashion District Business Improvement District. Many tenants run month-to-month and have thin reserves. “If people don’t show up to buy or work, the cash stops within days,” owners told elected officials who toured the area.

Political and Economic Responses

Mayor Karen Bass compared the economic shock to the early days of the pandemic—only worse in one respect. During COVID-19 shutdowns, many businesses shifted online or leaned on relief funds. Now, workers and customers are afraid to come out, and there’s no clear alternative.

“Immigrant labor is central to our city’s economy,” she said, urging Angelenos to spend in the district and keep small shops alive. Assemblymember Mark Gonzalez relayed similar comments from owners who fear they cannot make rent if the drop in customers continues.

The impact extends beyond Seventh and Santee:

• The Santa Fe Springs Swap Meet furloughed 109 workers starting July 1, after a steep fall in visitors linked to a mid-June raid.
• Restaurant owners serving the Fashion District report lighter lunch hours.
• Open-air markets and construction sites that rely on immigrant workers show signs of slowdown.

When immigrant-heavy workplaces go quiet, nearby businesses—from taco trucks to fabric wholesalers—feel the pinch.

Business Fallout in the Fashion District

• Sales down by up to 50% at numerous shops since early June.
• Visitor counts down 36% week over week across the district; 50% drop on Santee Alley.
• Extended closures at some factories and wholesalers as workers stay home.
• Month-to-month tenants behind on rent, putting leases at risk and raising vacancy concerns.

Owners describe a wary routine: many keep lights off and doors locked even during normal hours, opening only for known customers. Others have cut staff to a skeleton crew. Some manufacturers remain closed for days, and landlords—many still recovering from pandemic losses—are losing tenants unable to keep up with payments.

Human and Health Consequences

Researchers warn that deep cuts to immigrant labor do not help U.S.-born workers. UC Davis economist Giovanni Peri’s work shows that large-scale deportations fail to raise wages for U.S.-born workers over time and can reduce overall job opportunities.

Public health experts emphasize the non-financial toll. William Lopez at the University of Michigan describes trauma in families after raids, comparing the aftermath to natural disasters. Those patterns now echo in garment alleys and wholesale buildings around the Fashion District.

Policy Climate and Civil Rights Concerns

The enforcement backdrop has shifted in 2025 under the Trump administration, with federal officials escalating worksite operations and promoting policies that encourage “self-deportation.” Local advocates say that even rumors of upcoming actions can depress an area’s economy.

• According to the UCLA Asian American Studies Center, ICE arrests of Asian immigrants in Los Angeles have more than tripled from 2024 to 2025, with a ninefold increase in the first week of June alone.
• The center warns the surge feeds xenophobia affecting Asian, Hispanic, and African communities alike.

Business owners and attorneys report that officers sometimes arrive without warrants, raising concerns about due process during workplace checks. Civil rights groups stress basic rights if approached by immigration officers:

• The right to remain silent
• The right to ask if you’re free to leave
• The right to request a lawyer

The U.S. government provides background on worksite enforcement practices; readers can find official information through U.S. Immigration and Customs Enforcement at ICE Worksite Enforcement. While policies can change, rights in the United States 🇺🇸 remain anchored in the Constitution and the courts.

VisaVerge.com reports that enforcement waves often create a chilling effect far beyond the immediate targets. Even families with lawful status may stay home to avoid any interaction with officers. According to VisaVerge.com’s analysis, this behavior is visible across retail corridors when raids make headlines, and recovery can take weeks—if it occurs at all.

Local leaders warn deeper economic losses could spill over into city revenue, commercial property values, and jobs for residents across status categories. Mayor Bass urged shoppers to “show up” to support small businesses, while calling for sustained attention to immigrant-heavy sectors such as construction and retail.

What’s Next for Workers and Shops

Experts and advocacy groups anticipate that worksite operations and deportation-focused policies may intensify through the second half of 2025. Shopkeepers are rethinking business plans as a pattern emerges: when news of a raid spreads—real or rumored—workers stay home, customers vanish, and cash flow collapses.

The district’s model still depends on face-to-face sales; garments and fabrics are tactile goods and wholesale buyers often want to inspect products in person. A few owners have turned to delivery, but that is only a partial solution.

For small businesses trying to hang on, several practical steps are emerging:

1. Post clear hours and keep communication channels open with customers who prefer to call ahead before visiting.
2. Adjust staffing to reduce exposure during rumored enforcement days while preserving core operations.
3. Document any business disruptions tied to raids in case relief programs or legal avenues open later in the year.
4. Share accurate information about workplace rights so panicked closures do not spread based on unverified rumors.

Workers describe hard choices: some have stopped commuting altogether; others carpool, travel at off-hours, or keep a change of clothes ready at home. Parents are rethinking school pick-ups and drop-offs to avoid being away from children if an incident occurs. When families are afraid, they do not shop, eat out, or take on new work—and entire blocks go quiet.

Economists warn that fewer immigrant workers do not automatically create jobs for others. The district’s production chain is integrated: if a factory line slows because skilled stitchers are missing, the cutter, delivery driver, and sales clerk also lose hours. When buyers cancel orders, warehouses and showrooms stand idle. Over weeks, this cycle can turn a few slow days into permanent closures.

Looking Ahead

Owners in the Los Angeles Fashion District say they are proud of a neighborhood that has rebounded from downturns before. But they fear this downturn is different because fear itself is the driver. They believe the path back requires calm, clear policy and community confidence.

Local officials are pressing for visible, direct support:

• Buy from small shops
• Place orders with local manufacturers
• Keep workers employed

The hope is that each purchase sends a signal that the district remains open for business. For now, owners and workers are watching the calendar and the street, hoping the next week brings more customers than rumors.