NOGALES, Ariz. (KGUN) — At BKY's Place, owner Sergio Castaneda said he's seeing significantly fewer customers than usual for December. The owner is now relying heavily on his regular clientele to stay afloat.
"There's no customers around here, and all day we've seen few," Castaneda said.
He attributes the decline to increased border security measures that have created substantial delays for people trying to cross from Mexico into Arizona.
"Two hours, three hours sometimes to cross the border in a car, and walking, they saID they make it in an hour, hour and a half," Castaneda said.
This year, the National Retail Federation expects people to spend about $890 on gifts, down from approximately $902 last year.
Despite lowering prices to attract customers, Castaneda says sales remain sluggish.
"We have a lot of prices down, but even people, they don't buy it," Castaneda said.
However, some Mexican shoppers are still making the journey, motivated by the variety and competitive prices available in Arizona stores.
"Here there is more diversity of items. There are more different ones here than over there," said Alejandro Puertas, a shopper from Mexico.
The economic impact extends beyond individual businesses. According to the Bureau of Labor Statistics, overall prices increased 3% from September of last year to this September, adding pressure on both businesses and consumers.
Isabel Navarro, who owns Divinas, said her sales have dropped to half of what they were last year. To compensate, she's had to raise her prices.
"It affects us economically because we still have to continue paying the taxes. Everything needs to continue generating," Navarro said.
Despite the challenges, the Mexican shoppers who do make the crossing emphasize their importance to the local economy.
"Here in Nogales, they depend on the trade from Mexico. If there weren't Mexicans shopping here, Nogales would shut down," Puertas said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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Andrew Christiansen is a reporter for KGUN 9. Before joining the team, Andrew reported in Corpus Christi, Texas for KRIS6 News, Action 10 News and guest reported in Spanish for Telemundo Corpus Christi. Share your story ideas with Andrew by emailing andrew.christiansen@kgun9.com or by connecting on Facebook, or Twitter.
