Immigration raids are starting to have an impact on small businesses in the West, with some merchants suggesting a climate of fear is keeping customers away.

"We're seeing more cases of people reluctant to patronize the stores they were going to," said Mark Arabo, owner of San Diego's Lulu's International Market and former president of the Neighborhood Market Association, a business group of about 2,000 small stores in California, Arizona and Nevada. "It's fear for ICE and it's fear for the government."

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