In real life, most racists aren't Nazis like the Thalmor. They just don't like being around other peoples or thinking they're hurting "their" race.
Presumably that poor shopkeeper is a bootshiner and willing to say/do what it takes to make the Nords think of him as "one of the good ones" or "a credit to his race."
bleah. I felt for the guy.
Worse, because he really thinks this was the best course for him and his family.
Niranye is a girl. Guess she was forced to say that seeing as how the Hllalu farm has a Nord WORKING for a Dunmer and nobody complains about it, the Altmer merchant in the White Phial is a tad snarky to even Nord PC's so surely the racist Nords would hate him for being snooty to Nords even though nobody complains about it, and the racist Nords direct you to Sadri's store, a store owned by a DUNMER! Surely they are racists

/sarcasm

