To compensate for higher gas prices, almost half of all survey respondents (45 percent) said they will simply drive less. More than a third (37 percent) will scale back vacation and/or travel plans, and another third (36 percent) will dine out less often. One out of five respondents (22 percent) said they will delay a major purchase such as a car or television. And 8 percent said they will carpool—almost double the amount from last year.

Although the luxury market has seemed immune to the rise in gas prices, new evidence suggests that even these recession-proof shoppers may start pulling in the reins. According to the NRF survey, 69 percent of affluent shoppers (those with household incomes of $50,000 or higher) concede that gas prices are negatively affecting spending, compared with 59 percent in 2005.

“Higher prices at the pump act as a tax on disposable income,” said Tracy Mullin, president and chief executive officer of the NRF. “As prices continue to rise, it is inevitable that consumer spending will be affected. Consumers will be looking for retailers that provide the best return for their dollar. This clearly gives the advantage to discounters, warehouse clubs and online retailers over department stores and mall-based retailers.”

NRF is the world's largest retail trade association, with a membership that comprises all retail formats and channels of distribution. [July 2006 PET AGE]