Consumers
Cut Back as Gas Prices Rise
Although they have tried to take higher energy costs in stride,
three out of four U.S. consumers (76 percent) say fluctuating
gas prices have impacted their spending habits—up from
67 percent in 2005 and 57 percent in 2004, according to a 2006
survey on gas prices by the National Retail Federation (Washington).
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]
PET AGE QUICKPoll
GAS PRICES AFFECT PET RETAILERS
Gas prices are having at least some impact on three out
of four pet retailers participating in a one-question
poll posted on the PET AGE Web site from May 10 to May
15, 2006. A total of 516 PET AGE subscribers participated
in the poll.
|
| HOW HAVE RISING GAS PRICES AFFECTED YOUR
STORE? |
| |
% STORES |
| No impact so far |
27% |
| Minimal to moderate impact |
49% |
| Already feeling serious impact |
24% |
|
