Rising Gas Prices Take Long-Term Toll On Shoppers.

Despite a recent drop in gas prices, consumers continue to alter their spending to compensate for high numbers at the pump. According to the NRF 2005 Gas Prices Consumer Intentions and Actions Survey, conducted by BIGresearch, more than half (66.2%) of consumers, or 145.3 million Americans, believe that fluctuating gas prices have impacted their spending habits, up from 56.8 percent in 2004.

“While shoppers seem to be getting over the initial sticker shock, gas prices have taken a long-term toll on consumers, many of whom have had to adjust their spending to compensate for the increases,” said Tracy Mullin, NRF President and CEO. “Every penny spent on gasoline is a penny kept from retailers, so this is also a very real problem for our industry.”

According to the survey, 68.5 million people (31.2% of consumers) have decreased vacation or travel plans as a result of gas prices. People have also been dining out less frequently (25.2%), reducing the amount of money they spend on clothing (23.7%), and spending less on groceries (17.3%). In addition, 35.9 million consumers (16.4%) have delayed major purchases such as cars and furniture as a result of higher gas prices.

Whether gas prices pose a fiscal or psychological concern, consumers are affected regardless of income. Two-thirds (69.9%) of consumers with household incomes under $50,000 say they have felt an impact from rising gas prices, and more than half of consumers (58.2%) with household incomes over $50,000 say have also been affected.

“High gas prices have become a way of life for consumers, and they are adjusting as much as they can,” said Phil Rist, Vice President of Strategy for BIGresearch. “Shoppers seem to be primarily bypassing restaurants and clothing stores in order to compensate for spending more at the pump.”

Only 35.1 percent of consumers polled said that gas prices would affect their Memorial Day spending. This is slightly down from last year, when 38.5 percent of consumers said that increased gas prices would impact their spending over Memorial Day weekend in 2004.

But higher gas prices aren’t pinching Americans too much. According to the survey, rising gas prices have only caused only 5.7 percent of us to increase carpooling.

For more information at http://www.nrf.com