PRINT THIS STORY:

CHANGE TEXT SIZE:

SURVEY: GAS HIKE DIDN'T HIT SALES

BY IAN RITTER

Soaring gasoline prices this spring did not affect the spending habits of most U.S. consumers, says an ICSC research survey.

Gas prices for the week ended June 7 averaged $2.03 per gallon, up 54 cents from a year ago, according to the U.S. Energy Information Agency.

Of the 1,036 adults surveyed, 55 percent said they had not cut back on spending during the week preceding the poll. Among the 42 percent reporting that they had made economies, neighborhood centers were the least impacted shopping venues, while downtown shopping areas were the most affected. The impact of gas prices on shopping was greatest in the Midwest and least in the Northeast. Younger people and those with lower incomes were the most likely to cut back on driving. Among those cutting back, half called the decrease considerable, while the rest said it was modest. The 99 Cents Only Stores chain pointed to the gas price increase as it projected a same-store sales drop of as much as 4 percent for the second quarter.

Gas prices have not affected purchases of clothing, consumer electronics and jewelry, or the patronage of restaurants and spas, said 58 percent of those tallied.

Same-store sales for May reflected the report. Despite high gas prices that month, sales were up 5.7 percent over last May.

“The economy and consumer spending, so far, have seen a limited negative impact of the higher gasoline expenditures,” the report said.

That was the conclusion drawn by electronics chain Best Buy. “Given how our business has performed, we believe that neither the hike in gasoline prices nor forecasts for higher interest rates significantly affected our comparable store sales performance for the first quarter,” CFO Darren Jackson said in a news release. Best Buy’s same-store sales jumped 8.3 percent from the year-ago quarter.

The ICSC report notes that while gas prices have raised the average consumer expenditure by up to $10 per week over last year (based on a driving rate of 20,000 miles per year), personal income is up by about $13 weekly.

Fifty-two percent of respondents said they have become “more efficient” shoppers, making fewer visits and buying more items per trip.

The full report appears in the May issue of Retail Perspective, published by ICSC’s Research Department.