NRF survey says gasoline prices having ripple effect
Home & Textiles Today Staff -- Home Textiles Today, May 19, 2004
WASHINGTON — According to the National Retail Federation, high gas prices are causing some consumers to think twice about how they spend their money. Although nearly half of consumers (43.2 percent) do not believe gas prices will have a major impact on their spending, others are choosing to scale back on vacation plans, new clothes, and groceries, stated the NRF.
According to the survey, nearly one in three consumers (31.6 percent) plan to trim or halt travel and vacation plans due to rising gas prices. Consumers also plan to reduce the number of times they eat out (26.9 percent), will spend less on clothing (20.9 percent) and will cut back on groceries (15.9 percent). Some consumers (13.6 percent) are delaying major purchases like cars, television sets, and furniture.
"Retailers know that when consumers are forced to spend more of their disposable income on gasoline, they will scale back spending in other areas," said NRF President and CEO Tracy Mullin. "Ultimately, higher prices at the pump act as an additional tax on consumers, and consumers don't like to be taxed."
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