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May 18, 2007

Uncertainty About Gas Prices Taking Toll on Consumers, According to NRF Survey

Note to media: Click here for full report

Contact: Kathy Grannis or Scott Krugman (202) 783-7971
grannisk@nrf.com or krugmans@nrf.com

Uncertainty about Gas Prices Taking Toll on Consumers, According to NRF Survey

Washington, May 18, 2007 – With summer just around the corner, uncertainty about rising gas prices is causing concern for both consumers and retailers. The National Retail Federation’s 2007 Gas Prices Consumer Intentions and Actions Survey, conducted by BIGresearch, found that 74.2 percent of consumers currently believe fluctuating gas prices have impacted their spending habits, compared with 76.3 percent in 2006.

According to the survey, the average consumer believes that the price of gas will reach $3.32 per gallon by Father’s Day. As a result, consumers say they are finding a variety of ways to offset the financial impact. Many say they are taking fewer shopping trips (40.2%) and shopping closer to home (37.9%), while one in three consumers (30.7%) are shopping for sales more often and one in five (23.5%) are using more coupons.

“Consumers are entering the summer season with a cautious view of increasing gas prices,” said NRF President and CEO Tracy Mullin. “To offset the effects of higher prices, more consumers are giving their wallets a little extra cushion by cutting back on discretionary spending or choosing to frequent retailers closer to home.”

Many consumers (40.0%) are choosing to drive less, in an effort to lighten the impact of higher prices at the pumps. The survey found that 32.6 percent have decreased their vacation/travel and 31.1 percent are dining out less. Nearly a quarter of consumers (24.1%) are spending less on clothing and only one in five (20.1%) have delayed major purchases, such as a car, television or furniture. Gas prices are not affecting everyone, though: more than a quarter of consumers (25.8%) say they feel no major impact. And while 25-34 year olds are feeling the impact the most (78.9%), the 65+ demographic that claims to be impacted the least (65.7%).

About the Survey
The NRF 2007 Gas Prices Consumer Intentions and Actions Survey, conducted for NRF by BIGresearch, was designed to gauge consumer behavior and shopping trends related to an increase in the cost of gasoline. The poll of 8,353 consumers was conducted from May 2 -9, 2007. The consumer poll has a margin of error of plus or minus 1.0 percent.

BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch's syndicated Consumer Intentions and Actions survey monitors the pulse of more than 7,000 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace.

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2006 sales of $4.7 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com

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