More evidence that higher gas prices could equal higher online sales
A fifth of consumers who shop online increased their buying as the result of higher gasoline prices in September, reports the latest ShopperScape survey from Columbus, OH-based retail consultants Retail Forward Inc.
6.7% of consumers who shop online said they are shopping online much more as a result of high gas prices, while 15% said somewhat more. The Retail Forward survey is the second consumer survey this fall that shows consumers going online to avoid driving. The first, by Shopzilla.com, showed 40% of consumers increasing their online shopping as the result of higher gasoline prices.
The online shopping habits were part of Retail Forward’s September ShoperScape survey that spells “caution” for retailers. Retail Forward’s Future Spending Index dropped 10% in September to 94, from 104.6 the month earlier. It’s the lowest since the index benchmark of 100 was set in December 2003.
"The economic side effects of Hurricanes Katrina and Rita have sent a collective shudder through the consumer sector," said Steve Spiwak, an economist with Retail Forward. "Higher energy costs are the main culprit for the falloff in spending intentions for October. But the storms also have heightened concerns about job security and the direction of equity markets, contributing to the soft near-term outlook."
Two thirds of consumers reported that they are reducing spending in other areas to pay for more expensive gasoline. 31% said they are spending much less and 36% said somewhat less. Throughout all income categories—down market, middle market and up market—more than half of consumers said they are spending less in other areas as a result of higher gasoline prices.
In addition, Americans’ charitable contributions to hurricane relief are dampening their consumer spending. 53% of consumers have made a monetary contribution to hurricane relief. 46% of consumers said they have cut back spending elsewhere as a result (6% quite a bit, 16% somewhat, 25% a little).
The biggest losers in spending will be travel and entertainment, ShopperScape reports. Areas where consumers will reduce their spending, and the percent who cited each one, are:
Vacations/travel, 45%
Dining out, 37%
Entertainment outside the home, 32%
Consumer electronics, 23%
Clothing, shoes and accessories, 23%
Home decorating, 22%
Appliances, 18%
Other, 4%
42% of consumers said the effect of the hurricanes will reduce their holiday shopping; 15%, a lot; 27%, somewhat. While 30% said it won’t affect their spending, 28% said they are not sure.
Back...
