Just when retailers thought they could stop shivering...

After a much-too-long winter that impacted the economy significantly, the US is faced with another challenge: the rise in gas prices. As the demand for US oil is increasing overseas, gas prices are rising at home. The total of petroleum exports, mainly gasoline and diesel, is up 25% from the same period last year, and US consumers are feeling this in their pockets. Nancy White, a spokeswoman for Motor Club AAA, explained in an interview with the WSJ: "Production is going overseas, so that impacts the supply here, and that will drive prices up." Today, gasoline is costing consumers 5% more than last year. Some analysts say that the prices should stabilize very soon, while others believe that this is just the beginning.

With the warmer weather looming ahead, some people may opt to stay at home instead of driving to their vacation spots. Not only that, but higher gas prices impact consumer spending a great deal; the tables below openly display that. Table 1 gives an overall view of the matter, while tables 2 and 3 convey that among other things, people will be prioritizing driving less, shopping closer to home, buying promotional items, and shopping online more often. Higher gas prices will also impact delivery services. Retailers need to be proactive and prepared for smaller profit margins. Not a happy ending for such a long winter.

Tables provided by the NRF Retail Insight Center: How Gas Prices Impact Spending (April 2014)

                            1

                             2

                            3

Sources:
"Price of Gas in U.S. Rises as Refiners Export More to Other Countries" WSJ
http://online.wsj.com/news/articles/SB10001424052702304049904579516121276626720