Consumers are dreading their Christmas shopping. Not because of lines, but because they do not know what to buy. There are no new, different or unique products being sold. Electronics and gadgets do well every year but apparel may take a dive.
Also, people do not want to shop for themselves because they cannot afford to. Consumers feel that if gas prices were lower they would be able to spend more for Christmas. Gas prices are up 30% from where they were last year at this time. An estimated $7 less per week will be spent over this holiday season.
Lower-income consumers will be affected most by the price of gas. "High-end shoppers" are less affected. Luxury items will still be bought. A senior retail analyst at Bernard Sands', Richard Hastings, feels that "consumer spending will see more of a marginal change rather than a substantial change."
Will gas prices really affect Christmas shopping? I don't think so. Christmas shopping always becomes a concern and people use gas prices this holiday season for their way out.
4 comments:
What about online Christmas shopping? I know that I have done more online purchasing for Christmas because then I don't have to brave the crowds and the prices are at least comparable, if not better. The price of gas affects pretty much everything indirectly, but I still think people will find a way to spend what they want on Christmas.
Every year people talk about how stressful Christmas shopping is. I agree with Julie in that we will still spend the same amount on Christmas. People will spend less in other areas. More people will possibly carpool down to St. George to go Christmas shopping. Some might use the internet instead like jasmine said. People are just using gas prices as an excuse right now.
The majority of American people are going to celebrate Christmas as they do every year: large and with much debt accumulated. Debt doesn't matter until that one day in January that they walk to the mailbox and find that in-fact the credit card companies do want their money back. Gas will affect middle to lower income families in some ways. Just the mental thought of higher gas prices will place a thought in their minds that maybe they should hold back a little this year. But the election will be behind us, and we can again get along with our lives. This will give the American public some added peace of mind.
The drift of what most of you are saying is that the elasticity of christmas purchases with respect to gas prices is pretty low. That seems correct to me.
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