A boost for one-stop shopping
As gasoline prices throttle along past the $3 mark, Sue Wright is forced to spend less in other areas.
"I have to cut back somewhere," Wright said, adding it's little things here and there.
"We go out for dinner one time a week instead of two," Wright said last week while shopping at Costco in Lake Zurich.
Because more money goes into her gas tank to pay for her work commute to Chicago, Wright, who resides in Lakemoor and spends three hours a day in her car, is forced to find other areas to save cash.
"I'm shopping more wisely and watching prices," she said.
Wright's habits are in line with a new study from Schaumburg-based The Nielsen Co. Its survey found that 49 percent of respondents say they are reducing spending to compensate for hikes in gasoline prices, up four percent in the last six months.
The survey, conducted in December when regular gas averaged $3.06 a gallon, found that 70 percent of U.S. consumers are combining shopping trips and errands, 41 percent are eating out less and 39 percent stay home more.
In addition, the study found 27 percent say they are reacting to gas prices by shopping more at supercenters or megstores, where more items needed are in one store. Nearly one third of households still travel 11 miles or more to a supercenter.
Costco, seeing double digit increases in holiday sales, believes higher gas prices play a part in its recent success.
"When it costs 50-plus dollars to fill up your tank, customers will be more cautious in they way they shop," said Bob Nelson, vice president of finance and investor relations for Costco.
He believes the convenient one-stop shopping the store offers is key. One-hour photo, tires, optical, a gas station, pharmacy, food court, groceries and household supplies are all under one roof. Nelson said if they can provide all these services while "showing good value," shoppers will respond.
Wal-Mart officials agree. "The country is facing challenges, from interest rates to gasoline prices. With our super centers, you can get an oil change, infant formula and jogging suit all at the same place," said Mia Masten, Wal-Mart's director of corporate affairs, Midwest division.
Experts agree that the upcoming year will continue to provide challenges with growing inflation, credit card debt, declining house values as well as expectations for gasoline to hit $3.40 a gallon by spring.
"Value, convenience and competitive pricing will be more important than ever in the year ahead," said Todd Hale, who was involved in the Nielsen survey.
Meanwhile, some shoppers have not felt a pinch and say they have made little or no alterations in spending patterns.
Lake Zurich mom Tracy Ponce said she hasn't change the way she shops. While strolling the aisles at Costco with her four children, she said she has to buy for her family, regardless of the price of gasoline.
Because Dwight and Sheila Delattre use little gas in getting to work, they say their shopping is basically the same. Dwight works from home while Sheila is employed five minutes from their Arlington Heights house.
"Maybe if we were spending more on gas, the increasing prices would impact us more," Sheila said.