Tag Archives: Consumer optimism

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NACS: Low gas prices continue to push consumer optimism to high levels

ALEXANDRIA, Va., 2017-Dec-13 — /EPR Retail News/ — Low gas prices continue to push consumer optimism to high levels and this optimism will likely translate into more holiday travel and shopping, according to the December 2017 NACS Consumer Fuels Survey.

Low gas prices—which dropped 3 cents per gallon to $2.47—are a big reason for the optimism: 72% of drivers say that gas prices affect their feelings about the economy.

For the third consecutive month, 61% of gas purchasers say they feel optimistic about the economy, tied for the highest level recorded over the past five years of the monthly surveys.  Optimism is largely uniform across regions but there is a significant difference by gender: Men are far likelier than women to say that they are optimistic about the economy (69% vs. 53%).

NACS, which represents the convenience store industry that sells an estimated 80% of the fuel sold in the United States, has conducted monthly surveys related to economic issues since January 2013.

Consumer optimism has been consistent throughout 2017: Optimism stayed between 57% and 61% for 11 of the 12 months of 2017. The only exception was September (54%) following Hurricanes Harvey, Irma and Maria.

Optimism in December 2017 is 10 points higher than December 2015, and 22 points higher than December 2013. This year, the average monthly gas price ranged from $2.22 to $2.59. By contrast, the average price in December 2013 was $3.29.

Consumer optimism may translate to a busy holiday shopping season. More than one in four consumers (27%) say they will drive more this month, led by 43% of those ages 18 to 34. Last month, only 16% of American said they would be driving more.

Consumers also say they may be spending more this month. One in three (33%) say they will be spending more this month, the same percentage as last year but 6 points higher than in December 2015.

“Strong economic optimism is undoubtedly the story of 2017. Low gas prices and high consumer optimism are the best predictors of convenience store sales. Combine these positive indicators with the continued growth of prepared foods and healthy options in convenience stores and it shows why 2017 is shaping up as another record-setting year for in-store sales,” said Jeff Lenard, NACS vice president of strategic industry initiatives.

The survey was conducted online by PSB (Penn Schoen Berland); 1,104 U.S. adults who purchase fuel for a vehicle such as a car, truck or van at least once per month were surveyed December 5-8, 2017. Summary results are available at convenience.org/fuelssurvey.

NACS advances the role of convenience stores as positive economic, social and philanthropic contributors to the communities they serve. The U.S. convenience store industry, with more than 154,000 stores nationwide selling fuel, food and merchandise, serves 160 million customers daily—half of the U.S. population—and has sales that are 10.8% of total U.S. retail and foodservice sales. NACS has 2,100 retailer and 1,750 supplier members from more than 50 countries.

Source: NACS

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NACS: Consumer optimism is at an all-time high Despite rising gasoline prices

​ALEXANDRIA, Va., 2017-Mar-14 — /EPR Retail News/ — Despite rising gasoline prices, three in five (61%) gasoline consumers report feeling optimistic about the state of the economy, according to the latest National Association of Convenience Stores (NACS) Consumer Fuels survey. Consumer optimism is at an all-time high across the four-plus years the national survey has been conducted, surpassing the 58% economic optimism recorded in December 2016 following the presidential election.

A majority of Americans are optimistic across all demographics examined. Older Americans age 50 and older are the most optimistic age group (65% optimistic), compared to 55% of those ages 18-34 who are optimistic. There also are regional differences, with Southerners reporting the highest levels of economic optimism (64%) and Midwesterners reporting the lowest (56%).

Americans also report a 4-cent rise in gas prices in their area. The reported median gas price of $2.29 brings gas prices back up to where they were at the beginning of the year, when gasoline consumers reported a median price of $2.30 (January 2017). Price increases are being felt the most strongly in the West, where a majority (52%) report seeing gas prices higher than they were last month. By comparison, just 41% of gas consumers in the Northeast and the South report seeing higher gas prices this month.

A majority of gasoline consumers expect prices to continue increasing in the next month, a time when gas prices generally face upward pressure as the fuels industry undergoes the annual transition to producing summer-blend fuel. Half (51%) of all Americans say that they expect prices in 30 days to be “much higher” or “somewhat higher” than they are today. Just one in ten (9%) expect prices to drop in the coming month.

Traditionally, rising prices have an inverse effect on consumer optimism. In March 2013, when 85% of Americans said that gas prices had increased, optimism stood at only 41%. However, gas prices also were much higher in March 2013 ($3.58).

The strong optimism may also translate into increased sales for convenience retailers: One in five consumers (22%) say they will drive more this coming month and 19% say they will shop more. More than three in four consumers (76%) say that gas prices have an impact on their optimism.

“The strong consumer optimism is also great news for convenience store retailers, who generally see sales grow when consumers are feel good about the economy, gas prices are low and the weather is nice. It appears that consumers are ready to unleash that optimism with more spending,” said Jeff Lenard, NACS vice president of strategic industry initiatives.

And there is one more factor that can help grow sales for convenience stores: This past weekend’s change to Daylight Saving Time, which adds an extra hour of daylight to evening hours.

“With the extra hour people stay out later, and outdoor activities pick up — as do our sales. The time change equates to an immediate 10% lift in sales,” said E-Z Mart Stores CEO Sonja Hubbard (Texarkana, TX).

The survey was conducted online by Penn Schoen Berland; 1,102 U.S. adults who purchase fuel for a vehicle such as a car, truck or van at least once per month were surveyed March 7-9, 2017. Summary results are available at nacsonline.com/fuelssurvey.

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Founded in 1961 as the National Association of Convenience Stores, NACS (nacsonline.com) is the international association for convenience and fuel retailing. The U.S. convenience store industry, with more than 154,000 stores across the country, conducts 160 million transactions a day, sells 80% of the fuel purchased in the country and had total sales of $575 billion in 2015. NACS has 2,100 retail and 1,700 supplier member companies, which do business in nearly 50 countries.

SOURCE: NACS

For media interviews/comments contact Jeff Lenard.

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NACS survey: Consumer optimism fell from 54% to 44%, the largest decrease in optimism in more than two years as gas prices rise

​ALEXANDRIA, VA, 2015-3-11 — /EPR Retail News/ — Rising gas prices are taking a toll on consumer optimism about the economy, with optimism falling to its lowest level since August 2014. Consumer optimism fell from 54% to 44%, the largest decrease in optimism in more than two years, according to survey results released by the National Association of Convenience Stores (NACS).

In the past month, gas prices rose 29 cents per gallon as refineries have begun the transition to produce the costlier summer-blend fuels that are required in many markets across the country. Over the past 15 years, gas prices have increased, on average, more than 50 cents per gallon during the February-to-May transition.

Consumers expect the upward trajectory of gas prices to continue, as three in four (73%) believe gas prices will be higher in 30 days than they are today — a noteworthy increase from 58% in February.

Weather may also play a role in consumer optimism. Consumer optimism was the lowest in the Northeast (37%), which has been battered by storms and cold weather this past month.

“While prices are rising, retail gross margins on gas are falling and now average 10 cents per gallon, about half of the 19 cents per gallon that they have averaged over the past five years,” said NACS Vice President of Strategic Industry Initiatives Jeff Lenard. “After factoring in expenses — especially credit card fees — profit margins across the country are slim or negative at the fuel pump now.”

With gas prices rising, consumers say they are more sensitive to the price at which they would change their behavior. The median fuel price consumers say they would try to reduce how much they drive is $3.50 per gallon, down from $4.00 this time last year. Similarly, the median price that consumers would seek out alternatives to drive is $4.14 per gallon, down from $4.70 in March 2014. Both of these figures are the lowest since NACS initiated the monthly consumer survey in January 2013.

“This lowering of the price threshold would seem to give evidence to the theory that consumers become much more sensitive to a spike after a period of lower prices,” said Lenard. “Consumer optimism has fallen to the level of August 2014, when gas prices were $3.50 a gallon, more than a dollar a gallon more than today.”

There is some good news in the findings. Despite the rise in gas prices, nearly one in five (19%) consumers say that they will spend more money on consumer goods over the next 30 days, the highest level since December when holiday shopping surged.

Younger consumers are most likely to spend and drive more this month. Of those ages 18-34, 27% say that they will shop more this month and 28% say that they will drive more, significantly higher than the overall average of 17%.

Over the past five months, consumer optimism has closely tracked miles per dollar spent on fuel, which measures self-reported fuel efficiency and gas prices.

NACS, which represents the convenience store industry that sells 80% of the gas sold in the country, conducts the monthly consumer sentiment survey to gauge how gas prices affect broader economic trends. The NACS survey was conducted by Penn, Schoen and Berland Associates LLC; 1,100 gas consumers were surveyed March 3-6, 2015. Summary results are at www.nacsonline.com/gasprices.

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Founded in 1961 as the National Association of Convenience Stores, NACS (nacsonline.com) is the international association for convenience and fuel retailing. The U.S. convenience store industry, with more than 151,000 stores across the country, posted $696 billion in total sales in 2013, of which $491 billion were motor fuels sales. NACS has 2,100 retail and 1,600 supplier member companies, which do business in nearly 50 countries.