According to the BIGresearch Consumer Intentions & Actions Survey in mid-October, consumer confidence gains 4 points to reach 37.3% in October compared to September's 33.4%... still off about 7 points off from last year. Consumers continue to proceed with caution, though, with 50.1% still say they've become more practical in their purchasing in the last 6 months, only a slight decline from September, and a gain of more than 10 points from last year.
With pump prices edging down over the last 30 days, consumers are taking less dramatic measures to make room in their budgets for fuel expenses (compared to September)
Compared to 2004, though, the cost of motoring is taking a toll on wallets:
How Fluctuating Gas Prices Impact Spending (percent of respondents, rounded) | ||
| October, 2004 | October, 2005 |
Delayed major purchase | 15.0% | 24.0% |
Reduced dining out | 26.0 | 41.0 |
Decreased vacation/travel | 31.0 | 39.0 |
Increased carpooling | 4.0 | 8.0 |
Driving less | na | 54.0 |
Spending less on groceries | 16.6 | 22.5 |
Spending less on clothing | 22.0 | 31.0 |
No major impact | 41.0 | 23.0 |
Source: BIGresearch, Consumer Intentions & Actions, October 2005 |
As temperatures drop, the study finds that the respondents are planning to cope by:
· Heating up with a fireplace/wood burning stove (12.4%)
Budget-conscious consumers are still fashion-conscious. 10.6% consumers that newest trends and styles of apparel are important, a rise from 8.3% last year, while 38.2% value familiar clothing labels, up from 34.5% last year.
This month's Consumer Migration Index (CMI) for Children's Clothing shows that discounters Target and Wal-Mart have the edge over the competition. With +3.6 and +2.3, respectively, both stores have more new customers entering than customers exiting. Sears and Kmart fall short with consumers at -1.9 and -2.4, respectively:
· 7.3% poor selection
Retail Merchandise Categories 90 Day Outlook | ||
| September 05 | October 04 |
Children's | Up | Down |
Toys And Games | Up | Down |
Women's Dress | Up | Down |
Cds/Dvds/Videos/Books | Up | Down |
Women's Casual | Up | Down |
Electronics | Up | Down |
Men's Dress | Up | Down |
Groceries | Up | Down |
Men's Casual | Up | Down |
Home Improvement | Down | Down |
Shoes | Up | Down |
Lawn & Garden | Down | Down |
Hbc | Flat | Down |
Home Furniture | Down | Down |
Dining Out | Up | Down |
Decorative Home Furnishings | Down | Down |
Sporting Goods | Up | Down |
Linens/Bedding/Draperies | Down | Down |
Source: BIGresearch, Consumer Intentions & Actions, October 2005 |
You can find more information on this study here.