Consumers plan July 4 celebrations despite high gas prices

As consumers head into summer, gas prices still weigh heavily on their minds, but not at the cost of their Independence Day celebrations. According to NRF's 2007 Independence Day Consumer Intentions and Actions Survey, 42.1% of consumers said increased gas prices will impact their spending for the July 4th holiday, slightly lower than the 46.8% who said they were impacted last year. Independence Day falls on a Wednesday this year, adding an additional challenge for retailers that plan special July 4 promotions.

When it comes to consumers' Fourth of July plans, 61.1% will have a cookout/barbecue or picnic, 42.5% will attend fireworks or another type of community celebration and 9.7% will attend a parade. While many said they are currently driving less (40%) and taking fewer shopping trips (41.9%) due to fluctuating gas prices, one in ten consumers (11.3%) will travel or go on vacation for the holiday. In addition, 17.3% of shoppers said they will purchase additional patriotic merchandise to celebrate Independence Day.

In general, the uncertainty about gas prices seems to have the most impact on consumers' spending decisions. Nearly 73% believe that gas prices will be more than they are now by July 4. On average, consumers expect the price for gas to rise to 3.38.

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