U.S. Consumers Shift Buying Patterns as Average Gas Price Reaches $4

U.S. consumers have continued overall spending since fuel prices rose after the Iran conflict began in late February, but many have altered routines for gasoline purchases and reduced visits to clothing and furniture stores. Executives from major retailers described the shifts as uneven across income groups.

Lower-income customers have shown more noticeable cutbacks, while tax refunds have supported sales so far.

Members of warehouse clubs are visiting fuel pumps more often but buying smaller amounts per trip. Walmart's average purchase at its stations and Sam's Club locations has fallen below 10 gallons for the first time since 2022. A trade group analysis of 130 convenience-store companies found pump transactions dropped nearly 10 percent in March and April compared with the same months last year.

In-store sales at those locations fell 10.4 percent.

Customer traffic at U.S. restaurants in April matched year-earlier levels, though higher menu prices drove a 2.6 percent rise in spending. McDonald's noted that households earning $45,000 or less have continued to reduce fast-food visits. Grocery shoppers are buying meat in bulk for freezing and avoiding impulse purchases, according to the president of an eight-store supermarket chain.

Sales data also show fewer non-grocery items sold between late April and late May.

Foot traffic at clothing, electronics, and home-furnishing stores declined for four straight weeks through early May, while visits to grocery and dollar stores increased. Toys and beauty products recorded at least an 8 percent rise in units sold during the same period.