July sales flat as school shopping season starts

ByABC News
August 7, 2008, 11:54 PM

— -- Consumers ages 18 to 26 report being harder hit by gas prices and more reluctant to buy clothes because of high fuel costs than do adults 27 and older, according to data provided to USA TODAY by BIGresearch.

"They may want to spend, but the cash tank is on E," says BIGresearch's Phil Rist. "When there's no money because it's in their car, they can't spend."

With higher gas prices, July same-store sales appeared to enjoy less of a boost from tax rebates, as more shoppers used rebates for food and gas than they did this spring, TNS Retail Forward says.

"The summer spike in fuel and food prices is causing shoppers to pare back their plans for tax rebates and back-to-school spending," says Frank Badillo, senior economist at TNS Retail Forward. "That's clearly squeezing spending on retail goods other than food and gas."