Gas for the majority of Americans is now under $3 a gallon. That's good news for WalMart (WMT) because its customers tend to be middle and low income and are therefore sensitive even to minor changes in their discretionary spending power.WalMart is "cautiously optimistic" heading into the holiday shopping season.
Low gas prices will allow people to spend their money elsewhere. With the holiday season around the corner, it makes sense to use the savings on gifts for family and friends. High gas prices have been a horrible result of our plummeting economy. What better to celebrate economic improvement than with gifts and a brand new year.
When people need to shop for the holidays, they need to shop for the holidays. I don't know anyone who actually thinks about the cost of driving to the store, especially when holiday shopping. I think what will drive business into the stores is good deals and the availability of product on the shelves.
I think no matter the gas price, people are going to run out and shop as much as they can. The holiday season somehow tends to embody that in people. The whole shopping craze will always happen no matter that prices of gas. There are deals to be had so why would people stop themselves from going out!?