With gas prices soaring to $6.50 in California and topping $4 in many states, some retailers are seeing a pull back on spending, while others say business is as brisk as ever.
Business dropped off by 30 to 35 percent due to higher gas prices for a large distributor/retailer in California. “We’re very slow in SoCal because gas prices have gone so high in the past few months,” said the owner.
Audio Systems of Moreno Valley Montclair, CA said walk-ins are fewer and business is down about 25 percent. Store manager Yacdiel Ruiz said uncertainty about the war in Ukraine and its impact on the market here is also contributing to customer skittishness.
But Mark Cardoza, Cardoza & Co, rep in Pleasanton,CA near San Francisco, said most dealers are still selling strong despite higher gas prices. “We had our biggest month ever last month. We also had some inventory [after months of little inventory], but my backorder sales stayed about the same,” Cardoza said.
More than gas prices, he worries about the return to restaurants and travel. “That’s the thing I’m most fearful of. I think everyone should have learned that it’s not the shop down the street they are competing with, it’s the other interests [restaurants, etc].”
In the northeast, the selling season hasn’t fully kicked in at some retailers, but it’s hard to tell if the culprit is gas prices or the cold weather or delayed tax refunds. “I have not yet seen those people who come in with those green H&R Block credit cards [tax refunds], noted Jodi O’Connor of Jo-Di’s Sound Center. “I think it’s the cold. I know when usually I get a beautiful Saturday in March I’m slammed. Our last couple of Saturdays have been cold and rainy.”
Avenue Sound, NY said it’s seen less foot traffic in the past few weeks. “It’s not just in my store. I talk to a lot of the local shops around here and foot traffic is slow. I’ve noticed it on the road, there’s less cars on the road today than yesterday and there was less yesterday than the day before,” said Vikas Moolchandani, speaking in late March.
Not so in Louisiana, said Alan Benit of Ricky Smith’s Audio. “I’m looking out the window. It’s the same amount of traffic as always on the road. We’re in an oil and gas area. So a lot of our customers are employed by oil and gas companies that profit sometimes when the price of gas is up.”
Sound Depot & Performance, FL also said it has yet to see an impact from gas prices.
On the supplier side, VOXX said it’s seeing a “little bit of a slowdown” due to gas prices, but its rear seat video business is up as the summer travel season begins.
You can go over to CNET here to view which states have the lowest and highest gas prices.
Photo via ABC7News
source: https://www.ceoutlook.com/2022/04/18/gas-prices-impacting-12v-sales/
