KANSAS CITY, MO – High gasoline prices are causing some consumers to alter their spending habits, as well as boosting creativity among retailers to get customers inside the store, reports The Kansas City Star.

“Shoppers are not only shelling out more for gas, but they also are beginning to pay higher prices for goods and services as companies pass their gas increases on to consumers. Some consumers, particularly in lower- and middle-class households, are compensating by cutting back on vacation travel and dining out, delaying major purchases or driving less, leaving retailers and restaurants scrambling,” writes the newspaper.

According to Tracy Mullin, president of the National Retail Federation, high gasoline prices “act as a tax on disposable income,” noting that as prices rise, consumer spending will be affected. “Consumers will be looking for retailers that provide the best return for their dollar. This clearly gives the advantage to discounters, warehouse clubs and online retailers over department stores and mall-based retailers.”

While retailers such as J.C. Penney, Costco, Nordstrom and Target posted better-than-expected sales, retail giant Wal-Mart experienced same-store sales that were “at the low end” of expectations.

“Fuel prices continue to be a top concern for our customers,” said Wal-Mart Executive Vice President and CFO Tom Schoewe. “We believe that our customers are consolidating their store visits and focusing their spending on consumables, a trend that we have been seeing since Easter.”

Dollar General agreed that high gasoline prices, along with higher interest and consumer debt levels, would continue to affect its consumers spending levels on discretionary purchases in the coming months.

Shoppers are also saving money by cutting back on their dining habits.

“When you ask consumers what they are doing to combat higher gas prices, eating out less is one of the ways,” said C. Britt Beemer, founder and CEO of consumer-behavior marketing firm America’s Research Group, adding that the restaurant industry “is probably even more at risk initially with $3 plus gasoline.”

Some consumers are already making lifestyle adjustments “without $3 gas,” notes the newspaper, by driving less, carpooling and shopping at warehouse for bulk food items.

“It’s trying to get your mind-set on what you really need or not--what is essential and what is a luxury,” a shopper told the newspaper.

While the luxury market has been relatively immune to higher gasoline prices, the newspaper writes that, according to the International Council of Shopping Centers, nearly 70 percent of high income shoppers surveyed (households with incomes of $50,000 or more) agree that gasoline prices are affecting their spending, compared to 59 percent in 2005.

NACS spokesman Jeff Lenard told the newspaper convenience stores are also feeling the impact of high gasoline prices. Some consumers who would spend $40 to fill up their vehicles are now paying $50, which is cutting out the left over money that would normally be spent on in-store merchandise.

“But even conveniences stores are seeing unusual twists in spending patterns,” writes the newspaper, noting that some are experiencing increases in sales for customers who rely on their stores as a one-stop-shop for gasoline and food. A retailer in upstate New York--Manley’s Might Mart--offers a free slice of pizza with each fill up to help drive customers inside the store.

“People have always complained about gas prices. But there has been a higher level of that, probably since prices hit $2.50, everything from murmuring to blaming the store for the prices,” said Lenard, adding, “There’s a lot of frustration. People feel like they can’t reduce driving and they can’t carpool because they live further away from work, or work irregular hours.”