Lower gas prices give retailers hope

Helen Chase is optimistic about the upcoming Christmas season now that gas prices have fallen.

Chase, owner of Tucked Away in Bonners Ferry, also hopes residents will continue to shop locally even though gas prices have dropped from a record statewide high of $4.16 a gallon in July to around $2.15.

“I’m thinking they could go out of town,” she said. “I’m hoping that they learned through the recent gas crisis that the downtown merchants provided mostly everything they need and that they continue to support us through the holiday season.”

Before gas prices dropped, Chase saw a lot of people looking, but not spending. That is now starting to change.

“I’m seeing a little more spending now that they have a little more extra money,” she said.

The girls at Under the Sun haven’t seen much of a change in business.

“People are staying home, but they are still coming in and shopping,” said employee Kynsie Yount.

Maureen Shelman, owner of Shelman’s Home Furnishings, also hasn’t seen a huge change in business due to lower gas prices.

“I haven’t seen a great deal, but I’m hoping some of my freight costs will start to come down,” said Shelman. “I think the gas prices are just a positive for people because they don’t feel like they are spending $3 a gallon on gasoline, so they are putting money back in their pockets.”

She hopes people turn around and spend that extra money locally.

“I hope people do their Christmas shopping here because local shopping is a positive thing,” said Shelman. “Every downtown business gets hitup for donations, if people don’t do the majority of their shopping in Bonners Ferry, we can’t donate.”

After peaking at $4.16 a gallon in July, Idaho’s regular unleaded pump price has dropped $1.05 in the past month to an average $2.62.

“Gas prices will continue to drop for now, though it’s difficult to determine how low oil prices can go before the market bottoms out,” according to AAA Idaho spokesman Dave Carlson.

Oil prices are currently trading in the mid $60 range, down from a high of $147.11 in July. Gasoline futures, which are a more direct predictor of where pump prices may go in the next month, are also down sharply, trading below the $1.50 level, compared to record highs in the $3.55 range earlier this summer.