Retail stocks fall as gas prices and record-low sentiment pressure discretionary spending

Shares of Gap (GPS), Ollie’s Bargain Outlet (OLLI), Petco (WOOF) and Five Below (FIVE) fell May 14, 2026, as investors weighed the risk that higher gasoline prices will squeeze household budgets and curb discretionary retail spending. Gas prices have risen to their highest levels since 2022, increasing pressure on lower- and middle-income consumers. The concern coincides with a sharp deterioration in confidence: University of Michigan consumer sentiment fell to 47.6 in April, the lowest reading in the survey’s 74-year history and below levels seen during the Great Recession and the pandemic. Petco shares were among the movers. The stock is down 10.4% year to date and recently traded at $2.56, 41.4% below its 52-week high of $4.36 from July 2025. RBC Capital reaffirmed an “Outperform” rating 25 days earlier and maintained a $4 price target after meetings with Petco management.