Consumers in the UK are likely to spend less in retail this year, according to a recent forecast.
The research, published by KPMG and Ipsos Retail Think Tank, predicts that retail sales in 2016 will decrease by 0.1 per cent in comparison to last year. Instead, consumers are expected to spend their newfound cash on experiences, as opposed to materialistic items.
Leisurely nights out are predicted to be the most popular way for consumers to spend money. Last year saw a rise in expenditure across the hospitality industry, with Brits choosing to splash their cash on leisure rather than retail.
Maureen Hinon, retail analyst at Conlumino, said: "Consumers are looking beyond retail for goods and services to spend their money on.
"This is making it much harder for an oversubscribed retail sector. Leisure, culture and entertainment have shown much stronger growth than retail over the past five years and this trend is being exacerbated by an ageing population."
As well as the hospitality sector, predicted areas of consumer spend also include mortgage repayment and home improvements.
David McCorquodale, UK head of retail at KPMG, believes that the introduction of the new National Living Wage in April will serve as a catalyst for the reduction in retail spending.
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