Consumer Spending Shifts from Retail to 'Experiences'

Research is showing that retailers are increasingly finding themselves not only in competition with other retailers but also with dining and entertainment purveyors. For instance, while the retail industry’s sales grew about 2 percent during 2015, restaurant sales were up 8 percent and air travel spending was at a record high, reports Tulsa World.

According to Steven Kirn, executive director of the University of Florida’s retail education and research center, “People are saying, ‘I’ve got enough stuff. I want to pamper myself a bit and do something that makes me feel good.’“

Over the next few years, vacations and dining out are each projected to see a 27-percent increase in consumer spending. Millenials are increasingly contributing to this trend, as 52 percent of their holiday spending last year went toward experience-related purchases, reports a survey from PricewaterhouseCoopers (New York).

Consequently, more retailers and shopping centers are beginning to adapt to this trend, offering a variety of “experiences” to attract these customers.