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Retail sector defies cost-of-living crisis

The leisure sector is now feeling the impact of the cost-of-living crisis, with rising vacancy and declining rents. But we don’t think the retail sector will follow in its footsteps. Households are likely to continue to shift spending away from expensive leisure services and toward cheaper retail goods. And after a prolonged slump, we think retail rental growth will average 1.2% p.a. over 2023-27, compared to 0.4% p.a. for leisure.

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