What: Customers have less time for leisure, but are willing to spend more to make the most of it.

Why it is important:  Department stores are all about experience and disposable income. If they are able to provide the most compelling experiences, they would be able to get the lion’s share of the budget dedicated to leisure.

The labor-leisure trade-off concept in economic theory suggests an optimal balance between work and leisure for each individual. Despite increased productivity over the past 50 years, leisure time hasn't grown correspondingly across OECD countries. Germans spend 23% of their time on leisure activities, while Mexicans spend only 12%, with TV-watching being the most popular leisure activity.

Interestingly, the decline in leisure time seems to have led to increased leisure spending. In the U.S., leisure time dropped by 48 minutes per day from the 1990s to the 2010s, but leisure spending as a share of total consumer spending has risen since 2013, growing from 9.5% to 13% by 2022.

The evolution of leisure spending