The uncertainty surrounding last week's terrorist attacks in New York and Washington is likely to have a long-lasting effect on the habits of British consumers, a leading retail analyst warned on Friday. Richard Hyman, chairman of Verdict Research, the retail analysis group, said he anticipated a fall in spending on non-essential items, to reflect declining numbers of tourists visiting the UK. However, he anticipated other areas would benefit from a rise in people wanting to spend time at home. "The security and predictability of staying at home might be a beneficiary in relative terms," he said. "So one of the areas to watch over the next few months is going to be the DIY sector, as people spend money on improving their surroundings." He added: "On the face of it, the video rental industry will do well as people stay in and cinema attendence will do less well. People may eat out less because of their concerns and make fewer trips to the shops." The purchase of items - such as non-essential clothes and electrical goods - that could be deferred, could suffer, he said. Even marginal changes to habits and spending would have an impact on the economy, he said. "The longer term trends are that the economics of UK retail are changing and becoming more akin to the high volume - low margin model of the US. So even small changes will have an impact on what is such a volume driven sector. There will be a definite impact on the consumer economy. It's going to be a tough time."
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