Worried consumers turn to comfort spending on cosmetics, electronics
21.11.2008 19:46
Shopping
- Source: cbc.ca
Canadian consumers, worried about the wobbly economy, are shelving big-ticket purchases in favour of little luxuries, some retailers are reporting. "There seems to be some kind of correlation — when times are tough, gloss [and] lipstick sales seem to boom," said Shawna Weinman, a spokeswoman for the Toronto-based Cargo Cosmetics. Weinman said sales have increased 20 per cent over the past two months, since the economy first began to falter. The lipstick index, correlating an uptick in cosmetic sales and economic downturns, was coined by Leonard Lauder in 2001 following the Sept. 11 attacks. Lauder, chairman of Este Lauder, observed that many women tended to buy lipstick as a relatively inexpensive pick-me-up. Weinman suggests many Canadians are indeed substituting less expensive products for pricier alternatives. "You might not be able to afford and have the retail therapy of a new pair of shoes or a new dress, but lipgloss, lipstick, makeup — it's that affordable luxury," she said. The urge to nest is also spurring sales of electronics, according to Wynne Powell, president of London Drugs. "[Consumers] are spending time at home and they are cocooning," he said. "They'll turn to their significant other and say, let's get that large TV that we've always been thinking about. Our sales are going through the roof on that kind of product." Meanwhile, consumers looking to stretch their dollar a little further are turning to consignment shops for deals on used items. Joy Mauro says sales are booming at her Vancouver-based Turnabout Clothing shop. "We're booked weeks in advance for appointments, and it looks like it's going to be a very good season for us," she said. RelatedInternal LinksECONOMY: The Bottom Line: Complete economic coverage from CBC NewsSears revives layaway in U.S., not in Canada76% of U.S. shoppers scaling back holiday spending: surveyDropping dollar won't raise most consumer prices until new yearIN DEPTH: The cautious season: holiday shopping could offer bargainsConsumer HeadlinesInflation rate eases to 2.6%Canada's annual inflation rate eased to 2.6 per cent in October, down from the 12-month increase of 3.4 per cent seen in September.Rona to cut out unsustainable wood, stop sales of cosmetic pesticidesRona Inc., the largest Canadian home renovation retailer, is changing its lumber buying policies in an effort to conserve the boreal forest, and will stop selling pesticides for cosmetic purposes.Auto dealers call for government helpThe industry group representing Canada's automobile dealers said Canadian politicians must take immediate steps to increase liquidity in the car markets.Slowdown forces Delta Air Lines to cut capacityDelta Air Lines on Friday said it plans to scale back capacity on its domestic and international routes because of the slowing economy.N.W.T. lotto winner takes $1M cash over car A cancer patient in the Northwest Territories has won a $1-million car, but says he's taking cash instead because he doesn't need such a fast machine in a remote town with one 12-kilometre road. Consumer Life FeaturesYOUR CARWinter tiresHelping your car get a gripTECHNOLOGYAutomotiveHow smart is your car?SAFETYRecalls and AdvisoriesBLOGFood BytesPreparing for hard timesNUTRITIONHigh fructose corn syrupJust another sugar?COMM-ODDITIESTravelDubai developers party with celebs despite economic woesPeople who read this also read …
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