Paulette Harder says it's harder to cut your spending on cosmetics than on clothes.
According to analytics firm Circana, compared to cosmetics sales, clothing sales increased just 4% this year and footwear sales fell 2%.
Even as [shoppers] turn away from purchasing larger products, they continue to treat themselves to small luxuries and beauty plays an important role in this.
A quote from Alecsandra Hancas, analyst at Circana
This concept is also observable in other sectors, explained Jacques Nantel, professor emeritus at HEC Montréal and specialist in retail, during an interview on Radio-Canada in 2022. He names, among other things, games of companies, organic products and alcohol as examples.
He adds that during a period of economic turbulence, these products can serve as an anchor. We say to ourselves ''I'm going to cut everything, but there are things that do good,' he says.
The cosmetics industry is also benefiting from the trend towards well-being, according to a report from the firm McKinsey.
Much of the growth in beauty sales in Canada isn't just about traditional makeup products like lipstick. Circana's study claims it includes skincare products, such as eau de toilette as well as facial creams and serums.
This fusion between well-being and beauty products should become even more pronounced according to the firm McKinsey. It projects annual growth in the wellness industry of 10% through 2027.
The sale of cosmetics has become a reliable economic driver for pharmacies.
Galen Weston, chairman of the board of directors of Loblaw, which owns Shoppers Drug Mart pharmacies, said during the latest earnings conference call #x27;company that during the last quarter, the beauty sector exceeded its expectations.
Cosmetics have seen particularly high growth over the past two years at London Drugs pharmacies. Last year, these were our highest sales ever, and they will be even higher this year, says Mike Cummings, director of the cosmetics business unit.
Moreover, TikTok has become a huge growth engine for the cosmetics industry, says Alecsandra Hancas, analyst at Circana. Trends on social media can create a frenzy of interest in a product. We are working to understand who is doing what and are monitoring the situation carefully, said Mike Cummings.
The cosmetics industry is reliant on the next TikTok trend.
A quote from Mike Cummings, Cosmetics Business Unit Director, London Drugs
With information from Paula Duhatschek