Housing recovery could drive more consumers to spend, Deloitte says
NEW YORK — Consumers showed more confidence in October as a recovery in the housing market indicated a greater willingness to spend — especially among people who shop through multiple channels — but some headwinds remain, and the issues in Congress could threaten the gains, according to a new report by Deloitte.
The monthly Deloitte Consumer Spending Index rose significantly last month, to 4.02, from September’s 3.54. The index measures tax burden, initial unemployment claims, wages and home prices.
"Rising consumer confidence should give retailers reason to celebrate during the holiday season, but the winds may shift in January, which should encourage retailers to make the most of this good news now," Deloitte vice chairman and retail and distribution sector leader Alison Paul said, referring to the so-called "fiscal cliff" of tax increases and spending cuts set to take effect on Jan. 1, 2013, unless Congress and the Obama administration can come to a budget agreement. "The consumers who appear most optimistic about their holiday spending are those who have been coined ‘omnichannel’ shoppers, or those who use all channels to shop, including mobile phones, online and the store."
Paul said those omnichannel consumers planned to spend 71% more on gifts than those who shop only in stores, while 45% planned to shop online. "These spending intentions give retailers reason to interact with consumers across physical and virtual storefronts to augment their messages and sales this holiday season," Paul said.
But some headwinds remain, according to the report. The tax burden increased slightly, but Deloitte noted that the rise is a sign of healthy growth in incomes. Meanwhile, rising prices for food and energy continued to weigh down on real wages, which fell slightly to $8.68. Jobless claims moved slightly higher, to 373,800, from 371,000 in September. But home prices increased, giving a lift to consumer confidence.
"The housing market appears to be recovering after bottoming out, while energy prices have begun to recede and lift some of the pressure on wages, boosting confidence and consumers’ willingness to spend," Deloitte chief economist and author of the index Carl Steidtmann said. "This may only be sustainable over the long term if legislative issues are resolved, including the fiscal cliff and debt ceiling, as consumers will start to see their first tax increases at the beginning of the year."
ReportersNotebook — Beauty Care, 11/19/12
SUPPLIER NEWS — Pacific World’s at-home gel polish brand SensatioNail is gearing up for the holiday season with the launch of a limited edition 2012 holiday collection, SensatioNail Glitter Gel Polish Duos. Debuting in three festive shades — Confetti Glitz (steel gray/silver glitter), Champagne Cocktail (black/gold glitter) and Midnight Kiss (deep red/red glitter) — each set offers a traditional gel manicure with light-reflecting, sparkling effects.
NYX Cosmetics has announced new retail partnerships with Ricky’s NYC and PacSun. In early October, NYX launched into all 619 PacSun store locations, selling NYX in all three categories of the California-based company’s retail locations. Featured products include Glam Shadow Stick, Mega Shine Lip Gloss, Super Skinny & Super Fat Eye Marker, Roll on Eye Shimmer, Fabulous Eye Lashes and Studio Liquid Liner, and Liquid Crystal Liner.
In mid-October, NYX Cosmetics launched into Ricky’s NYC and will initially be sold in 28 stores. Ricky’s is the first major retailer in the heart of New York City to carry the NYX line, offering more than 384 SKUs, featuring products such as The Curve, Roll on Eye Shimmer, Soft Matte Lip Cream and Collection Noir.
Somersets, a line of shaving and skin care products from the U.K. that made its U.S. debut earlier this year at NACDS Marketplace, has officially announced its arrival in the United States.
The brand’s launch in the United States is marked with the unveiling of 11 products and is supported by the launch of a new website at Somersets.com.
Somersets already has been ordered by Duane Reade and Shopko, and is available now at DrugStore.com and Somersets.com. The suggested retail price ranges from $6.99 to $14.99.
RETAIL NEWS — Ulta Beauty has appointed Scott Settersten, VP accounting, as acting CFO. Settersten replaces Bruce Hartman, who resigned from his position as CFO by mutual agreement with the company.
The company has initiated a search for a permanent CFO. Settersten will be considered for the permanent CFO position.
New products provide value-added benefits
Sales of facial anti-aging products continued to slip — perhaps as consumers continue to watch their spending or try to navigate the inundated anti-aging market — while sales of facial moisturizers experienced an uptick, according to data from SymphonyIRI Group.
Sales of facial anti-aging products for the 12 weeks ended Oct. 7 slipped nearly 2% at total U.S. multi-outlets, which covers supermarkets, drug stores, mass market retailers (including Walmart), military commissaries, and select club and dollar retail chains, according to SymphonyIRI. Sales of facial moisturizers rose about 3.5% during that same period.
Looking to drive sales at retail, manufacturers continue to churn out products that promise to deliver added benefits and greater results.
One example is Vichy Laboratoires, which launched in October its new Normaderm Total Mat moisturizer to target all causes of shine — even sweat — for an eight-hour clean-skin feeling. Normaderm Total Mat is designed to produce an immediate and lasting matte effect by absorbing excess sebum and sweat on the skin. It contains salicylic acid in a 0.5% concentration as an exfoliating agent. Normaderm helps to unclog pores and clear imperfections, and has a retail price of $24.50.
Vichy also launched in October its new ProEven Daily Eye Corrector to target all signs of dark circles and uneven tone while addressing excess melanin at the skin surface for a more unified and rejuvenated appearance. ProEven Daily Eye Corrector has a price of $39.50.
Boots No7, which is celebrating its 77th anniversary, is shaking up the typical three-step daily skin care routine with the introduction of a new two-step cleansing and moisturizing system — No7 Beautiful Skin — that eliminates the need for a toner. In addition, the brand continues to focus on anti-aging with a new range for mature skin — No7 Lift & Luminate — that includes day, night and eye creams.
Boots brand products are available in the United States at Target, Target.com, ShopBootsUSA.com and Drugstore.com, with select No7 skin care in Ulta Beauty.
In addition, Specific Beauty — a skin care brand developed by Dr. Heather Woolery-Lloyd, a certified dermatologist who focuses on “multihued skin tones” — has expanded its portfolio with the new Professional Moisture Complex. The patented, paraben-free moisture complex works to hydrate, calm, soothe and brighten the skin. The manufacturer’s SRP is $19.99.
The article above is part of the DSN Category Review Series. For the complete Skin Care Sell-Through Report, including extensive charts, data and more analysis, click here.