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business Monday 5 SepteMber 2022
Americans splurge on beauty, despite pullbacks elsewhere

By HALELUYA HADERO and pandemic as Americans
ANNE D’INNOCENZIO stayed home — or behind
AP Business Writers masks -- and shifted their
NEW YORK (AP) — Like interests towards wellness
many Americans, Karla and skincare as stimulus
Maldonado has been cut- payments flooded bank
ting back her spending to accounts, helping balloon
spare her wallet from rising the savings of consumers
costs: She is eating out less who were already spend-
and attending fewer social ing less on traveling or eat-
events to curb the impact ing out due to pandemic
of high gas prices. lockdowns. Now, makeup
But the 26-year-old social is roaring back.
worker of Portland, Oregon, Americans have bought
hasn’t skimped on her eye more eye, face and lip
makeup — the mascara, makeup — roughly 2%, 5%
eyeliner and eyeshadow and 12% respectively — in
she typically wears to work a year-over-year analysis of
just above her face mask. sales across stores, accord-
“That’s something I can’t ing to the market research
go without,” Maldonado firm IRI.
said. And she doesn’t seem At Macy’s, CEO Jeff Gen-
to be alone. Many major nette noted in an earnings
retailers slashed their finan- This photo provided by Kohl’s shows the interior of the Sephora section inside of the Kohl’s call late last month that
cial outlooks for the year department store in Ramsey, N.J. consumers have focused
after seeing shoppers pull Associated Press on deals and cut back on
back on many discretion- overall sales spiked nearly Netflix binges at home. can no longer afford. For purchases amid high infla-
ary items in the latest quar- 17% in its most recent quar- But another possible ex- others, their version of lip- tion. Still, they managed
ter. But among the notable ter, compared to the same planation for why beauty stick might be cheap beer to buy beauty products as
exceptions: beauty. period last year. is thriving when consum- or a $5 Caramel Macchi- well as travel-related items
Target, Kohl’s, Macy’s and Americans, once stuck be- ers are more apprehensive ato from Starbucks, which like luggage, shoes and
Nordstrom all highlighted hind Zoom screens in the about their spending is a reported record revenue clothes to wear to the of-
strong sales of beauty items thick of the pandemic, are long-held theory known as in August for its fiscal third fice, Gennette said.
in their fiscal second-quar- out and about and want- the “lipstick index,” which quarter. Meanwhile, Kohl’s reported
ter earnings reports issued ing to look their best. Co- posits that lipstick sales rise The lipstick theory has held, that shoppers were mak-
over the past few weeks. workers — some of whom during times of economic though not always. Make- ing fewer trips, spending
Walmart, the nation’s larg- are meeting each other downturn. up sales spiked during the less per transaction and
est retailer, said that it’s see- for the first time — are try- The reasoning goes: When Great Depression and the shifting toward value-ori-
ing increased momentum ing to make an impression. consumer sentiment de- recession in the early 2000s. ented store brands. But at
in its beauty business, cit- Meanwhile, people are go- clines, Americans seek es- But sales declined during its Sephora beauty shops,
ing strong sales in cosmet- ing out on dates and get- capism by looking for small the 2008 economic col- launched last year as part
ics as well as skin and hair ting together for summer ways to indulge them- lapse, according to market of a partnership with the
businesses. Meanwhile, Ulta parties and barbeques af- selves, such as by purchas- research firm NPD Group. beauty chain, shoppers are
Beauty, the largest beauty ter months of pandemic- ing a new lipstick instead The same happened dur- spending freely on skincare,
retailer in the country, said induced leisurewear and of pricier alternatives they ing the early days of the makeup and fragrance.q

Bed Bath & Beyond chief financial

officer Gustavo Arnal dies

By The Associated Press iner’s Office will determine knowing him,” said Harriet
undefined the cause of death. Police Edelman, independent
UNION, N.J. (AP) — Gus- said an investigation was chair of the company’s
tavo Arnal, the chief finan- ongoing. board, in Sunday’s state-
cial officer of retail chain Arnal joined the company ment.
Bed Bath & Beyond, has in May 2020 after previous Bed Bath & Beyond has
died, the company con- stints at Avon, Walgreens faced turbulence re-
firmed on Sunday. Boots Alliance and Procter cently: Its shares made a
The company said Arnal & Gamble. monstrous run from $5.77
died on Friday. Accord- “Gustavo will be remem- to $23.08 over a little more
ing to the New York City bered by all he worked than two weeks in August, Bed-Bath-&-Beyond-Strategic-Update,Shoppers enter and exit
Police Department, po- with for his leadership, tal- in trading reminiscent of a Bed Bath & Beyond in Schaumburg, Ill., Jan. 14, 2021.
lice found the 52-year-old ent and stewardship of our last year’s meme-stock Associated Press
unconscious with injuries Company. I am proud to craze, when out-of-favor
showing he fell from a have been his colleague, companies suddenly be- stores and lay off workers sey, said it will close about
building in Manhattan. He and he will be truly missed came darlings of smaller- in a bid to turn around its 150 of its namesake stores
was pronounced dead in by all of us at Bed Bath pocketed investors. On beleaguered business. and slash its workforce by
the scene and the New & Beyond and everyone Wednesday, the com- The home goods retailer 20%.q
York City Medical Exam- who had the pleasure of pany said it would shutter based in Union, New Jer-