Cosmetic and toiletry retailers are outperforming the industry due to consumer desire for experiential retail experiences, according to a report by The Sydney Morning Herald.
With the cosmetic and toiletry retailing industry worth an estimated $5 billion a year, department store landlords are said to be making an average annual turnover of around $60,000 from cosmetic sellers, while a 400-metre standalone store in a prime CBD location is said to turn over around $16 million a year.
The stand-out performance in comparison to traditional clothing retailers is said to be the lure of experiential experiences, instant gratification and the variety of products on offer.
Speaking to the Syndey Herald, Matt Hudson, National Director and Head of Retail leasing at Cushman & Wakefield, said, “Cosmetics allow the consumer access to luxury brands and experience at an affordable price.
“Beauty retailing is the backbone of department stores and offer some of the strongest sales per square metre for landlords. From a yield perspective, the returns are some of the best margins for the operator and landlord.”