Weak dollar boosts domestic retail as Australian cosmetics consumers shop local

Weak dollar boosts domestic retail as Australian cosmetics consumers shop local

Figures released by the bU Australia, which tracks cosmetics sales data across the nation, shows a strong rise in domestic sales at the expense of online shopping and parallel imports, as the weak dollar impacts on prices.

The Australian market as a whole saw sales rise by 6.7 percent in the June half, almost double the increase experienced in the same period last year. Meanwhile, domestic prestige beauty sales – a segment that is most attractive to online shoppers – climbed 11.8 percent, compared with a 7.9 rise last year.

The rise has been attributed not only to Australian shoppers voting with their feet – literally – as they abandon e-commerce in favour of local retailers, but also increased numbers of foreign visitors. The industry recorded a sharp rise in sales to Chinese tourists, with short-term arrivals up by 20 to 25 percent.

Department stores have benefitted the most, soaring 10 percent to take a 23 percent share of the market, while pharmacy sales rose 8.4 percent, to reach a 33.1 percent share.

 

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