As the dust settles on regional property in a post COVID environment, opportunities for long term treechangers abound.
‘Wallinga Creek’ just outside Mudgee in the NSW Central West is set on 160 acres of prime agricultural land. The four-bedroom, two bathroom, single-level home was built in 2006 in Victorian Regency style. While it has been faithful to the aesthetics of the period with high ceilings and marble fireplaces, the sensibility is decidedly contemporary, with the three additional bedrooms separated from the spacious master suite by an open plan kitchen, living and dining area plus a secondary, flexible living area.
The country-style kitchen has an island benchtop crafted from NZ Kauri, with porcelain sinks and a Falcon gas cooker.
There’s a dedicated home office to allow for working from home, with separate entry available from the veranda. The wraparound veranda runs almost the entire perimeter of the house, extending the living space outdoors while shielding the house from the worst of the summer heat.
Ducted aircon, underfloor heating, ceiling fans and a wood heater maintain a comfortable temperature indoors and are offset by solar panels. The house is surrounded by stunning gardens, including an orchard.
Address: ‘Wallinga Creek’, 312 Castlereagh Highway Mudgee, NSW
Next inspection: By appointment
Expressions of interest: Close Friday December 9
Agent: Adam Woods 0409 721 703 McGrath Real Estate
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Sales of the cosmetic product are a bright spot in an otherwise bleak discretionary-goods environment
Masks off, lipstick index on.
In a gloomy economy, consumers might cut back on other discretionary purchases but will keep shelling out for small luxuries such as lipstick—or so goes the theory. “When lipstick sales go up, people don’t want to buy dresses,” Leonard Lauder, then-chairman of Estée Lauder who is widely credited for coming up with the so-called “lipstick index,” told The Wall Street Journal in 2001.
L’Oréal Chief Executive Nicolas Hieronimus called this out during the company’s earnings call in October, noting that a luxury lipstick or mascara is only €30, making it an “affordable treat.” Sales at L’Oréal rose 9.1% in the third quarter compared with a year earlier despite slower sales in China due to Covid-related lockdowns. Coty, maker of CoverGirl makeup, said organic sales grew 9% over the same period.
Beauty sales have also been a rare bright spot for retailers: Target said beauty category sales grew roughly 15% in its quarter ended Oct. 29 compared with a year earlier, with Ulta Beauty shops in Target tripling their total sales volume over that period.
While Macy’s namesake stores saw comparable-store sales decline last quarter, its beauty-focused Bluemercury chain saw same-store sales grow 14% last quarter compared with a year earlier. Kohl’s locations with Sephora are outperforming the rest of the department-store chain.
Of the 14 discretionary categories that market research firm NPD Group tracks, prestige beauty—products you might find at a department store or a Sephora—is the only category that is seeing unit sales growth year to date. And lipstick, which suffered during the masked-up pandemic, is making up for lost time.
Lipstick sales have grown 37% through October this year compared with a year earlier, according to Larissa Jensen, beauty industry analyst at NPD Group. That is an acceleration from the 31% growth seen during the same period last year. Lip product is the only major category within prestige beauty where sales are actually up compared with pre-pandemic levels, according to Ms. Jensen.
Cosmetic companies have also called out strong sales in fragrances, calling it the “fragrance index.” Demand has been so robust that there is an industrywide fragrance component shortage, Coty said in a press release announcing third-quarter earnings earlier this month. CEO Sue Nabi said during the call that Coty hasn’t seen any kind of trade-down or slowdown, also noting that consumers are shifting away from gifting perfume to buying it for themselves.
“A big piece of it is just a shift in what wellness means to consumers,” NPD Group’s Ms. Jensen said. “Beauty is one of the few industries that are positioned to meet [consumers’] emotional need. It makes them feel good.”
While the lipstick effect could be observed in the recession in the early 2000s, that wasn’t the case during the 2007-09 recession, during which lipstick sales declined alongside other discretionary purchases. Part of this might have had to do with category-specific dynamics.
There was a lot of newness in the cosmetic industry in 2001, including lip gloss, a relatively nascent category back then. That tailwind simply wasn’t there starting in 2008, though nail polish turned out to be consumers’ small indulgence of choice in that period. This time around, consumers may be eager to show off a part of their face that was hidden behind a mask for so long during the pandemic.
In an otherwise bleak environment for companies selling discretionary goods, those in the business of selling cosmetics look well poised to come out of the holiday season looking freshened up.
From faulty family villa to modern beach house.