New Data: ‘Tis the season of the Lipstick Effect
The festive season is all about treating those we love, and for many of us, this includes “treating yourself.”1
New data released today by Lightspeed Commerce reveals that YoY transactions of the “little luxuries” that make us feel special, are on the rise.
Increasing sales of smaller self-indulgent items, combined with worsening consumer sentiments about the economy, strongly suggest the “lipstick index” is in full effect (the theory is that sales of “affordable luxuries” rise in the face of challenging macroeconomic conditions). Meaning, consumers are looking for ways to feel luxurious, without breaking the bank.
The following data* is based on transactions from thousands of retailers using the Lightspeed Retail platform comparing November 2022 to November 2023:
– Food and Beverage have the highest YoY growth, with the number of transactions up 23.4% from last year. The holidays are one of the few times during the year we allow ourselves to eat a box of fine chocolates, or prepare ourselves an exotic, decadent meal!
– Health and Beauty products have seen the second highest growth rate at 15.3% YoY. With the lipstick index in effect, it’s no surprise sales of items like lipstick are up.
– Finally, rounding out the top three are wine & liquor sales, with 11.3% YoY growth. Who doesn’t feel good drinking a nice bottle of wine alongside a crackling fireplace?
For more information visit Lightspeed Commerce.
