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Cosmetic retailers are the sought-after tenants

It has been dubbed lipstick wars in the past, but now the retail landlords are embracing the cosmetics sector as one of the most favoured tenant in their malls.
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While beauty and cosmetics are sought-after online, the stores, such as Sephora and Mecca Cosmetica, have successfully breached the barriers between the internet and bricks and mortar as their shops offer an experience.

In the latest results for the retail landlords, cosmetics was one of the best performers in terms of sales. As a result, as apparel brands close or look for smaller premises, the cosmetic retailers are moving in.

Sephora will open its 11th n store in Westfield Bondi Junction, which adds to Sydney’s five stores in Pitt Street Mall, Broadway, Macquarie, Warringah, Macarthur Square and the soon to open Charlestown in the Hunter Valley location. It launched in in 2014 and is owned by LVMH.

Libby Amelia, the Sephora country manager, said it’s been a big year for Sephora , and there’s no sign of the brand slowing down.

“On August 21 we launched a new Wellness category on Sephora苏州夜网.au, and Westfield Bondi Junction will be one of our first retail locations to house the new in-store hub, really completing the loop on our omnichannel offering,” Ms Amelia said.

“With brands like KORA Organics, The Beauty Chef and WelleCo, alongside luxe haircare brand Ouai and natural efficacious skincare like Peter Thomas Roth and Ole Henriksen, we are bringing Bondi the best in beauty, from the inside out.”

Westfield regional manager, Scott Moore, said Bondi Junction customers seek the best of international and n brands and “we’re thrilled to welcome Sephora to Westfield Bondi Junction”.

Susan MacDonald, head of retail at Mirvac, said while food and beverage were one of the best performers for the group, “the category such as general retail and particularly cosmetics” has been strong. “We are seeing food and cosmetics becoming the new fashion,” Ms MacDonald said.

This comes as Craig James, the chief economist at CommSec, said the perception is that n consumers are gloomy.

But in reality the latest reading of consumer sentiment is broadly in line with short and longer-term averages.

“Consumers are not exuberant, but neither are they significantly downbeat. Simply there are a lot of issues at present so it is probably better to describe consumers as reflective,” Mr James said .

“And clearly if consumers were very pessimistic, they wouldn’t be spending the way they are at present. Annual growth of real retail spending is 2.5 per cent – in line with the decade average. And the 1.5 per cent real lift in retail spending for the June quarter hasn’t been bettered in eight years.”

He said the measure of whether it was a good time to buy a major household item has generally held above the long-term average since May, confirming that consumers are open to spending if the price is right.

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