"Female vanity a protector of profits" - The Australian
-Female vanity a protector of profits
Blair Speedy and Richard Kerbaj
September 29, 2005
RETAIL giant David Jones is confident that women's vanity will help maintain its profit growth this year as women continue to pamper themselves despite tighter family budgets.
David Jones's chief executive Mark McInnes said yesterday that his company was well placed to weather a downturn in consumer spending because the majority of its customers were women, who would cut back spending on their partners in order to maintain their own appearance.
"What tends to happen during periods of economic slowdown is that our core categories of womenswear, footwear, accessories and cosmetics continue to get year-on-year growth and women continue to spend for themselves," Mr McInnes said.
"Women reduce their spending on their partners and their homes in favour of themselves as they become a little tighter in their considerations."
And after announcing a 19 per cent increase in annual net profit for the previous financial year to $77.86 million, Mr McInnes said higher petrol prices would have "no impact" on the department store.
"We're certainly not seeing any noticeable impact on our business," he said.
Mr McInnes's theory on women was backed by shoppers yesterday. Wendy Carey did consider buying something for her husband while out shopping at the Melbourne DJs store in Bourke Street Mall but, in the end, she chose to spend $650 on herself instead.
"I bought myself two pairs of shoes and a dress," she said.
Despite restricted family budgets which have been partly brought about by escalating petrol prices, another shopper, Jane Hodgson, who was perusing the cosmetics collection on her lunch break, said women would not go without "necessities" such as make-up and perfume.
"You're still going to buy perfume, you're still going to buy stockings," said the mother of one.
"And with Melbourne Cup coming up, I've got to get a hat, got to get a dress. You know, those things you're still not going to go without."