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The following is an archived video story. The text content of that video story is available below for reference. The original video has been deleted and is no longer available.

Beauty Businesses Booming

While many industries are struggling in this rough economy, one is doing extremely well. Beauty companies have seen sales soar.

Merle Norman customer Denise Withrow says, even though she's on a budget, there's one thing she'll still splurge on.

"My two girls are in college, so we're paying for that and we do have to watch our income like everyone else, but I try to find money to spend on cosmetics without going overboard. "

Denis says when women can not splurge on a new outfit or another large expense, a $10 tube of lipstick might do the trick.

It's even something known as "The Lipstick Effect." Researchers have found women tend to spend more on make-up, during a recession.

Local cosmetic stores have seen the benefit.

Owner of the Merle Norman store in Springfield Kim Larson said, "Business is outstanding this year. We're up probably 12-15% year to date."

New customers have added to that; and it doesn't surprise long time loyal customers.

"It just makes you feel good when you're made up well with a good make-up. I've always believed that," Edith Cianferri said.

According to Ulta Beauty's corporate website, net sales for the company's second quarter are up 22%, while net income is up 46%.

Studies show women see beauty buys as an investment in their appearance that pay off.

"Women always want to look their best, whether they're looking for a job or going to the grocery store. There's no situation they don't want to look their best, " Larson said.

Many beauty companies are also reaching new customers through social media. That's one way the Springfield Merle Norman store has boosted its business.

 
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