At least that's the belief of a growing number of beauty-product chains moving into the Triangle.

Stores such as Ulta and Sephora are expanding locally -- Ulta has four locations, Sephora has two.

Overseas companies such as Lush are moving in, with its first North Carolina store, in Raleigh, slated to open in August. And premier boutiques such as Bobbi Brown's The Studio are opening storefronts to tap into the market.

"It's a very hot category," said retail analyst Ed Nakfoor in Birmingham, Mich., who follows the beauty business. "It's not even so much cosmetics. It's a lot of skin rejuvenation products, a lot of spa products, a lot of look-younger-now products."

Investing in aggressive expansion might seem risky with consumers cutting back and pinching pennies. But retailers see it as a good bet, because people are focusing more on taking care of themselves.

The new competition is causing rivals to regroup.

Drugstores and other mass merchandisers now sell full lines of cosmetics from companies such as Maybelline and Cover Girl. Beauty retailers long in the market, such as The Body Shop, are remodeling stores and adding products.

"They've got to keep churning out new products," Nakfoor said, "to stay fresh in consumers' minds."

Room to grow

U.S. sales of skin-care and hair products, as well as makeup, are expected to reach $15.7 billion this year, from $10.7 billion in 2001, data from Packaged Facts estimate. By 2010, sales are expected to reach $17.2 billion.

Growth has been bolstered by Americans' increased emphasis on taking care of their bodies, as well as an explosion in Internet shopping.

But the driving factor is that beauty retail just had a lot of room to grow, Ulta CEO Lyn Kirby said.

"The department store is right for some people, and the drugstore is right for some people, but there's this huge group in the middle," she said.

Ulta is opening 60 stores this year, including stores in Jacksonville, Fayetteville and Greensboro, Kirby said. It plans to open 80 next year.

"I think there is incremental money coming into the category, because women are more willing to buy now," she said.

Here comes Lush

Lush, started in England in 1995, has announced that it will open its first store in the state at Crabtree Valley Mall in the summer.

Lush entered the U.S. market in 2002 in San Francisco and now has 60 U.S. stores.

The company promotes its products as healthful and environment- and animal-friendly. It has a loyal following, but many of the line's fans purchase products by mail order.

"These people have been shopping with Lush before but have never been in a Lush store," spokeswoman Brandi Halls said.

"They're buying things that have to do with smell and aromatherapy, and they can't smell the products."

Deana Podelco of Raleigh is excited about the new store.

A fan of the Lush line, Podelco has ordered by mail and gotten Lush products from her sister, who lives in England.

"I think there's a lot of people who know these products and love it, and they've just been getting their fix elsewhere," she said. "I can't wait to see them here."

What is 'optional'?

With consumers cutting back on unnecessary expenditures, some might think that new beauty products would be on the optional list.

Ulta CEO Kirby doesn't think so. "We are in a consumable category," Kirby said.

"We do have to get up every day and wash our hair. So ... [the customer] does need to restock her purchases."

Lush spokeswoman Halls thinks that women are viewing their beauty regimens as necessities more than they have in the past.

"People are really getting more in touch with themselves and their bodies," she said. "Really, it seems to be not so much a luxury purchase anymore, and it becomes less of an accessory."

That's probably true, analyst Nakfoor said. Women might "trade down" to a cheaper product, but cosmetics still offer a relatively cheap way of indulging a desire for pampering.

"Nobody ever wants to feel like they have to go cold turkey in terms of not spending money or treating themselves," Nakfoor said. "It's the one area where they can indulge."

Still, there may not be room for all competitors, especially as the economy tightens.

'Prestige' sales fall

Research firm NPD Group reports that sales of luxury "prestige" cosmetics were down 7 percent for the first quarter of this year, though it noted that this year, the first quarter included one week fewer than the first quarter of 2007.

With mass merchandisers such as Target and Wal-Mart increasing their beauty selections and potentially drawing customers who are moving to less expensive products, specialty boutiques will have to be creative and responsive, Nakfoor said.

"It's inevitable that it happens," he said. "I don't think it's anything imminent. But it's like anything -- survival of the fittest."