Canadian consumers, worried about the wobbly economy, are shelving big-ticket purchases in favour of little luxuries, some retailers are reporting.

"There seems to be some kind of correlation — when times are tough, gloss [and] lipstick sales seem to boom," said Shawna Weinman, a spokeswoman for the Toronto-based Cargo Cosmetics. Weinman said sales have increased 20 per cent over the past two months, since the economy first began to falter.

The lipstick index, correlating an uptick in cosmetic sales and economic downturns, was coined by Leonard Lauder in 2001 following the Sept. 11 attacks. Lauder, chairman of Estée Lauder, observed that many women tended to buy lipstick as a relatively inexpensive pick-me-up.

Weinman suggests many Canadians are indeed substituting less expensive products for pricier alternatives.

"You might not be able to afford and have the retail therapy of a new pair of shoes or a new dress, but lipgloss, lipstick, makeup — it's that affordable luxury," she said.

The urge to nest is also spurring sales of electronics, according to Wynne Powell, president of London Drugs.

"[Consumers] are spending time at home and they are cocooning," he said. "They'll turn to their significant other and say, let's get that large TV that we've always been thinking about. Our sales are going through the roof on that kind of product."

Meanwhile, consumers looking to stretch their dollar a little further are turning to consignment shops for deals on used items. Joy Mauro says sales are booming at her Vancouver-based Turnabout Clothing shop.

"We're booked weeks in advance for appointments, and it looks like it's going to be a very good season for us," she said.