Sally Beauty Closing Stores

[Alpha8472]

They are closing 350 stores in December 2022.

Do people actually still shop at these stores? You can find everything cheaper online.

https://chainstoreage.com/sally-beauty- ... eds-stores

[pseudo3d]

Less than 10% of their stores. That's not a disaster unless it's the first of several waves.

[storewanderer]

People still shop there, but they are terrible. High prices, charge a fee for paper bags in all stores (maybe they stopped this), dark/dreary store environment.

This isn't many stores considering how many stores they have though. Feels like a drop in the bucket.

I don't think these stores need to do much in sales to survive.

[ClownLoach]

People still shop there, but they are terrible. High prices, charge a fee for paper bags in all stores (maybe they stopped this), dark/dreary store environment.

This isn't many stores considering how many stores they have though. Feels like a drop in the bucket.

I don't think these stores need to do much in sales to survive.

Sounds like the new CEO (who I have some experience with - she is extremely sharp) is basically trying to replace the entire dreary, dark store fleet with new locations. They probably could take 5 stores in a market and replace them all with only two new ones that are clean, bright and contemporary. Most of these appear to be very low budget plain stores and they won't survive against competitors like Ulta and Sephora with such a poor experience in store.

[Brian Lutz]

I've only ever been in one of these stores once, but always got the impression that it was more of a B2B operation than a consumer focused one, selling mostly to salons but also selling to whoever might walk in (similar to the "Cash and Carry" type stores.). In fact, there are other similar operations (most notably Cosmo Prof) which seem to run similar stores but which explicitly sell only to licensed professionals. It's unusual to see B2B businesses operating out of retail storefronts like they do, and there are probably only a few industries where there would be enough demand for it (industrial supply stores like Grainger, Fastenal and Platt Electric used to operate this way but at some point started allowing the general public to shop there as well.)

[rwsandiego]

I've only ever been in one of these stores once, but always got the impression that it was more of a B2B operation than a consumer focused one, selling mostly to salons but also selling to whoever might walk in (similar to the "Cash and Carry" type stores.). In fact, there are other similar operations (most notably Cosmo Prof) which seem to run similar stores but which explicitly sell only to licensed professionals. It's unusual to see B2B businesses operating out of retail storefronts like they do, and there are probably only a few industries where there would be enough demand for it (industrial supply stores like Grainger, Fastenal and Platt Electric used to operate this way but at some point started allowing the general public to shop there as well.)

CosmoProf is owned by Sally's parent, Sally's Beauty Holdings.

In the olden days, Sally was geared towards professionals and salons but also sold to consumers. IIRC, customers had to present a license in order to buy professional products. Now, it seems they sell high-end non-pro products as well as salon supplies such as disinfectant, PPE, combs, brushes, etc.

[storewanderer]

CosmoProf is owned by Sally's parent, Sally's Beauty Holdings.

In the olden days, Sally was geared towards professionals and salons but also sold to consumers. IIRC, customers had to present a license in order to buy professional products. Now, it seems they sell high-end non-pro products as well as salon supplies such as disinfectant, PPE, combs, brushes, etc.

I think this is still the case with them being geared more toward professionals. I think there is some kind of loyalty program for them.

The one thing with Sally is these stores, when I look at them, basically, once they open, they never seem to go out of business. They also do have some newer stores that seem to follow the same pattern as the older stores. Small strip mall spaces, narrow aisles, dark, no atmosphere. But they are packed full of products given the space they have.

I don't get the impression they are targeting the same exact customer needs as Ulta as Ulta does not have so many supplies and such, but focuses more on ready to use cosmetics.

So these store closures may really just be getting rid of some stores in nearly vacant shopping centers that do no volume.

[cjd]

The one here is in a power center.

Never been there but it does strike me more as a B2B store.

Usually when I hear about it, it’s more for specialty things. They sell the bleaching agent that’s used in the “retro rite” process (deyellowing plastic video game consoles, etc). To get this chemical can be difficult for the average non salon owner.

And a lunch lady once told me you can buy light colored hairnets there instead of the typical black ones.

[buckguy]

They seem to have opened a lot of stores very quickly, so it wouldn't be surprising if they have quite a few underperformers.

I couldn't find a list, but they started announcing individual closures a month ago, including 2 stores in the DC suburbs--Olney (not much of major retail destination) and Germantown/Gaithersburg in a healthy major power center development.