Sally Beauty Supply will close 350 stores and two distribution centers starting in December. 
After fourth-quarter losses, the company is rolling out a new optimization play to save an estimated $50 million in expenses in 2023. 
We visited a Sally Beauty Supply store in New York City to see why the company is struggling.

Sally Beauty Supply announced on November 11 that it will be closing 350 of its stores and two distribution centers in Oregon and Pennsylvania as part of its new optimization plan.

After several quarters of piloting store closures, the company said its newest plan is estimated to save approximately $50 million in expenses with about $10 million in adjusted operations earnings for the 2023 fiscal year.

Source: Sally Beauty Holdings

In its Q4 earnings, Sally Beauty reported $962.5 million in net sales, which is a 2.8% decrease from 2021. The company attributed this decrease to being “unfavorably impacted by inflationary pressures that continued to impact consumer behavior and supply chain challenges.”

Source: Sally Beauty Holdings

The majority of the store locations that are set to close are in the US, and most of them will permanently shutter starting in December.

I visited a Sally Beauty Supply store in the Hell’s Kitchen area of Manhattan to see why the company is curtaining so many of its brick-and-mortar shops.

As soon as I walked through the store doors, I spotted a clearance section that was set up to the left of the entrance. The majority of the products on sale were makeup or hair-related.

More than half of the store was dedicated to hair care and styling products and tools.
For hair stylists and salon owners, Sally Beauty seemed like a good supply store to go to to find specialty brands and products in bulk at affordable prices.

The store had a plethora of curlers, clips, and capes for haircuts. There was also a more limited selection of hair extensions and wigs for sale.

Hair styling spray bottles in different shapes and sizes were all priced under $4.

Styling tools like hair brushes and combs were affordably priced, with the bulk of them being under $15.

An aisle in the middle of the store was stocked full of hair dryers, straighteners, and curlers.

There were also additional styling appliances like clippers for sale.

A sign that said …read more

Source:: Business Insider

      

Sally Beauty Supply is closing 350 stores. I visited a location and saw why the company is struggling.

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