Sally Beauty to implement cost-reduction measures

International speciality retailer and professional beauty supplies distributor Sally Beauty Holdings has unveiled cost-reduction measures that are designed to help fund the company’s key long-term growth initiatives.

As part of the measures, the firm will make a number of job cuts at its corporate headquarters in Denton, Texas, US.

The layoffs are part of an expanded restructuring plan aimed to drive long-term profitable growth.

Additional cost-saving initiatives include re-sourcing products and ingredients, indirect procurement and optimising store operating expenses and inventory management.

Sally Beauty Holdings president and CEO Chris Brickman said: “We have dedicated a substantial amount of work over the last several months into the development of initiatives that we expect will generate meaningful financial benefits, within both product margin and general and administrative (G&A) expenses.”

The company expects the new organisational efficiency actions to generate between $14m and $15m in annual savings.

Brickman added: “We will be reinvesting in strategic initiatives to accelerate growth in colour and care, which combined represent more than half of Sally’s revenue in the US and Canada.

“Similar to how our Beauty Systems Group segment is the colour and education destination for the professional stylist, Sally’s primary goal is to have every customer feel confident in her ability to colour and care for her own hair, and we will tailor our assortment, service and education to ensure we are her go-to store for that purpose.”

Sally Beauty sells and distributes its products through 5,177 stores, including nearly 184 franchised units.