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Sally Beauty Holdings Inc. plans to close 350 locations by the end of the year and Orlando Business Journal has learned six of those closures will be in metro Orlando, with a handful more on the region's periphery.
Why this matters: Store closings and associated layoffs can have a dampening effect on the local economy, while also potentially creating opportunity for new concepts that may move into the vacated retail spaces.
The move for Sally Beauty (NYSE: SBH) was announced as part of the fourth-quarter earnings announcement for the Denton, Texas-based distributor and retailer of professional beauty products.
The announcement by the retailer noted it "has been piloting store closures in various markets with the goal of maximizing the value of its large store portfolio and providing a seamless omni-channel experience to its customers," and the company is accelerating its store optimization plan that features the 350 closures based on "positive sales recapture rates and improved profitability within those markets."
A list provided by a company spokesperson shows Sally Beauty plans to close 27 stores in Florida, and six of those are in Orange, Lake, Seminole and Osceola counties.
The Orlando-area locations slated to close are at:
- 10584 W. Colonial Drive, Ocoee
- 134 State Road 436, Casselberry
- 3725 Lake Emma Road, Lake Mary
- 7433 W. Colonial Drive, Orlando
- 3669 S. Orlando Drive, Sanford
- 4807 W. Irlo Bronson Highway, Kissimmee
The retailer's website shows 30 stores in metro Orlando.
Additionally, the periphery of the metro along the state's east coast, including Brevard and Volusia counties, also will see closures.
These stores in Brevard and Volusia counties are slated to close:
- 160 Malabar Road SW, Palm Bay
- 991 E. Eau Gallie Blvd., Indian Harbour Beach
- 351 W. Granada Blvd., Ormond Beach
Sally Beauty's website shows 13 stores in Brevard and Volusia counties.
It is unclear how many employees will lose their jobs as part of the Orlando-area closures.
In addition to 350 store closures, two distribution centers in Oregon and Pennsylvania also will close in December, the company said, with their product volume transferred to larger distribution centers.
The intent is for the optimization plan to save Sally Beauty approximately $50 million in expenses in its 2023 fiscal year, with an expected benefit of approximately $10 million to adjusted operating earnings.
In fiscal 2022, the company had net sales of $3.8 billion.
Sally Beauty was trading at $12.66 per share as of Nov. 17, down 34.99% for the year. Its stock has a 52-week range of $11.28-$21.86.
Denise Paulonis, president and CEO, said “amidst a highly dynamic and challenging macro environment” in the 2022 fiscal year, Sally’s teams “executed well, navigating inflationary pressures and supply chain headwinds, while remaining focused on serving our customers.”
Meanwhile, prior reporting by OBJ notes that, over the past 12 months, more than 1,126 people in Central Florida had their jobs cut or were told they would be laid off soon.
Due to a roughly yearlong recession, unemployment for metro Orlando is expected to rise to 5.1% in 2023 and 6.1% in 2024, said Sean Snaith, director of the University of Central Florida’s Institute for Economic Forecasting, in his spring forecast.
Bizwomen staff writer Anne Stych and Orlando Business Journal staff writer Ryan Lynch contributed to this report.
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Rentable building area, total (SF)
| Rank | Prior Rank | Retail center |
|---|---|---|
1 | 1 | The Florida Mall |
2 | 2 | West Oaks Mall |
3 | 3 | Altamonte Mall |