Supercuts 2008 Annual Report Download - page 13

In the preceding table, relocations represent a transfer of location by the same salon concept and conversions represent the transfer of one
concept to another concept.
Regis Salons. Regis Salons are primarily mall based, full service salons providing complete hair care and beauty services aimed at
moderate to upscale, fashion conscious consumers. In recent years, the Company has expanded its Regis Salons into strip centers. As of June 30,
2008, 157 Regis Salons were located in strip centers. The customer mix at Regis Salons is approximately 78 percent women and both
appointments and walk-
in customers are common. These salons offer a full range of custom styling, cutting, hair coloring and waving services as
well as professional hair care products. Service revenues represent approximately 83 percent of the concept's total revenues. The average ticket is
approximately $39. Regis Salons compete in their existing markets primarily by emphasizing the high quality of the services provided. Included
within the Regis Salons concept are various other trade names, including Carlton Hair, Sassoon, Mia & Maxx Hair Studios, Hair by Stewarts and
Heidi's.
The average initial capital investment required for a new Regis Salon is approximately $212,000, excluding average opening inventory
costs of approximately $17,500. Average annual salon revenues in a Regis Salon which has been open five years or more are approximately
$463,000. During fiscal year 2009, the Company plans to open approximately 20 new Regis Salons.
MasterCuts. MasterCuts is a full service, mall based salon group which focuses on the walk-in consumer (no appointment necessary)
that demands moderately priced hair care services. MasterCuts salons emphasize quality hair care services, affordable prices and time saving
services for the entire family. These salons offer a full range of custom styling, cutting, hair coloring and waving services as well as professional
hair care products. The customer mix at MasterCuts is split relatively evenly between men and women. Service revenues compose approximately
81 percent of the concept's total revenues. The average ticket is approximately $18.
The average initial capital investment required for a new MasterCuts salon is approximately $192,000, excluding average opening inventory
costs of approximately $13,500. Average annual salon revenues in a MasterCuts salon which has been open five years or more are approximately
$294,000. During fiscal year 2009, the Company plans to open approximately 20 new MasterCuts salons.
Trade Secret. Trade Secret salons are designed to emphasize the sale of hair care and beauty products in a retail setting while providing
high quality hair care services. Trade Secret salons offer one of the most comprehensive assortments of hair and beauty products in the industry.
Trade Secret's retail selection consists of highly recognized brands, and the products held for sale vary with changing trends. These salons offer a
full range of custom styling, cutting, hair coloring and waving services as well as professional hair care products. Trade Secret's primary
customer base includes the female head of the household shopping for her entire family, as well as singles shopping for their own beauty
products and accessories. Trade Secret salons are primarily mall based, however, in recent years, the Company has expanded into strip centers.
As of June 30, 2008, 121 company-owned Trade Secret salons were located in strip centers. Product revenues represent approximately
87 percent of the concept's total revenues. The average ticket is approximately $26.
The average initial capital investment required for a new Trade Secret salon is approximately $213,000, excluding average opening
inventory costs of approximately $45,000. Average annual salon revenues in a Trade Secret salon which has been open five years or more are
approximately $395,000.
During fiscal year 2008 the Company acquired the capital stock of CCI that owns and operates PureBeauty and BeautyFirst salons. During
fiscal year 2008, the Company transformed nine Trade Secret locations to PureBeauty locations. Future transformations will depend on the
success of initial transformations. In addition to hair care products and services, PureBeauty and BeautyFirst salons will offer cosmetics, skin
care and bath and body. The staff will include cosmetologists and aestheticians.
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