Supercuts 2003 Annual Report Download - page 14

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Table of Contents
Relocations represent a transfer of location by the same salon concept.
Conversions represent the transfer of one concept to another concept.
In addition to adding new salon locations each year, the Company has an ongoing program of remodeling its existing salons, ranging from
redecoration to substantial reconstruction. This program is implemented as management determines that a particular location will benefit from
remodeling, or as required by lease renewals. A total of 179 salons were remodeled in fiscal 2003.
Site Selection
Strip Center Locations.
The Company estimates there are more than 40,000 strip shopping center locations in the United States and Canada.
Regis’ financial strength, successful salon operations and national recognition causes the Company to be an attractive tenant to strip center
landlords. In evaluating specific locations for its non-mall brands for both company-owned and franchise stores, the Company seeks
conveniently located, highly visible strip shopping centers which allow customers adequate parking and quick and easy store access. Various
other factors are considered in evaluating sites, including trade area demographics, availability and cost of space, location of competitors,
traffic count, signage and other leasehold factors in a given center or area. All franchisee sites must be approved by the Company.
11
1999 2000 2001 2002 2003
INTERNATIONAL (2)
Company
-
owned Salons:
Open at beginning of period
460
372
352
364
382
Salons constructed
12
17
35
18
10
Acquired
1
3
16
17
Salon openings
13
17
38
34
27
Conversions
(3
)
Salons closed or sold
(101
)
(37
)
(23
)
(16
)
(10
)
Open at end of period
372
352
364
382
399
Franchised Salons:
Open at beginning of period
1,684
Salons constructed
69
95
Acquired (3)
1,664
Salon openings
1,733
95
Salon closed or sold
(49
)
(152
)
Open at end of period
1,684
1,627
Grand total, system
-
wide
5,022
5,669
6,681
8,684
9,617
(1)
Represents primarily the conversion of franchise operations to company
-
owned.
(2)
Canadian and Puerto Rican salons are included in the Regis Salons, Strip Center, MasterCuts and Trade Secret divisions and not
included in the international salon totals.
(3)
Represents primarily the acquisition of franchise networks.