Supercuts 2003 Annual Report Download - page 7

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Table of Contents
Business Strategy
The Company’s goal is to provide high quality, affordable hair care services and products to a wide range of customers through attractive
salons located in high traffic and convenient locations. The key elements of the Company’s strategy to achieve these goals are the following:
Consistent, Quality Service. The Company is committed to meeting its customer’s hair care needs by providing competitively priced services
and products in high traffic retail locations with professional and knowledgeable stylists. The Company’s operations and marketing emphasize
high quality services to create customer loyalty, to encourage referrals and to distinguish the Company’
s salons from its competitors. The major
services supplied by the Company’s salons are haircutting and styling, hair coloring and waving, shampooing, conditioning and waxing. To
promote quality and consistency of services provided throughout the Company’s salons, the Company employs full and part-time artistic
directors whose duties are to train salon stylists in current styling trends.
Growth Opportunities. The Company has the ability to expand its salon base through location, geography, concept and franchising. This
provides the Company significant flexibility to meet consumer demand within the market.
The Company’s real estate strategy is to identify potential salon locations with good visibility, adequate traffic, appropriate trade
demographics, easy access and adequate parking. The Company primarily focuses on real estate opportunities within regional malls, strip
centers and Wal-Mart Supercenters.
Regis’ North American salon concepts address the various customer preferences within the salon market. The Company’s regional mall and
strip center salon concepts provide the Company with the ability to have multiple locations within a single mall or strip center. With consistent
square footage for all the Company’s salons, approximately 1,200 square feet, the Company has the ability to determine which salon concept is
best suited to a location or change the concept of existing salons to meet customer preference or demographic changes in the salon’s market.
The Company’s international salons focus on similar business characteristics as its North American salons and are located in malls, leading
department stores, mass merchants and high-street locations, and are well poised for global expansion.
The Company is expanding its salon presence through franchising. With over 40 percent of the system-
wide salons being franchised salons, the
Company can expand the system’s salon presence and increase market share through the development of company-owned and franchised
salons.
Expansion.
The Company’s expansion strategy focuses on organic and acquisition growth. Since 1990, the Company has added over 8,700
salons through the combination of new salon construction, franchising and acquisitions. While same-store sales growth plays an important part
in the Company’s organic growth strategy, it is not critical to achieving the Company’s long-term growth objectives. With a two percent world-
wide market share, the Company’s long-term outlook for expansion remains strong.
4