Supercuts 2005 Annual Report Download - page 9

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The retail portion of the Company’s business complements its salon services business. The Company’s stylists and beauty consultants are
compensated and regularly trained to sell hair care and beauty products to their customers. Additionally, customers are enticed to purchase
products after a stylist demonstrates its effect by using it in the styling of the customer’s hair.
Salon Concepts:
The Company’s salon concepts focus on providing high quality hair care services and professional products, primarily to the middle
consumer market. Most of the Company’s salon concepts are located in regional malls, strip centers, life style centers, Wal-Mart Supercenters,
high-street locations and department stores.
The Company’s North American salon operations consist of 8,861 salons (2,310 franchise), operating under five concepts, each offering
attractive and affordable hair care products and services in the United States, Canada and Puerto Rico. The Company’s International salon
operations consist of 2,018 hair care salons, including 1,592 franchise salons, located throughout Europe, primarily in the United Kingdom,
France, Italy and Spain. Under each concept below, the number of new salons expected to be opened within the upcoming fiscal year is
discussed. In addition to these openings, the Company typically acquires several hundred salons each year. The number of acquired salons, and
the concept under which the acquisitions will fall, vary based on the acquisition opportunities which develop throughout the year.
Salon Development
The table on the following pages set forth the number of system-wide salons (company-owned and franchise) opened at the
beginning and end of each of the last five years, as well as the number of salons opened, closed, relocated, converted and acquired during
each of these periods.
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