As of Mar 31, 2018, there were 8,228 locations system-wide, comprised of 4,128 company-operated locations, 4,012 franchised locations and 88 equity ownership interest locations. By concept, there were 2,224 SmartStyle/Cost Cutters, 2,678 Supercuts, 834 MasterCuts or Regis salons, 2,230 other value salons, and 262 salons in Europe.
During fiscal 2017, the company reduced corporate-owned store counts by 519, while franchisees added 150 locations. Systemwide, the company closed 780 net stores in the first nine months of fiscal 2018, including 597 non-performing company owned SmartStyle salons. In Oct 2017, the company sold substantially all of its mall-based salon business in North America, representing 858 salons, and substantially all of its international segment, representing approximately 250 salons in the UK, to The Beautiful Group, who will operate these locations as franchise locations.
All salon locations are leased. Mall locations typically have initial lease terms of at least 10 years. Salons operating in strip centers and Walmart Supercenters have leases with original terms of at least 5 years, generally with the ability to renew for one or more additional 5 year periods. The company leases the premises in which 84% of franchisees operate, with initial terms of 5 years.
Most North America locations are located in strip centers and Walmart Supercenters, with premium salon locations primarily in malls. Salons in the UK are located in malls, leading department stores, mass merchants and high-street locations. Salons range in size from 500 to 5,000 square feet, with the typical salon approximately 1,200 square feet.
|Total gross square feet (M)||9,962||10,782||11,214||11,315||11,452||11,535|
|Total gross square feet growth||-8.8%||-4.1%||-1.0%||-1.2%||-0.7%||-2.4%|
|Avg store gross sq ft||1,200||1,200||1,200||1,200||1,200||1,200|
|Avg store gross sq ft growth||1.2%||-0.2%||0.0%||-0.0%||-0.1%||-0.1%|
Notes:Includes company-operated and franchised locations, but excludes equity ownership locations