Sally Beauty Discovers Marketing and Real Estate Opportunities with Buxton

>> PAUL MYRICK: Hi, my name is Paul Myrick, Vice President of Real Estate with Sally Beauty. Sally usually uses the approach to throw it all against the wall to see what sticks. Now, with better analytics, better tools, we can really identify what the best idea for the best opportunities are, which that previously didn’t exist. From a marketing perspective, a growing successful plan we had a few years ago was identifying our worst performing stores. So, again, during the Buxton model, we made up a site score for all existing stores. We compared that to what we’re missing at the most. We were able to focus on the bottom 50 stores and really do an enhanced marketing program around those stores through customer prospecting and understanding who our customer is, and it really did live to sell us at those stores. In the last several years, we’ve really been to small markets. We thought at one time we were pretty much done with small markets and Buxton really helped up define what a small market is and what kind of revenue potential is with the small markets. Even though most small markets don’t do the average revenue of a Sally store, we know what that revenue is and we can manage towards it. Keep the rent, payroll, and occupancy costs. So, we have a very successful small market program. With some of the analytics Buxton was able to bring to the table, they would help us rationalize and define a lot of urban markets that we are now going to start targeting, and the biggest thing with the defining a market is helping us identify revenue potential so that we can make our story successful.