Industry Analysis & Industry Trends
Industry Report - Starting a New Business Chapter
The industry has moderate barriers to entry; capital requirements necessary to open a store location are fairly low and primarily consist of leasing a commercial property. The capital requirements to open a US-based Sally Beauty Supply store, for example, average about $70,000, excluding inventory. Beauty supply stores tend to be located at strip malls and other retail centers that get a lot of foot traffic. Leases at these locations vary significantly; however, leases of commercial properties have come down considerably as a result of the recession-induced slump in construction activity. More so, increased vacancies in shopping centers as a result of the recession improve new entrants' chances of finding good store locations... purchase to read more