Sales: $475 million
sale: $475 million (estimated).
Key personnel: John Paul DeJoria, Co-Founder and Chairman of the Board. Angus Mitchell, co-owner. Michaeline DeJoria Heydari, Vice President. Co-founder Paul Mitchell.
Main products: Professional hair care products. Brands include Paul Mitchell, Tea Tree, Manula Oil, Nuro, Neon, Awapuhi Wild His Ginger, Mitch.
new product: InvisibleWear Shampoos, Conditioners, Styling Whips, MVRCK Men’s Grooming and Styling Products, Vegan Hair Color and Hair Care Options, Neuro Liquid Repair and Restyling Sets, Treat Yourself Obsessed Box.
comment: The professional hair care market continues to face major challenges with changes in hairstyles and distribution. According to a study by Professional Consultants & Resources (PCR) of Plano, Texas, all types of salon services revenue grew by only 1.7% in 2018. Industry barriers to growth persist, including changes in distribution, M&A, brand consolidation, restaging and intense competition. top manufacturer.
“In 2018, GDP growth in the U.S. economy was 3%. It’s from our partner brands,” explains PCR’s Cyrus Bulsara. “These two major distributors account for more than 55% of the total salon industry. Their flat to low growth is a harbinger of growth, trends and future growth for the salon industry as a whole.” ”
In addition, salon visit frequency only increased for suite rentals, family economy chains Great Clips and Sport Clips, and some independent art salons. Rental properties do not retail well, impacting growth and continuing to see a boom in repurposing.
“Mall-based premium salon chains such as Regis, Toni & Guy, JCPenney and Ratner continue to decline in both customer and revenue, while economy chains such as Great Clips and Sport Clips are growing.” added Bulsara. “There are both good and bad areas in the United States. Growth will come from salons in good areas. We will see declines in services and retail in bad areas. These are the various factors that are affecting and inhibiting the growth of the salon industry.”
With issues like this, it’s no surprise that DeJoria turns to Patron and real estate.
DeJoria bought McDonald’s 80-acre campus in Oak Brook, Illinois last month after the fast-food giant moved out. The purchase price was not disclosed. The site includes the former McDonald’s headquarters building, the Hamburger University training site, and the Hyatt Lodge.
It’s unclear what DeJoria plans to do at the location, but the 218-room Hyatt hotel will reportedly remain open.
“This campus has a rich history and importance to the community, and there is such beauty throughout the site,” DeJoria said in a statement. “I am honored to continue that legacy and look forward to welcoming the next generation of special guests and businesses to the property. There is no doubt that the future is bright.”
City officials agree. David Carlin, president of the Greater Oak Brook Chamber of Commerce, said DeJoria is a great addition to the village.
“When founders of iconic brands such as Paul Mitchell and Patron Spirits Company invest in your town, it means your future is bright.