The clean beauty and skin care trend continues to grow as consumers become increasingly determined to utilize all-natural, wholesome ingredients when it comes to their personal care. The coronavirus worries have put health in the forefront of most Americans. A preference for transparency with skin and hair care ingredients has also had an effect on consumers, and there are new all-natural skin care and beauty brick-and-mortar brands that are beginning to proliferate as a result. Look for both Buff City Soap and Madison Reed Color Bar to explode onto the retail scene in the next few years. Also keep your eye out for a couple of new brands, Freecoat Nails and Beautycounter, to expand their brick-and-mortar presence in light of this healthy ingredient trend.
The Buff City Soap franchise is aggressively expanding to new regions outside of its core presence in the South, anticipating opening approximately 150 to 200 new stores per year over the next five years. States expecting to see immediate growth include Louisiana, Iowa, Nebraska, Florida, Texas, Kentucky, Ohio, Indiana and Tennessee. The brand will also push into the new states of Virginia, the Carolinas and Michigan over the next three years. Buff City Soap ideally seeks 2,000 to 3,200 s.f. of outparcel retail space located in regional power centers with co-tenants such as Whole Foods Market, Walmart, Target, ULTA Beauty, Starbucks and Ross. The average household income within a three-mile radius should be at least $70K. The soap franchise has proven itself to be successful in both rural small town communities, as well as larger metropolitan areas.
In 2020, Buff City Soap moved its headquarters to Dallas from Memphis, Tenn., in anticipation of readying itself for national expansion, as Dallas proved to be more centrally located and closer to vast distribution and transportation centers. The brand also received private equity investment from Guideboat Capital and Crux Capital, both based in Dallas, and in 2020 the company hired a new chief marketing officer to help promote its franchise growth and rebranding efforts. Buff City Soap creates their products from scratch directly inside each of its stores, and customers can watch the process. Customers can also personalize their soaps by choosing their own scents and colors, or they can choose from the store’s signature scents. The handmade products are all plant-based and free of harsh chemicals.
The Madison Reed Color Bar, a digitally native hair color brand, also has lofty goals of opening approximately 130 to 140 new stores per year over the next four years. Expansion is expected throughout the country, and prospects for new growth include Southern California, the Carolinas and Arizona, with immediate expansion set for Chicago and Boston, where two seasonal pop-up shops have proven to be successful. Expecting to boost up its franchise development, Madison Reed seeks approximately 2,000 s.f. of space in lifestyle centers in suburban locations, as well and street-front units — preferably end caps — and mixed-use spaces in urban districts. Co-tenants preferred include boutique grocery stores, such as Trader Joe’s, as well as upscale home décor stores, such as Pottery Barn.
The Madison Reed Color Bar format, in which customers can either choose their own all-natural hair color products for at-home use, or enlist the services from professional colorists at the in-store salon, has flourished in spite of the pandemic, as the brand was able to gain customers when salons were forced to close during the COVID-19 shutdowns. Consumers realized they can perform a lot of the hair coloring tasks themselves, and these same customers are expected to visit the convenient physical store locations. In 2020, the company introduced men’s hair coloring products and touts that all of their ingredients are free of parabens, resorcinol, ammonia, PPD, phthalates and gluten.
The Freecoat Nails franchise brand was founded in 2020 by the same owners behind the Clean Juice chain, and the salon touts itself as the first non-toxic nail and beauty franchise. The brand anticipates opening at a rate of 30 to 40 new units per year over the next four years in all major cities throughout the country. Freecoat Nails seeks space between 1,400 and 1,800 s.f. In high-end centers in suburban areas in the Southeast. New units are expected to open in Concord and Cornelius, N.C., in addition to the units that already opened in Mount Pleasant, S.C., and Franklin, Tenn. Freecoat Nails’ non-toxic nail services avoid harmful ingredients found in most nail salons, including xylene, triphenyl and formaldehyde, and the company refuses to offer acrylics, dip gels and other adhesives with artificial products. In addition, the salons utilize hospital grade ventilation to circulate clean air.
Beautycounter expects to open approximately three to five new stores per year over the next two to three years. The brand has three locations in Manhattan, Denver and its latest store, a 684-s.f. unit that opened in Venice, Calif., in December. Beautycounter seeks units under 1,000 s.f. and expects to focus less on urban metro locations for future growth, preferring street-front retail districts in tertiary markets and upscale suburban resort-style communities, such as its pop-up unit in Nantucket, Mass. Potential new markets may include Laguna Beach, Calif., Palm Beach, Fla., and Austin. Beautycounter prides itself on avoiding up to 1,500 harmful ingredients typically found in other skin care and makeup products.
