Category: Consumer/Pro Retail

Great ideas on the Retail spectrum in our industry, common practices, quotes, and ideas.

Regis is closing SmartStyle salons in 600 Walmarts

~ Joseph Kellner

Regis Corporation, the hair care chain based in Edina, has announced it will be closing 600 “nonperforming” Regis SmartStyle salons, which are located inside Walmarts, on Jan 31. It will leave it with 2,000 other salons, also located within Walmarts, with the decision being taken “to improve shareholder value and position the company for long-term growth.”  It’s not been announced yet which Smart Styles will close, with Regis saying it will offer stylists and managers jobs at other locations, as it intends to grow the salons it’s keeping.

According to the Regis website, there are currently 39 SmartStyle salons at Walmart locations in Minnesota. While the closing locations have not yet been revealed, it’s probable that at least some of those affected will be in Minnesota. Most of the state’s Smart-Style salons are found in Walmart’s outside of the Twin Cities. Salons in the metro area are located at Maple Grove, Blaine, Brooklyn Center, Burnsville, Lakeville and Shakopee Walmarts. The Business Journal notes that Regis’ move to close the company-owned locations comes after a period of months in which its sold 1,000 of its other salons to a private equity firm and hundreds more SmartStyle locations to franchisees. It comes despite Congress recently passing a tax bill that will cut corporate tax rates from 35 percent to 21 percent, which is expected to significantly reduce major companies’ bottom lines. But CEO Hugh Sawyer said the decision is “consistent with our multi-year strategic plan” that will allow it to grow its remaining salons.

Regis CEO Hugh Sawyer said that the closings of the “nonperforming” locations was another step in the company’s efforts to restructure its business. The company has been working to re franchise many of its company-owned stores and improve performance at the locations it’s holding onto. Regis splits its business between value-based brands, like Smart Style and Supercuts, and premium brands like Regis Salon. Sawyer took over as CEO last April, replacing Dan Hanrahan. Previously, Sawyer had worked at Chicago-based Huron Consulting Group, which Regis had hired to help it evaluate strategic moves for some of its salons. Since then, Regis has sold 1,000 salons to Los Angeles-based private equity firm Regent, sold hundreds of other SmartStyle locations to franchisees and closed other company-owned sites.

“Regis is committed to maintaining our leadership position in the salon industry,” Sawyer said in a statement. “As a result, we are making significant strategic and operational changes to our business to increase customer traffic, invest in new technologies, decrease non-strategic costs, expand our franchise capabilities and create a new Eco-system for customer interaction.” Regis said it doesn’t plan any further moves in its SmartStyle salon portfolio for the near future. It’s not clear how many employees will be affected; Regis said that it plans to offer many stylists and managers jobs at other locations. Regis ranked No. 25 on the Business Journal’s list of largest public companies in Minnesota last year with revenue of $1.75 billion. That revenue is expected to decline this year; prior to the latest round of closings, analysts had forecast 2018 revenue of about $1.25 billion.

 

Think Real Good Before Using These Cosmetic Products

~ Joseph Kellner

Keratin Hair Products

What are they? Keratin is the protein from which hair is made. Many shampoos and conditioners claim to include keratin and promote the protein’s restorative qualities. The products’ labels say they can repair damage caused by over-processing.  Why should you think twice? Most hair products that advertise the benefits of keratin don’t actually contain it or even specifically target the protein. To make matters worse, there is no evidence that keratin additives benefit hair health or growth.  As a result, ClassAction.com has filed a false advertising lawsuit against Matrix and L’Oreal, claiming their products do not contain keratin and therefore are unable to provide the benefits they advertise. If you have purchased keratin hair products made by these companies, contact us today to find out if you are owed money.

Hair-Smoothing Products with Formaldehyde

What are they? Hair-smoothing products are meant to control frizz and curls for an extended period of time; they often contain formaldehyde. The application process is usually done in a professional salon and requires heat from a flat-iron or blow dryer.  Why should you think twice?  When formaldehyde and related ingredients such as methylene glycol are heated, formaldehyde gas is released into the air, which can be hazardous to your health. The FDA and The Occupational Safety and Health Administration (OSHA) have issued warnings about Brazilian Blowout Acai Professional Smoothing Solution and Brasil Cacau Cadiveu, citing safety and labeling violations.  Exposure to formaldehyde can cause health problems such as headaches, dizziness, nausea, chest pain, respiratory-tract problems, eye irritation, rash, and more. The labeling violation letters allege that the product labels do not warn people of these potential harmful effects.  The FDA recommends avoiding products that contain formaldehyde, formalin, or methylene glycol, and to report any adverse reactions.

 

“Natural” Products that Contain Synthetic Ingredients

What are they? Due to increasing consumer demand, many brands are starting to create more “natural” products and trying to stay away from using synthetic and artificial ingredients.  Why should you think twice?  In recent years, certain brands have come under fire for labeling products as “natural” when in fact they contain synthetic and chemical ingredients. In 2016, Unilever settled a class action suit levied against its TRESemmé Naturals product line for $3.25 million and discontinued the line.  Another class action suit was filed in February 2017 against Procter & Gamble’s Herbal Essences Wild Naturals line for misleading labels and false advertising.  If you purchased a Babyganics, keratin, or other hair product and think you fell victim to false advertising, contact us for a free legal consultation. You could be eligible for a class action lawsuit.

 

WEN® by Chaz Dean

What is it? Founded by celebrity hair stylist Chaz Dean, WEN® is a line of sulfate-free hair care products. The WEN Cleansing Conditioner promises to clean, nourish, moisturize, detangle, and strengthen hair, all in one product and without the use of harsh sulfates. WEN’s website says it has sold over 40 million products since 2008.  Why should you think twice? In 2015, more than 200 women joined a class action lawsuit claiming that use of the WEN Cleansing Conditioner led to extreme hair loss, hair breakage, scalp irritation, and rash.  The lawsuit also alleged that WEN misled customers with deceptive marketing, and that the company blocked or removed negative comments and reviews from its website and social media pages.  WEN settled that lawsuit for more than $26 million. The FDA is currently investigating the cleansing conditioner and warns consumers to stop using the product if they experience any adverse reactions.

 

Babyganics

What is it? Babyganics is a Westbury, New York-based company that claims to sell baby-safe, organic household and childcare products (shampoos, lotions, wipes, detergents, etc.). It has grown rapidly over the past 15 years, generating $30 million in revenue in 2013 and securing a sale by SC Johnson in 2016.  Why should you think twice? Many parents allege that Babyganics products are not as organic or kid-friendly as they appear.  As a result, multiples lawsuits have been filed against Babyganics in recent years.  A class action suit filed by ClassAction.com alleges that Babyganics misled consumers through labeling that claimed certain bath products were “tear-free,” gentle, non-allergenic, and safe for infants—when in fact they contain substances that are eye irritants. Another class action lawsuit filed in September 2016 alleges that products labeled as “organic” or “mineral-free” actually contain ingredients that are neither.  One mother also claimed that Babyganics baby wipes caused her five-week-old baby to break out with a bumpy rash on his face.  PrMost serious of all, Theresa Jones alleges that Babyganics’ tear-free shampoo burned her son Hunter’s eyes, potentially causing serious and permanent damage.

Statement on FDA Investigation of WEN by Chaz Dean Cleansing Conditioners 2017

~ Joseph Kellner

FDA previously announced that it is conducting an investigation of adverse event reports for WEN by Chaz Dean Cleansing Conditioner products, including reports of hair loss, hair breakage, balding, itching and rash. FDA has received and continues to receive reports of adverse events, as the investigation is still ongoing. In the course of its investigations, the FDA is looking at all sources of information, in order to better understand the consumer reports of adverse events. There are many potential causes of hair loss, including, for example, certain illnesses, medications, hormonal changes, rapid weight loss or gain, anemia, and high-stress life events, and these factors are being taken into account as the FDA continues to investigate these reports. If you experience hair loss, you should contact your healthcare provider. As with any cosmetic product, if you experience an adverse event that you think may be related to use of WEN by Chaz Dean Cleansing Conditioner, you should also cease using the product and report the event to the FDA.

The FDA is investigating reports of hair loss, hair breakage, balding, itching, and rash reported to be associated with the use of WEN by Chaz Dean Cleansing Conditioner products. While the FDA continues its investigation, consumers should be aware of reactions reported in association with the use of WEN by Chaz Dean Cleansing Conditioner products. Consumers who experience a reaction after using WEN by Chaz Dean Cleansing Conditioner products should stop using the product and consult with their dermatologist or other health care provider. The agency also urges consumers to report to FDA any reactions they may have experienced when using these products.

As of November 15, 2016, the FDA had received 1,386 adverse event reports directly from consumers about WEN by Chaz Dean Cleansing Conditioner products, the largest number of reports ever associated with any cosmetic hair cleansing product, including cleansing conditioners. We also are investigating more than 21,000 complaints reported directly to Chaz Dean, Inc. and Guthy Renker, LLC that we learned of during inspections of manufacturing and distribution facilities.

The FDA has not yet determined a possible cause for the adverse events that have been reported, and today has called on the company to “provide any data that might help us to better understand the reports of hair loss associated with the use of WEN by Chaz Dean Cleansing Conditioner products.” The FDA also has reached out to physicians and other health care providers asking them to notify their patients of hair loss and other complaints associated with the use of these products and to report adverse events to the agency.

The FDA will provide additional updates as new information becomes available.

 

ClassAction.com filed a lawsuit against L’Oreal and Matrix

~ Joseph Kellner

Always in trouble they are, in a industry were you have manufacturing deception and price gouging. It come to me this is the same old same old crap in my industry.  I was once told when I entered in the beauty its a ‘whore’s business”, or the beauty shows are “flea markets”. That was the best advice and description I could have ever have gotten. And as time has past in my 30 years I see nothing has or will change in my industry. Shop to you drop are the ‘Beauty Shows”. It’s all soap my friends with maybe a little oils, or fragrance. That”s all it is.  So as usual the manufacturers will say anything advertising wise to make a sell to you as the consumer and as to me the professional. I never fall for it anymore.  It has been a very long time since I have been to a “hair show – flea market” that I have lost my respect for the manufacturers. Also they are filled with “snake -oil” salesmen and saleswomen to be correct.  Buy this and buy that will be the first impression from them, I once did a documentary called ‘The real Hair Truth” and we had a few snake oil sales men in it. These are people who will go from company to company selling there “speal” to them for a paycheck. And offering there devotion to them for a few nickels. Most of them do it because of a over sized ego. And most of them there work looks no better than a beauty school drop out. But the manufacturers will place anything on a bottle or label.  Its makes no difference to them if they get caught they will pay penny’s on the dollars in civil court. big Deal, no worry’s maybe they will say a batch of products did not have the “SECRET INGREDIENTS”. MERELY A TECHNICAL GLITCH WITH THE FACTORY MACHINERY.

In the latest case of a company allegedly promising ingredients and benefits its products do not offer or contain, last week ClassAction.com filed a false advertising lawsuit against L’Oreal USA and Matrix Essentials over an array of hair products that appear not to contain the protein keratin.

The products cited in the complaint are the following:

  • Matrix Biolage Keratindose Pro-Keratin + Silk Shampoo
  • Pro-Keratin + Silk Conditioner
  • Pro-Keratin Renewal Spray

The 39-page complaint—filed in the Southern District of New York on January 26, 2017—states:

Through its uniform, nationwide advertising campaign… Defendants have led consumers to believe that their Keratindose Products actually contain keratin and will confer the claimed benefits of keratin to the consumer.

In reality, the Keratindose Products do not contain any keratin at all and are incapable of providing the claimed benefits of keratin to the consumer.

The complaint states that the products’ labels are “false, deceptive and misleading, in violation of the Federal Food Drug & Cosmetics Act and its parallel state statutes, and almost every state warranty, consumer protection, and product labeling law throughout the United States.”

The plaintiffs seek relief for damages, for the defendants to stop engaging in the deceptive advertising alleged in the complaint, and any other relief the Court deems just and proper.

Click on the link to download the file to read. Loreal_Matrix_Keratin_Lawsuit(1)

I am not surprised at all with the lawsuit, but what is surprising to me in my industry we have this so called organization called the “PBA” PROFESSIONAL BEAUTY ASSOCIATION.  THEY DO NOT SAY A PEEP ABOUT ANY OF THESE LAWSUITS OR DO ANY INVESTIGATING AT ALL. BECAUSE THEY ARE IN BED WITH THE MANUFACTURERS.  They tought themselves as the watch dawg’s for the beauty business. Basically if you join them they charge you $300.00 for membership and give you a 10% discount on a hair show.  I call them the Professional bullshit association. They do nothing for the professional but they will sure do a lot for the manufacturers. And anything to do with Licensureship, anything that will hurt the manufacturers schools or state boards they will jump on in a minute. Because if they reported the truth about the industry they would lose manufacturers dollars. They use that to sustain themselves. With out that they would be history. Good day everyone.

Why You Shouldn’t Be An Entrepreneur

~ Joseph Kellner

 

 

When a hopeful entrepreneur asks me advice on beginning a startup, my advice is always the same: Don’t do it. It’s awful.

That is not the full truth. The reality is that it’s difficult to start and run a business. It’s a tremendous investment that takes time, effort and capital. Your focus is always on the business. Fantastic highs give way to horrible lows. It causes drastic mood swings (that might seem irrational to others) and extreme financial stress that few really understand. If someone one is going to make it, they won’t listen to my suggestion and will move full-steam ahead.

If this is the path you go down, there are a few things you should expect.

 

Uneven Work/Life Balance

I’ve always struggled with the work/life balance ratios that people often refer to. I genuinely love the challenges that come with creating a business, so I guess you could say I’ve never worked a day in my life. How is that for balance? But in all seriousness, I am almost constantly thinking about work, whether I’m running, reading, with friends or out with my girlfriend. In the back of my head, I’m going over checklists, thinking up new strategies or applications of new technologies. This can make relationships difficult, as you’re always ducking out to take a phone call, canceling dates or are unable to totally focus on on someone. On the flip side, I’m free to make my own schedule, stepping out to take care of personal things or work remotely if I need to.

An Always Moving Finish Line

There are going to be times where it feels like everyone is trying to prevent you from getting to where you want to be. It is easy to get discouraged and swayed. Entrepreneurs must go into what I call “cut-throat mode.” You need to navigate politics, get buy-in and ultimately arrive at your goal. Chances are, until that goal is achieved, you won’t be happy. And even when that happens, a new goal will inevitably appear to embark upon. To compound matters, there may even be multiple goals at the same time. This can ultimately make it challenging to have fun or do social activities with non-entrepreneurs because there is always something more important, in your mind, to do. After all, time is money, and both can be the difference between success and failure.

To tackle this, try breaking your goals into manageable pieces so they are more actionable. Understanding everything that needs to happen and having a plan for how you will accomplish each step eases the burden.

Always Being ‘On’

As an entrepreneur, you always need to be thinking about how your business is perceived by the mainstream. Because of this, you always need to be “on.” You don’t have the luxury of disclosing issues or problems. In order to protect and propel your organization, your guard always needs to be up — prepared to spin negatives or take advantage of opportunities when they appear. For example, responding to questions like “How is the business going?” is incredibly complex. I always stay positive and keep in mind who is asking. You never know who you are going to meet or what they might know. Make sure you are representing yourself and your company well.

Inevitable Stressors

Most humans fail over and over, and this is generally a good thing as long as you learn from it. However, when running a business, there are a lot of dependencies, and ensuring the bottlenecks you are creating are solved can cause a lot of pressure and stress. For example, missing payroll is a very realistic possibility for most startups. Whatever the situation may be, you are the one who is generally responsible for fixing the problem, and chances are you will not always have the answer.

Is It Worth It?

Being an entrepreneur is one of the best and worst things I’ve decided to do. I’ve learned more than I could have imaged and have been faced with challenging situations I never thought I would have to go through, but I’ve also had a ton of fun. If I could choose a different career path, I wouldn’t. It’s not for everyone, but if you are the type of person who, after reading this, still wants to pursue creating your dream company, good for you. Just remember it will most likely be the hardest thing you’ve ever done, but with perseverance, you might just pull it off.