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Hair extensions

Sarah Stowe

Hairhouse Warehouse has set its sights on making a significant impact on Australian and overseas markets in 2010.

The rapidly growing hair and beauty retailer plans to double its network in the next five years, introduce and grow its brand in overseas markets, maximise its position in the cosmetic and skincare market and become the leaders in the body piercing industry.

According to Hairhouse Warehouse general manager Arthur Mitroulas, the team is well placed to execute these strategies in the short and long term.

Mitroulas says the business is growing at a minimum of 12 stores a year and is on target to reach 200 salons within the next five years.

“We are confident that we are well on our way to sustain our position of being the largest privately-owned hair and beauty retailer in Australia,” he says.

Hairhouse Warehouse has generated interest in the US and Asia and has a 12-month strategy in place to grow the brand in these markets. But as well as the planned overseas expansion, there are tremendous growth opportunities for the brand here in Australia.

“Whilst we have developed the Victorian market, there are organic growth opportunities in Western Australia and Queensland, as well as New South Wales,” Mitroulas explains.

“We have been presented with some quality A-grade sites across the country, mainly in shopping centre precincts, and there are existing franchisees and new franchisees ready to open the next Hairhouse Warehouse.”

The Hairhouse Warehouse brand is attracting interest from high quality investors, he adds.

“There are many existing franchisees who believe in the system and are always looking for opportunities to open multiple sites. We are fortunate that we have been able to grow a network of passionate and ambitious operators. We even have a number of franchisees who were formally key executives in the hair and beauty industry. Their knowledge is invaluable to the brand.”

While continuing network growth is important, it is essential that the consumer offering continues to develop, he reveals.

“Hairhouse Warehouse was born in 1992 as a retail salon chain, however, our predominant turnover has come from the retail side of the business.

“The real monster for our brand is salon services. We have national salon educators and technicians on the ground, ensuring consistency across the country and working as part of the operations team to grow this side of the business.

“We also run a hair salon academy to ensure that our teams are continually up-skilled in these areas. At present, we have more than 1000 hairdressers and 700 chairs in our seven-day a week businesses.

“We need to be providing our customers with creative, exclusive offers, ensuring that we are giving them the best products and the best value. We want to be the destination of choice when it comes to the hair and beauty market,” Mitroulas outlines.

Hairhouse Warehouse is already making an impact with its marketing strategies. Since launching its Loyalty Program (TLC) four months ago, it has attracted more than 50,000 members.

“We are always looking at new innovations, trends and opportunities to bring Hairhouse Warehouse to the customer,” says Mitroulas.

“The growing area of our business in recent times is body piercing. This has really taken off for us. Piercing is a natural add-on sale with professional hair care, especially for our lower aged demographic.

“Customers are looking for a body piercing environment where they can feel safe, cared for and experience professional piercing services (which is not the consistent offering in the piercing services arena).”

There are strict health and age regulations in relation to piercing and franchisees must meet all the necessary standards.

“All body piercers undergo extensive training, must ensure consent forms are signed by all those wanting piercings and have parental consent if under 16,” explains Mitroulas.

“At this stage, 92 per cent of all Hairhouse Warehouse salons offer piercings. We plan to ensure all salons are offering this service by the end of the year. Body piercing is our fastest growing service area. We really want to be the leaders in that market.

“It’s a very exciting time for Hairhouse Warehouse. There are a lot of initiatives being managed and I’m convinced that Australian and overseas’ consumers will be hearing a lot more of us throughout the next 12 months.”