Sally Beauty Supply has closed 350 stores. I was able to see why the company was struggling when I visited one of their locations.

Sally Beauty Supply announced that 350 of its stores will close and two distribution centers in Oregon, and Pennsylvania, as part of its new optimization strategy.

The company announced that its new plan, which includes a piloting of store closings, will save the company approximately $50 million and generate about $10 million in adjusted operating earnings for 2023.

Source: Sally Beauty Holdings

Sally Beauty’s Q4 earnings showed a net sales of $962.5 million, which is 2.8% less than 2021. The company attributed this decrease to being "unfavorably impacted by inflationary pressures that continued to impact consumer behavior and supply chain challenges."

Source: Sally Beauty Holdings

Most of the stores that will be closing are located in the US. Many of them will close permanently in December.

I visited a Sally Beauty Supply store in the Hell's Kitchen area of Manhattan to see why the company is curtaining so many of its brick-and-mortar shops.

When I entered the store, I saw a clearance section to my left. Majority of the products were hair- or makeup-related.

The salon was home to more than half of its products and tools for hair care and styling.
Sally Beauty was a good place to start if you are a hairdresser or salon owner looking for specialty brands at low prices.

There were many options for hair clips, curlers and caps. A smaller selection of hair extensions and/or wigs was also available.

All hair styling spray bottles were priced below $4.

Hair styling tools such as hair brushes and combs were affordable, with most of them under $15.

A section in the middle of the shop was filled with hair straighteners, curlers, and hair dryers.

You can also purchase additional styling appliances such as clippers.

Signage stating that all electrical appliances are final sales made me wonder whether this was one of the planned closures.

Another sign stated that customers would receive $20 off selected styling tools.

There were so many shampoo and conditioner options in the store.

On shelves and displays, signs advertising discounts on haircare products were placed. Seeing all the signs made me wonder if the store always had big deals going on or if it was a sign of the company's financial struggles.

Shoppers could get four ION products for $20 total, which was a great deal seeing as most of the brand's products started around $10.

Sally Beauty also carried a large selection of hair dye brands, and boxes of various shades were on display in their store.

There was a large selection of hair products and nail polishes.

A large selection of nail-care tools, such as files, clippers and nail-strengthening products, was also available nearby.

The makeup accessories area was further down the aisle. Although the selection was small, there were still plenty of essentials at drugstore pricing, including packs of $4.19 eyebrow pencils, $4.39 beauty blenders and individual makeup brushes priced between $7.99 to $15.79.

Ardell products on sale: Get 50% off when you buy 2 packs of fake eyelashes and 2 cosmetic items.

Surprisingly, the makeup section was limited to a small area. It was half taken up with jewelry for eyebrow piercings and jewelry for the nose.

Sally Beauty offers a small selection of brands and products so customers who are looking for simple mascara or blush would be better off shopping at Walgreens or CVS.

I was able to see firsthand why some locations were closing. Sally Beauty’s clientele is likely to be too niche for them to keep its 3,700 stores open.

Source: Sally Beauty Holdings

Because most of the store is dedicated to hair care, Sally Beauty's offerings can’t compete with other beauty store retailers like Sephora or Ulta, which sell a larger selection of makeup, skincare, and fragrances. It also doesn't match up to many drug stores that have similar prices and more variety overall.