Cost Transformation for a Beauty Products Retailer

Sally Beauty Holdings wanted to free up between $25 million and $50 million to help fund growth initiatives.

Situation

To accomplish Sally Beauty’s goals, executives sought to reduce costs and boost productivity. Specifically, they needed to improve distribution, streamline general and administrative (G&A), and reduce costs in sourcing and procurement for both private-label and branded products.

Our Role

A team of FTI Consulting Retail & Consumer Products professionals worked with SBH to identify and implement cost and productivity enhancements across the organization. The work started with an enterprise-wide assessment to identify short- and long-term initiatives that could concurrently reduce costs and improve effectiveness. The subsequent work included a complete “clean sheet” redesign of the organization’s G&A functions, sourcing of private label and third-party brands and retail field management, as well as improvements in inventory and in-store labor productivity.

Impact

FTI Consulting identified opportunities in the first several weeks that met the client’s initial savings goal. FTI Consulting continued to identify opportunities that significantly surpassed the SBH’s initial goal.

Client Testimonial

“We selected FTI Consulting for their style, approach and expertise, and we were not disappointed. They were deliberate, fast, collaborative and unrelenting in challenging our mindset and our ways. They were a catalyst in our transformation journey, and we could not have selected a more thoughtful and skillful partner to help us.”

— Chris Brickman, Chief Executive Officer