Thriving Stylist Podcast

Episode #406 – Salon Retail Is Collapsing

Host: Britt Seva
Date: October 6, 2025

Episode Overview

In this thought-provoking episode, Britt Seva tackles the issue of collapsing retail sales in the salon and beauty industry. Drawing upon her years of experience and industry insights, she dissects why traditional salon retail models are failing, dispels enduring misconceptions about why retail sales are slumping, and offers a candid invitation for stylists and salon owners to reimagine their retail approach. The tone is direct, compassionate, and occasionally blunt—a signature of Britt’s coaching style.

Key Discussion Points & Insights

1. The Reality: Salon Retail Is Collapsing

• Main Point: Britt opens with the bold assertion that the days of lucrative salon retail are largely behind us (02:10).
• She references her earlier “2026 Predictions” episode, noting that retail’s decline was a core forecast (03:00).
• “There should be zero confusion... we’re just pretending like we’re so confused as to why retail’s gotten harder in the industry. There should be zero confusion.” — Britt Seva (06:20)

2. Britt’s Personal Stand on Retail

• Britt clarifies she is not anti-retail, nor does she suggest stylists abandon selling products. She has always advocated for healthy retail programs and rational compensation structures (05:10).
• "I don’t think that stylist compensation should be attached to retail sales. I think service revenue is service revenue... The financial data doesn’t support the system." (06:05)
• She emphasizes that while she personally buys from salons and trusts her service providers, the fundamentals of retail have changed.

3. Why Is Salon Retail Failing?

• The industry has seen a major shift: professional brands are no longer exclusive (16:00).
• "If we want to, like, have somebody to blame, that’s the blame... Professional brands are no longer exclusive." (17:50)
• Clients can buy once-exclusive professional brands at big-box stores, online directly from brands, Amazon, Sephora, Ulta, and even Target.
• Salon retail is now competing with the brands themselves. The relationship shifted from business-to-business (B2B) to include direct-to-consumer (B2C) sales (20:30).
• Distributors and brands now urge stylists to get clients to "shop small," while simultaneously making more profit by selling direct, creating structural hypocrisy.

4. Dispelling Industry Myths About Declining Retail

• The “Diversion” Excuse:
  • The standard industry answer for shrinking salon retail is “diversion” (product appearing in unauthorized locations).
  • Britt is adamant this is old news: "That is not what’s happening anymore... I don’t ever want to hear you say diversion to a client again because you’re starting to sound like grandma and grandpa." (14:30)
• The “Shop Small” Narrative:
  • Britt highlights the decline of physical retail everywhere, not just in salons.
  • "Trying to convince clients and consumers to do something they are no longer wired to do is an uphill battle. And we’re fighting the wrong war." (15:50)

5. Structural Problems Making Retail Unprofitable

• Stocking and Inventory Issues:
  • Most salons have significant product sitting unsold for months, leading to wastage, expired products, and lost investment (24:00).
  • Retail programs often do not generate true profit after factoring in leftover inventory, reinvestments, and staff commissions (26:40).
  • Example: A salon investing $500 in retail—after five reorder cycles and selling $3,120—might only yield $364 in profit (29:55).
    • “You are making that over months and months and months and months of retail sales. Most of you are making more than that in services in one day.” (31:00)

6. Rethink Retail as a Business Model

• Call to Action: Britt urges owners and stylists to:
  • Carefully audit their retail numbers: inventory, cost, revenue, commission, and time investment (33:00).
  • Question old compensation structures tied to retail sales—especially if retail isn’t profitable (35:10).
  • “You’re holding [stylists] liable for selling something that, to you, is not even generating real revenue... in a model that’s arguably failing us.” (36:00)
• She suggests exploring hybrid or commission models like Salon Interactive, where clients can buy online and stylists receive a cut—though she stresses this isn't a sponsored recommendation (12:40).

7. The Value of Retail Now

• Britt recognizes retail can deepen stylist-client relationships and still has a role—but it needs to be updated for the modern marketplace (38:30).
• “I’m not saying retail is the worst. What I’m saying is, I don’t think we have a firm perspective on what it means, how it works in our industry anymore.” (39:50)

Notable Quotes & Memorable Moments

• On Accepting Change:
  • “We do not get to go back in time and have the things that worked 20 years ago work now. They don’t.” (13:55)
• On Industry Blame:
  • "If they really wanted the consumers to shop small, they would stop selling online. Like, you are competing with the distributor who's telling you to convince your clients to shop small. It’s so wild." (21:10)
• On Unprofitable Retail:
  • “You’re in this loop because as soon as the cash comes in, you're placing another order... Meanwhile, you are competing with distributors and you are selling. They are your competition. Like, that is what's happened.” (32:10)

Timestamps for Key Segments

• 02:10 — Episode introduction and overview of the salon retail collapse theme
• 05:10 — Britt’s retail stance and historical program context
• 13:00–15:50 — Debunking diversion and “shop small” arguments
• 16:00 — The loss of product exclusivity and the structural shift to B2C
• 24:00–32:10 — In-depth look at real financials: inventory, dead stock, and math behind retail unprofitability
• 33:00 — Britt’s call to action: audit your retail program, recalibrate compensation
• 38:30 — Concluding thoughts on retail’s value and potential new directions

Takeaways for Stylists and Salon Owners

• Examine your retail program’s real profitability, not just revenue.
• Recognize the shift: it's not about convincing clients to shop the old way—consumer habits and industry structures have changed.
• Don’t penalize great stylists for low retail sales if the program isn’t even profitable.
• Explore hybrid models and commission partnerships rather than holding inventory.
• Above all, stay curious, get serious about business strategies, and adapt to the changing landscape to continue thriving.

For further details and strategic guidance, Britt advises listening to episode #404 ("2026 Predictions") or downloading her must-know industry PDF at thrivingstylist.com/mustknow.