Leading Australian hair and beauty retailer Oz Hair and Beauty will open 10 new shopfronts across the country in a multi-million-dollar investment, marking a significant shift in e-commerce trends as shoppers allocate spending across both online and physical stores. Its latest store opens in March 2024 in Sydney’s Macquarie Centre, Macquarie Park.
The move by Oz Hair and Beauty aligns with recent analysis indicating that retailers with integrated online and physical stores, known as ‘Bricks and Clicks’ retailers, have outperformed marketplaces and pure e-commerce stores, and experienced a 7 per cent increase in online sales on 2019.
Australian Bricks and Clicks retailers specialising in beauty and personal care products are well positioned, with this market forecasted to grow to 8.09 billion by 2028, at a CAGR of 4.19 per cent from 2023-2038.
Oz Hair and Beauty was founded in 2012 by Anthony Nappa, whose parents have owned and operated hairdressing salons in Sydney for years, including their flagship OZ Hair salon in Sydney’s Queen Victoria Building (QVB) since 1986.
From left, Guy Nappa, COO and Anthony Nappa
By 2019, Oz Hair and Beauty was turning over $2 million a month and doubled its revenue to $40 million by 2021. In the same year, a consortium of investors, including Edison Growth Fund Accent Group, the CEO of Accent Group, Daniel Agostinelli, and billionaire businessman Brett Blundy bought a stake in the business for an undisclosed amount.
Today, it has six physical stores and salons in Sydney’s Penrith, Castle Hill and the QVB, as well as Erina Fair on the NSW Central Coast and Charlestown in Lake Macquarie, NSW. The company employs more than 120 people across its stores and its warehouse in Sydney’s Caringbah.
Oz Hair and Beauty will expand its stores to 15 by the end of the year, increasing its employee count to 165. Its latest store opening, this month, is in Macquarie Centre shopping centre in Sydney’s Macquarie Park. Three additional stores are earmarked for Sydney, including Rouse Hill, and one each for Canberra Centra, Green Hill in NSW’s Maitland, and prime locations in Brisbane and the Gold Coast.
Anthony says the company’s loyal customer base are increasingly craving online and in-store options equally. A 2023 KPMG report reveals the most successful retailers offer both options, and that their commitment to enhancing customer experiences and integrating online and in-person sales channels are their key distinguishing factors. This approach caters to the evolving nature of customer retail journeys, which often commence online but are completed in store.
He says: “The cost of running an online business has skyrocketed by more than 20 per cent in the past couple of years, with postage costs having soared by more 15 per cent alone.”
While the rising costs of running an online store has shifted the company’s focus to physical stores, Anthony says the shift is about more than just the bottom dollar: it is helping Oz Hair and Beauty give customers the personalised experience they crave.
“In the hair sector, particularly, our customers consistently seek advice, tips and support from specialist sales staff who help them find the best products, as they are qualified hair and beauty specialists. So, we’re taking that feedback and not just expanding across Sydney, but in other cities where we have a large and loyal customer base. With hair products making up most of our sales, we strive to ramp up the personalised and expert-led experience our customers love.”
Anthony, excited to tackle the venture, says: “Following COVID we continued to operate at a higher baseline and, we while we have continued to grow online, our data indicates the e-commerce sector has softened as that rate of growth was unsustainable. Our analysts now predict a slower and more stable trajectory that a rising physical store presence will complement.”
Accent Group CEO Daniel Agostinelli says: “Over the years Oz Hair and Beauty has successfully grown and pivoted in tune with changing retail trends and that has helped it emerge as one of Australia’s leading hair and beauty retailers. Its physical move into customer strongholds across the country showcases a savvy and customer-centric approach. I believe the next two years will be exciting as it takes its omnichannel retail model to the next level.”
