What should I check before buying a beauty supply store?

A beauty supply store is a retailer, not a salon. Its health shows up in the shelves, the supplier relationships and the sales records rather than in a client book. A buyer who walks the store with a clipboard and then reads the records line by line will learn far more than one who relies on the listing summary. Start with the stock.

The stock: age, mix and expiry

Ask for a full stock list by product line and compare it with what is on the shelves and in the back room. Look for product that has sat a long time, items near or past their dates, and gaps where popular lines should be. Ask how slow stock has been handled in the past, and agree in writing how the stock count will be done at closing. A seller’s list is no substitute for your own count, and your accountant can advise on how stock is recorded.

Suppliers and distributor accounts

Many beauty supply stores depend on a handful of brands and distributors. Ask which accounts are in the store’s name, which depend on the current owner and whether any brand limits who can sell its products. Then ask the suppliers, with the seller’s permission, whether the account will carry on. See whether supplier rebates and loyalty programs transfer when you buy a retail store.

Who actually shops there

A store that sells to stylists and salon owners behaves differently from one that serves walk-in shoppers. Professional customers tend to buy in bulk and follow one person, while walk-in trade follows location and range. Ask the seller to split sales by customer type if the system allows it, and ask which regulars would be lost if the owner left.

Lease, shrink and the till

Read the lease for its remaining term, renewal rights and whether the landlord must consent to a transfer. Ask for shrink records and how theft and damage are tracked. Finally, ask to see the point-of-sale reports that sit behind the owner’s numbers, so you can test them against the bank deposits.