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<\/p>\nThere are acquisition strategies built through months of modelling, board papers and corporate courtship. Then there is Anthony Nappa\u2019s approach to Beauty Works. The CEO of Oz Hair & Beauty walked past an attractive shop, admired the fit-out and decided to make a phone call. \u201cWe couldn\u2019t get into Melbourne Central, so I called them up, and they were happy to sell,\u201d he told Inside FMCG. Nappa had long wanted a credible foothold inside one of Victoria\u2019s busiest shopping centres, and <\/p>\n
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There are acquisition strategies built through months of modelling, board papers and corporate courtship. Then there is Anthony Nappa\u2019s approach to Beauty Works.The CEO of Oz Hair & Beauty walked past an attractive shop, admired the fit-out and decided to make a phone call. \u201cWe couldn\u2019t get into Melbourne Central, so I called them up, and they were happy to sell,\u201d he told Inside FMCG. Nappa had long wanted a credible foothold inside one of Victoria\u2019s busiest shopping centres, and Beauty Works already occupied an appealing tenancy, offered professional services and had customers coming through the door. \u201cThey wanted to sell, we wanted to buy \u2013 and it worked,\u201d Nappa said.The deal was set in stone earlier this month, including two physical stores and an established e-commerce business, taking Oz Hair & Beauty\u2019s national network to 34 stores, with another nine scheduled before the end of this year. For the retailer that began as Rockdale family salon in 1986, it\u2019s a significant acceleration. Oz Hair & Beauty entered e-commerce in 2012 under Nappa, then a 19-year-old university student, and was joined by his brother, Guy, in 2017, who now serves as co-owner and chief operating officer. Collectively, the brothers lead a company that employs more than 500 people and achieved an annual revenue of more than $100 million earlier this year. Nappa previously described growth as a patient, store-by-store exercise that prioritised capability over speed. The Beauty Works purchase appears bolder, though he rejects any grand acquisition doctrine.\u201cWe look at everything. And I wouldn\u2019t say just because we did Beauty Works that now we\u2019re going to do heaps of acquisitions,\u201d he said. \u201cBut then equally, I wouldn\u2019t say we\u2019re never ever going to do more acquisitions.\u201d Nappa noted that the team didn\u2019t sit down and agree that 2026 was the \u2018year for acquisitions\u2019, but Beauty Works emerged as a conjunction of timing, location and commercial compatibility. Evidently, the appeal was strong, with a working store, proven sales, a suitable fit-out, and an online operation already functioning beyond the retail surface.\u00a0The sought-after ground levelIn Melbourne Central, suitable ground-floor space carries a mercantile allure. \u201cThere\u2019s more demand than there is supply,\u201d he said, while also recognising the challenge of securing the right tenancy in such a strongly held shopping destination. Opening a new shop usually requires Oz Hair & Beauty to estimate likely sales, albeit with limited accuracy after dozens of openings, whereas Beauty Works supplied an existing operation. \u201cWe knew the sales that it was doing, and we knew what we could do with those sales,\u201d he said. \u201cThey\u2019re the boxes that we wanted to tick.\u201dThe Melbourne Central store will be rebranded as Oz Hair & Beauty, with its existing fit-out remaining. Nappa said it doesn\u2019t look like Oz Hair & Beauty, but reassures that it doesn\u2019t matter. \u201cIt still looks very, very nice,\u201d Nappa said. Beauty Works\u2019 website and marketplace presence will continue under their current identity for now, preserving an online audience Oz Hair & Beauty has little incentive to unsettle. Beauty Works has a very loyal online following, and Oz Hair & Beauty wanted to respect that identity rather than move too quickly.More Oz Hair & Beauty servicesMore consequentially, Beauty Works brings Oz Hair & Beauty\u2019s capabilities that it has been cultivating across its network. Around 13 Oz Hair & Beauty stores already include a hairstylist, while Beauty Works combines retail with a salon, beauty room and scalp spa. \u201cThey\u2019ve got the head spa, which we don\u2019t have,\u201d Nappa said. \u201cSo we want to see how that works, and then, if it works as we think it should, then we may start to incorporate that into more of our stores.\u201d\u00a0Nappa still speaks cautiously about turning a promising idea into a costly strategy. For Oz Hair & Beauty, services can drive repeat visits and stronger customer relationships, yet staffing and operational complexity make them difficult to replicate nationally. \u201cIf we open up 15 stores a year, I\u2019d say three or four of them would have a service element to it,\u201d he said. \u201cAnd if they start to become more profitable, then you never know, maybe more. But it\u2019s a lot harder to do it at scale.\u201d Considering the beauty retail market is worth over 6 billion in Australia, Beauty Works can be viewed as both an acquisition and audition, in other words, a beautifully fitted Melbourne shop whose future influence will be earned one customer at a time.<\/p>\n","protected":false},"excerpt":{"rendered":"There are acquisition strategies built through months of modelling, board papers and corporate courtship. 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