104-year-old national hair salon chain quietly closes 50 locations

When I was three years old, I secretly grabbed a pair of scissors and cut my own hair. Naturally, I gave myself bangs. Few women have the face shape to pull off bangs, although Dakota Johnson and Monica Bellucci come to mind as rare exceptions who do it perfectly.

Unfortunately, we ordinary mortals are usually better off leaving our hair alone. That’s why I never wore bangs again, nor did I ever attempt to cut my own hair. Instead, like millions of others, I happily outsourced the job to hair salons and professional hairdressers.

Because of this universal need, hairdressing is one of those timeless professions that will likely never go away or be replaced by AI. Nonetheless, a steady demand for a service is no guarantee of business success, as other macroeconomic factors play a key role.

May industry data reveal a notable channel divide in the hair care sector, with consumers allocating more money toward prestige professional hair treatments, while mass-retail shelf spending was marked by value-seeking consumer behavior, according to retail analytics firm Circana. 

While overall consumer interest in the United States remains healthy, individual brick-and-mortar storefronts are facing heavy margin pressures from labor deficits and soaring commercial rents.

Data published by Business Research Insights highlights these exact systemic roadblocks, noting that “48% of salons report rental expenses as a major burden and 52% struggle with skilled labor shortages.”

In the latest development, a century-old national hair salon giant has quietly averaged another 50 store closures per quarter this fiscal year, following back-to-back years of shuttering over 400 locations annually.

Regis, owner of SmartStyle, Supercuts, Cost Cutters, closes another 50 locations 

Regis, the owner of several popular hair salon brands including Supercuts, Cost Cutters, and Roosters reported its earnings results for the third quarter of fiscal 2026 on May 13. The company disclosed solid results and cash flow generation. 

“We are encouraged by the momentum we are building, particularly at Supercuts and our company-owned salons, which delivered same-store sales growth of 5.0% and 9.6%, respectively,” stated Regis Corporation CEO Susan Lintonsmith. 

Regis Q3 fiscal 2026 results key highlights: Consolidated revenue of $52.4 million, compared to $57.0 million in the same period of 2025. (Regis attributes the $4.6 million decrease primarily to lower royalties, fees, and non-margin franchise rental income.) Sixth consecutive quarter of positive cash from operations.Net income was $700,000 versus $300,000 in the third quarter of fiscal 2025. Adjusted EBITDA was $7.7 million versus $7.1 million in the comparable period of last year. 
 Source: Regis press release 

During the earnings call, Regis CFO Kersten Zupfer confirmed recent closures. 

“During the first 9 months of fiscal year 2026, our franchise location count declined by 150 locations, net of openings or approximately 50 locations per quarter, and we expect fourth quarter net decline to be generally consistent with that recent run rate,” Zupfer said, according to a transcript provided by The Motley Fool. 

Regis, the owner of SmartStyle, Supercuts, and Cost Cutters, closes another 50 locations. 

Luis Sinco on Getty Images

Why has Regis been closing hundreds of salon locations a year? 

Regis has been closing at least 100 locations every year since 2020, TheStreet Co-Editor-in-Chief Daniel Kline previously reported. 

“The decline is part of a broader structural shift by Regis — consolidating and slimming down its brands, and focusing more on an asset-light franchising model,” wrote Kline. 

A major structural shift in Regis strategy happened in 2016, when Regis sold off its entire mall-based salon portfolio (roughly 1,100 salons, including MasterCuts) to a private equity-backed operator called The Beautiful Group, according to Huron Consulting. 

Related: Another mall retailer quietly closes 7 stores, plans more

In the 1990s and 2000s, Regis was famous for dominating American shopping malls with flagship brands, including Regis Salons, MasterCuts, and Trade Secret. However, as mall foot traffic declined across the country, those premium mall leases ended up hurting the company’s profit margins. 

To address the challenges, Regis shifted its focus from malls to strip malls and Walmart Supercenters, where it operates full-service hair salons offering haircuts, color treatments, perms, and waxing under the SmartStyle brand. 

The data suggest that Regis closures over the last few years are not related to the state of the mall retail industry in the United States. However, the company has been shuttering underperforming salons amid current minimum wage hikes and localized rent increases. 

“As of March 31, 2026, our franchise location count was down 279 salons compared to March 31, 2025. The locations that closed were primarily underperforming stores with significantly lower trailing 12-month sales than our top-performing units. The average unit volume of the closed locations was approximately $130,000, roughly $350,000 below the average unit volume of stores in our highest performing quartile,” explained Zupfer. 

The worst might be over for Regis hair salons 

As of March 31, 2026, Regis had 3,770 total franchise and company-owned salons, according to its May 13 filing with the Securities and Exchange Commission (SEC), down from the 3,941 it owned on June 30, 2025. 

While occasional store closures for giant chains such as Regis are part of normal business operations, the closure of hundreds of stores each year could suggest more trouble for the operator. However, the company highlighted that the franchise count declined by only 150 over the first nine months, which is significantly less than prior annual declines of 414 and 430. 

Last year, during the first-quarter earnings call, Zupfer hinted that the worst might be over for the company. 

“We continue to believe fiscal year 2025 was the last year of closures in this order of magnitude,” she said. 

The latest numbers align with her projections. 

“Many of the prior year closures involved underperforming locations that reached the end of their lease life and their exit has contributed to a stronger, more productive remaining salon base,” Zupfer concluded. 

104-year-old legacy commitment to “making people look and feel beautiful” 

Regis started as one hair salon in 1922 and over the years, grew into a multibillion-dollar corporation “committed to making people look and feel beautiful,” reads the company’s The Regis Story page. 

One hundred and four years ago, Paul and Florence Kunin opened Kunin Beauty Salon, which quickly gained popularity and grew into a chain of value-priced salons across department stores. 

In 1958, their son Myron bought the chain, changed the company name to Regis, and started moving salons to freestanding locations in enclosed shopping malls. 

The 1996 was a key year for the chain, as Regis acquired Supercuts, expanding its presence into strip centers and street locations and growing its franchising operations. Over the next few years, the company acquired more brands and expanded its presence across the country, Canada, and the United Kingdom. 

Regis salon brands: SupercutsSmartStyleCostCuttersFirst Choice Haircutters Roosters BoRics  Regis Salons MasterCuts  Pro-Cuts Holiday Hair Famous Hair Island Haircutting Co. Magicuts Style America City Looks Salons  Cool Cuts 4 Kids Beauty Supply Outlet 
Source: Regis 
What Regis closures mean for the hair industry and consumers 

The demand for professional hair services is still strong in the United States. “In 2024, more than 198 million Americans received at least one professional salon service, representing 59 percent of the adult population,” according to data from Market Reports World.

Moreover, hair services accounted for 66% of U.S. salon demand, and average consumer visit frequency reached 7.4 visits per year, driven by haircuts, hair color, and manicure services. 

However, despite the strong demand, even large hair salon chains such as Regis are not immune to the current economic challenges. “Labor shortages affected 24% of salons, operational expenses increased by 27%, and customer retention challenges reduced repeat visits by 18% across independent salon businesses,” industry data from Precision Reports reveal.

GlobalData Retail Managing Director Neil Saunders warned earlier this year that top companies will be forced to reduce their footprints in 2026 to remain profitable amid rising costs. “Part of this involves closing underperforming stores that are not producing sales growth or contributing to profits,” he said.

Saunders, however, believes that closing underperforming locations is not a bad sign, since it keeps store portfolios lean, MarketRealist reported. 

Bottom line, just like previously Regis made a strategic move to exit enclosed malls, the closure of underperforming locations might just be what the company needs to remain profitable in the current economic climate. 

Although this shifting footprint may mean consumers will need to drive a bit further for a haircut, a leaner, more profitable salon network ultimately helps ensure the century-old brand survives to serve them.

Related: Pizza Hut shuts down 49 restaurants

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