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Merle Norman Cosmetics

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Merle Norman Cosmetics Inc.
Company typePrivate
IndustryCosmetics
Founded1931; 93 years ago (1931)
FounderMerle Norman
HeadquartersLos Angeles, California, U.S.
Number of locations
1,007 (2021)
Area served
United States
Canada
Guatemala
Bahrain
United Arab Emirates
Hong Kong
Taiwan
Key people
Products
ServicesDay spa
RevenueUS$100 million (2018)[1]
Websitewww.merlenorman.com

Merle Norman Cosmetics Inc. or simply known as Merle Norman, is an American cosmetics company that manufactures skin care, personal care, and makeup products founded in 1931 by Merle Norman.[2] The company sells its products through e-commerce and its beauty store studio franchises, along with operating day spas through its Merle Norman Spa brand. As of 2021 the company had 1,007 locations throughout 7 countries, primarily in North America.[3]

History

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Merle Norman, with her education in chemistry, started making makeshift cosmetic products in her home kitchen to sell to her neighbors while her nephew, J.B. Nethercutt, worked as the delivery peddler.[4] Growing in local popularity, in 1931, she opened her first official cosmetics studio in Santa Monica for $150 during the Great Depression.[5] By 1934, the company had expanded to dozens of independently owned studios across the contiguous United States which were predominately owned by women.[6] By the 1940s the company expanded overseas to Asia, marketing in Thailand.[7] During the American involvement in World War II, the company produced gun oil and camouflage.[8]

In 1963, Norman stepped down as chairman and passed down the company to J.B. Nethercutt.[6] In 1969, the company changed to be publicly traded on the American Stock Exchange (AMEX).[9] The company sold 400,000 shares at $25.[10] The company opened secondary factory in Sylmar, Los Angeles in 1971, and a forward distribution center in Memphis, Tennessee for its East Coast studios in 1973.[11] In 1974, the family bought back all the public stock due to a lack of demanded trading interest, and the company reverted to being privately held.[12]

In the 1980s, Merle Norman was named one of the ten largest American cosmetic companies by People magazine.[13] The company started its first national advertising campaign, having previously only used word-of-mouth marketing regionally, including being the primary sponsor of the 1981 Met Gala.[14] The company experimentally expanded to Europe in 3 countries, but would leave the continent by the next decade.[6] In 1999, the company redesigned its studios to have a common interior.[15]

In 2004, Nethercutt passed the company down to his son, Jack Nethercutt II.[16] In 2007, the company was ranked No. 21 in Entrepreneur magazine's Franchise 500.[17] Merle Norman expanded to the Middle East by 2011.[18] Later in the year, the company unveiled a new separate logo emblem with an updated wordmark along with a redesign of product packaging.[19] From 2012 to 2019, the company had a decline of 269 studio units.[20] In 2018, the company announced its beginning of day spa services to select studio outlets in the United States and Canada.[21]

In 2019, Merle Norman's products were available for purchase online through e-commerce.[22] The company produced WHO hand sanitizer during the COVID-19 pandemic.[23]

Operations

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Merle Norman is a privately held family owned company by the Nethercutt-Richards family. The corporate headquarters is located in Los Angeles, California.[24] The company is a member of the Personal Care Products Council.[25]

The company sells its products online and through its own retail franchise studios, nearly all of which are independently owned.[3] The primary manufacturing plant and distribution center is located in Westchester, Los Angeles and is connected to the corporate headquarters. In 1971, a secondary plant was opened in Sylmar, Los Angeles which produces the containers and packaging for its products.[11]

Merle Norman is certified by PETA as cruelty-free.[26] The company uses non-vegan ingredients.[27]

Merle Norman Spa

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A Merle Norman Spa at the Chinook Centre in Calgary

Merle Norman Spas are select specialized outlets throughout the United States and Canada that offer day spa services, including facial treatments and massages from trained estheticians.[5]

Locations

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A Merle Norman studio in Crabtree Valley Mall in Raleigh
Studio in Colorado Springs, Colorado

Below is a list of current domestic and international studio outlets as of 2021, with there being 955 throughout 49 U.S. states and 52 locations throughout 8 Canadian Provinces and 5 countries abroad totaling 1,007.[3]

U.S. and Canada

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International

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Sponsorship

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Merle Norman was the primary sponsor of the 1981 Met Gala with the event's theme of The Eighteenth-Century Woman.[14]

The company sponsors the USC Trojans and funded Merle Norman Stadium for the school's new NCAA Division I beach volleyball program in 2012.[34] From 2020, the company sponsored the Arizona Cardinals Cheerleaders in the NFL.[35]

References

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  1. ^ Smith, David (November 28, 2018). "Low-Cost, High-Value Franchise Ideal for Immigrant Entrepreneurs".
  2. ^ "Bloomberg – Merle Norman Cosmetics Inc". www.bloomberg.com. Retrieved 2020-07-29.
  3. ^ a b c "Merle Norman Cosmetics Inc. Franchise Information". Entrepreneur. Retrieved 2020-04-08.
  4. ^ Beale, Lauren (2015-11-11). "Home built for cosmetics magnate Merle Norman is for sale in Santa Monica". Los Angeles Times. Retrieved 2020-09-05.
  5. ^ a b "Merle Norman Building | Santa Monica Conservancy". www.smconservancy.org. Retrieved 2020-07-21.
  6. ^ a b c "Makeup Chain Seeks Wider Awareness". The New York Times. 1981-03-31. ISSN 0362-4331. Retrieved 2020-04-09.
  7. ^ Lichterman, Courtney. "Bangkok's forgotten shopping centre". www.bbc.com. Retrieved 2020-08-28.
  8. ^ Kragen, Aubrey (April 6, 2020). "USC Alum's Company Changes Course During Crisis". USC Athletics. Retrieved 2020-04-08.
  9. ^ Data, Bryan Taylor, Chief Economist, Global Financial (5 November 2020). "A New Index of the American Stock Exchange". Global Financial Data. Retrieved 2023-02-28.{{cite web}}: CS1 maint: multiple names: authors list (link)
  10. ^ Going Private The Yale Law Journal. Vol. 84: 903, 1975.
  11. ^ a b Baker, Katheryn (1993-09-24). "Hidden Treasures in Sylmar : * Facilities housing vintage cars, musical instruments and guide dogs are tucked into the suburban landscape". Los Angeles Times. Retrieved 2020-08-01.
  12. ^ "Going Private". Yale University. 84: 3–18. 1975.
  13. ^ Kalter, Suzy (July 20, 1981). "As a Merchant of Beauty, Merle Norman's J.B. Nethercutt Has Grown Handsomely Rich". PEOPLE.com. Retrieved 2020-04-23.
  14. ^ a b Morris, Bernadine (1981-12-08). "18TH CENTURY SPARKS GALA FASHION NIGHT". The New York Times. ISSN 0362-4331. Retrieved 2021-07-29.
  15. ^ Thomas, Barbara (1999-09-24). "Merle Norman Gets a Make-Over : Aiming for a youthful glow, the once-fusty L.A. chain is modernizing its stores and expanding its offerings". Los Angeles Times. Retrieved 2020-09-05.
  16. ^ "Most Influential Family Owned Businesses 2019: MERLE NORMAN COSMETICS | Los Angeles Business Journal". labusinessjournal.com. 28 October 2019. Retrieved 2020-09-05.
  17. ^ "2007 Franchise 500 Ranking". Entrepreneur. Retrieved 2020-09-03.
  18. ^ "Merle Norman Cosmetics opens first studio in Abu Dhabi". Al Bawaba. August 16, 2011. Retrieved 2020-08-05.
  19. ^ "Venerable cosmetics company Merle Norman gets a makeover". LA Times Blogs - All The Rage. 2011-05-03. Retrieved 2020-07-25.
  20. ^ "Merle Norman Locations (Units)". Entrepreneur. Retrieved 2020-08-08.
  21. ^ "Beauty and Spa Franchises - Merle Norman Cosmetic Studio- Spa Franchise". merlenormanfranchise.com. 20 November 2017. Retrieved 2021-11-10.
  22. ^ "Merle Norman | BORN Group". www.borngroup.com. 2020-06-17. Retrieved 2021-11-10.
  23. ^ Westine, Lezlee (2020). "Caring for Our Communities: The Beauty and Personal Care Industry's Response to the Coronavirus Pandemic". Personal Care Products Council. Retrieved 2020-05-20.
  24. ^ "Most Influential Family Owned Businesses 2019: MERLE NORMAN COSMETICS | Los Angeles Business Journal". labusinessjournal.com. 28 October 2019. Retrieved 2020-04-09.
  25. ^ "Member Companies". Personal Care Products Council. Retrieved 2020-05-20.
  26. ^ Rose, Suzana. "Is Merle Norman Cruelty-Free? • Latest Cruelty-Free Kitty Update". Cruelty-Free Kitty. Retrieved 2020-05-14.
  27. ^ "Merle Norman is cruelty-free but not 100% vegan". Stylishly Vegan. Retrieved 2020-05-13.
  28. ^ "Merle Norman locations in Alberta (Canada) - online brands".
  29. ^ "Merle Norman Cosmetics Locations & Hours Near Las Vegas, NV".
  30. ^ "Merle Norman locations in Ontario (Canada) - online brands".
  31. ^ "Business Directory Search - Canton Texas Chamber of Commerce, TX".
  32. ^ "Merle Norman Cosmetics opens first studio in Abu Dhabi".
  33. ^ https://www.mystore411.com/store/view/3933945/Taiwan/Merle-Norman-Cosmetic-Studio-Taipei-City [bare URL]
  34. ^ Smith, Michael (November 17, 2014). "Sponsors join effort to boost USC women's athletic programs". www.sportsbusinessdaily.com. Retrieved 2020-08-08.
  35. ^ "Merle Norman Partners With Cardinal Cheerleaders". HAPPI. December 12, 2020. Retrieved 2020-12-04.
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