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Sally Beauty (SBH) Teams With Instacart for Same-Day Delivery

Sally Beauty Holdings, Inc. SBH, a leading professional hair color and care retailer, has been focused on driving growth via initiatives like enhancing customer centricity, product innovation, expanded distribution, and new concepts and services. The latest instance of the company’s approach is its nationwide partnership with Instacart to offer same-day delivery services.

This collaboration enables Sally Beauty to provide same-day delivery services from more than 2,200 store locations nationwide. With this service, customers can now have the access to purchase a wide range of beauty products and have them delivered to their doorsteps in as little as an hour.

Customer can choose from a diverse selection of over 7,000 products ranging from hair color and care essentials to skincare and nail products, all sourced from Sally Beauty's exclusive brands. This collaboration is part of a broader trend among retailers to meet increasing consumer demand for quick and convenient delivery options.

Driving Growth Through Customer-Centricity

After a successful small initial partnership earlier this year, Sally Beauty's partnership with Instacart has expanded nationwide. This strategic alliance merges Instacart's efficient delivery network with SBH's diverse range of high-quality beauty products, thus ensuring unparalleled convenience for consumers nationwide.

Management views this partnership as pivotal in advancing its omni-channel approach and commitment to accessibility. The company remains dedicated to prioritizing its customers by providing them with the latest technology and a variety of shopping options to ensure they have enhanced access to all their beauty essentials.
 
On the other side, Instacart remains encouraged about expanding its offerings beyond grocery by collaborating with Sally Beauty. This collaboration bolsters SBH's e-commerce capabilities and addresses prompt delivery of everyday beauty essentials, ensuring customers receive their necessities swiftly. Moreover, the company has always been dedicated to attracting new customers through targeted marketing programs, unique product offerings and strategic initiatives.

Wrapping up

Management expects this collaboration to contribute significantly to its top line. This strategic expansion into new partnerships and online marketplaces indicates a proactive approach to expanding customer base and revenue streams beyond traditional grocery delivery services.

However, Sally Beauty continues to battle tough macroeconomic challenges that have been putting pressure on consumer spending. Management is battling soft customer traffic and inflationary pressures. Unfavorable impact owing to store closures from the Store Optimization Program has also been hurting the company for a while. The currently Zacks Rank #3 (Hold) company’s shares have fallen 15.8% in the past three months compared with the industry’s decline of 8.7%.

That said, the abovementioned upsides, including partnership with Instacart underscores Sally Beauty’s position as a beauty retail leader with a focus on sustained success and customer engagement.

Zacks Investment Research
Zacks Investment Research


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Eye These Solid Picks

We have highlighted three better-ranked stocks, namely, Abercrombie & Fitch Co. ANF, The Gap Inc. GPS and DICK'S Sporting Goods DKS.

Abercrombie & Fitch, a specialty retailer of premium, high-quality casual apparel, currently sports a Zacks Rank #1 (Strong Buy) at present. ANF has a trailing four-quarter average earnings surprise of 210.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales and earnings indicates growth of 10.4% and 47.3%, respectively, from the year-ago figures.

Gap, a fashion retailer of apparel and accessories, currently flaunts a Zacks Rank #1. GPS has a trailing four-quarter earnings surprise of 202.7%, on average.

The Zacks Consensus Estimate for Gap’s current financial-year sales and earnings per share suggests a rise of 0.2% and 21.7%, respectively, from the year-earlier levels.

DICK'S Sporting operates as an omni-channel sporting goods retailer. It currently carries a Zacks Rank #2 (Buy). DKS has a trailing four-quarter earnings surprise of 4.7%, on average.

The Zacks Consensus Estimate for DICK’S Sporting current fiscal-year sales and earnings implies an improvement of 1.8% and 6.6%, respectively, from the prior-year numbers.

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