Merle Norman Cosmetics

Merle Norman Cosmetics, known as Merle Norman (/ˈmɜːrl ˈnrmən/), is an American multinational cosmetics company that manufactures makeup, skin care, personal care, and fragrance products headquartered in Los Angeles, California.[4] The company is known for pioneering the "Try Before You Buy" philosophy, letting customers try on products for free before purchasing.[5][6]

Merle Norman Cosmetics Inc.
TypePrivate
IndustryCosmetics
Founded1931 (1931) in Santa Monica, California, USA
FounderMerle Norman
J.B. Nethercutt
HeadquartersLos Angeles, California, USA[1]
Number of locations
1,117 outlets (2019)[2]
Key people
Jack Nethercutt II (chairman)
Travis Richards (vice president)
ProductsCosmetics
Skin care
Personal care
Fragrance
ServicesDay spa
Revenue US$100 million (2018)[3]
Websitewww.merlenorman.com

The first studio outlet was opened in 1931 in Santa Monica by Merle Norman and as of December 2019 the company had 1,117 locations in 7 countries, primarily in the United States with studio outlets in 49 states and D.C.[2][7]

History

Merle Norman founded the company with her nephew, J.B. Nethercutt by making makeshift cosmetics in her home kitchen.[8][9] In 1931, they opened her first cosmetics studio in Santa Monica for $150.[5][10] By 1934, the company had expanded to dozens of independently owned studios across the contiguous United States.[11][5]

By the 1940s the company expanded overseas to Asia, marketing in Thailand.[12][13] During the American involvement in World War II, the company produced gun oil and war paint.[14][15]

In 1963, Norman stepped down as chairman and passed down the company to J.B. Nethercutt.[5] In 1969, the company changed to be publicly traded on the American Stock Exchange (AMEX). The company sold 400,000 shares at $25.[16]

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.[17] In 1974 the family bought back all the public stock at around an estimated US$10 million, $55 million adjusted for inflation[18] due to a lack of trading interest and the company was reverted to privately held.[5][19]

In the 1980s, Merle Norman was named one of the ten largest American cosmetic companies by People magazine.[20] The company started its first national advertising campaign, which the company had previously only used word-of-mouth marketing regionally. The company expanded to Europe and sold US$1 million by the first year, but would leave the continent by the next decade.[5]

In 1999 the company redesigned its studios to have a common interior.[21] In 2004, Nethercutt passed the company down to his son, Jack Nethercutt II.[6] In 2007 the company was ranked No. 21 in the Entrepreneur magazine Franchise 500.[22]

Merle Norman expanded to the Middle East by 2011.[23] Later in the year, the company unveiled a new separate logo emblem with an updated wordmark along with a redesign of product packaging.[24] From 2012 to 2019 the company had a decline of 269 studio units.[25]

In 2020 the company produced WHO hand sanitizer during the COVID-19 pandemic.[14][26]

Operations
Interior of a studio in Colorado Springs, Colorado

The company is a privately held family owned company by the Nethercutt-Richards family.[27] The corporate headquarters is located in Los Angeles, California and has 529 employees.[28]

As of 2020, Entrepreneur magazine ranked the company No. 366 in the Franchise 500 and 113 in the top global ranking.[29][30]

Merle Norman is a member of the Personal Care Products Council.[31]

Facilities

The primary manufacturing plant and distribution center is located in Westchester, Los Angeles and is connected to the corporate headquarters.[28] In 1971 a secondary plant was opened in Sylmar, Los Angeles which produces the containers and packaging for its products.[17] The company operated a tertiary 73,768 square foot distribution center from 1976 to 2015 in Memphis, Tennessee.[32]

Product testing

Merle Norman is certified by PETA as cruelty-free.[33][34] The company uses non-vegan ingredients.[35]

Locations
90s era studio at Oakway Center in Eugene, Oregon

Below is a list of current and former studio outlet locations:

Former locations

As of December 2019, the company operates 1,117 studios in 7 countries throughout North America and Asia. The majority of them (1,064) are located in the United States across 49 states and D.C.[38][2]

Merle Norman operates 51 studio outlets internationally, in the rest of North America, the company has studios in Canada across 8 provinces and 1 location in Guatemala.[39] In the Middle East, Merle Norman operates in Bahrain and the UAE in 3 emirates, with the most studios in Dubai.[23][24] Throughout Eastern Asia, the company operates in Taiwan and Hong Kong.[39][40][2]

Sponsorship

Merle Norman sponsors professional and collegiate athletic teams, including the USC Trojans with producing exclusive makeup and sunscreen in the school's colors and funding the beach volleyball program's new Merle Norman Stadium in 2012.[41][42] The company became a sponsor of the Arizona Cardinals Cheerleaders in the NFL from 2020.[43]

Aviation
A Merle Norman Gulfstream IV at Van Nuys Airport

Merle Norman Aviation Division operates the following aircraft: (as of July 2018)[44][45]

Aircraft In fleet Orders Notes
Gulfstream II 1 -
Gulfstream IV 1 - [46]
Total 2

The company's custom livery designs have been recreated on flight simulators such as X-Plane.[47] An ex-Paramount Pictures Gulfstream IV was delivered in 2017.[48]

Historical fleet

References
  1. https://www.bloomberg.com/profile/company/3645503Z:US
  2. "Merle Norman Cosmetics Inc. Franchise Information". Entrepreneur. Retrieved 2020-04-08.
  3. Smith, David (November 28, 2018). "Low-Cost, High-Value Franchise Ideal for Immigrant Entrepreneurs".
  4. "Bloomberg – Merle Norman Cosmetics Inc". www.bloomberg.com. Retrieved 2020-07-29.
  5. "Makeup Chain Seeks Wider Awareness". The New York Times. 1981-03-31. ISSN 0362-4331. Retrieved 2020-04-09.
  6. "Most Influential Family Owned Businesses 2019: MERLE NORMAN COSMETICS | Los Angeles Business Journal". labusinessjournal.com. Retrieved 2020-09-05.
  7. Facebook (1992-01-17). "Beauty on Wheels : Merle Norman Collection Contains Classic Cars and Unusual Musical Instruments". Los Angeles Times. Retrieved 2020-08-14.
  8. "Home built for cosmetics magnate Merle Norman is for sale in Santa Monica". Los Angeles Times. 2015-11-11. Retrieved 2020-09-05.
  9. "J.B. Nethercutt, 91; Co-Founder of Merle Norman, Car Collector". Los Angeles Times. 2004-12-10. Retrieved 2020-04-08.
  10. "Merle Norman Building | Santa Monica Conservancy". www.smconservancy.org. Retrieved 2020-07-21.
  11. "J. B. Nethercutt -- Cosmetics tycoon Merle Norman's co-founder". UPI. Retrieved 2020-04-08.
  12. Lichterman, Courtney. "Bangkok's forgotten shopping centre". www.bbc.com. Retrieved 2020-08-28.
  13. "Nightingale-Olympic: Bangkok nostalgia and back-breaking relics | CNN Travel". travel.cnn.com. Retrieved 2020-08-29.
  14. Kragen, Aubrey. "USC Alum's Company Changes Course During Crisis". USC Athletics. Retrieved 2020-04-08.
  15. "Success Story: Merle Norman Launches New Hand Sanitizer Product | BORN". www.borngroup.com. Retrieved 2020-08-14.
  16. Going Private The Yale Law Journal. Vol. 84: 903, 1975.
  17. Facebook (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.
  18. "CPI Inflation Calculator JAN 1974-JUNE 2020". www.bls.gov. Retrieved 2020-08-08.
  19. https://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=6305&context=ylj
  20. "As a Merchant of Beauty, Merle Norman's J.B. Nethercutt Has Grown Handsomely Rich". PEOPLE.com. Retrieved 2020-04-23.
  21. "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. 1999-09-24. Retrieved 2020-09-05.
  22. "2007 Franchise 500 Ranking". Entrepreneur. Retrieved 2020-09-03.
  23. "Merle Norman Cosmetics opens first studio in Abu Dhabi". Al Bawaba. Retrieved 2020-08-05.
  24. "Venerable cosmetics company Merle Norman gets a makeover". LA Times Blogs - All The Rage. 2011-05-03. Retrieved 2020-07-25.
  25. "Locations (Units)". Entrepreneur. Retrieved 2020-08-08.
  26. "Caring for Our Communities: The Beauty and Personal Care Industry's Response to the Coronavirus Pandemic". Personal Care Products Council. Retrieved 2020-05-20.
  27. "Most Influential Family Owned Businesses 2019: MERLE NORMAN COSMETICS | Los Angeles Business Journal". labusinessjournal.com. Retrieved 2020-04-09.
  28. "Merle Norman Cosmetics Careers & Jobs". www.zippia.com. Retrieved 2020-07-23.
  29. "2020 Franchise 500 Ranking". Entrepreneur. Retrieved 2020-07-22.
  30. "2020 Top Global Franchises Ranking Page 3". Entrepreneur. Retrieved 2020-08-03.
  31. "Member Companies". Personal Care Products Council. Retrieved 2020-05-20.
  32. "Developer Buys Former Merle Norman Warehouse". Memphis Daily News. Retrieved 2020-08-07.
  33. "How Cruelty-Free Is Your Morning Routine" (PDF). www.peta.org. Retrieved 2020-04-29.
  34. Rose, Suzana. "Is Merle Norman Cruelty-Free? • Latest Cruelty-Free Kitty Update". Cruelty-Free Kitty. Retrieved 2020-05-14.
  35. "Merle Norman is cruelty-free but not 100% vegan". Stylishly Vegan. Retrieved 2020-05-13.
  36. "Makeup Chain Seeks Wider Awareness". March 31, 1981 – via NYTimes.com.
  37. "Nightingale-Olympic: Bangkok nostalgia and back-breaking relics". CNN Travel.
  38. "Merle Norman Cosmetics, Inc. | Company Profile | Vault.com". Vault. Retrieved 2020-04-09.
  39. "Merle Norman Location Map". www.merlenorman.com. Retrieved 2020-08-04.
  40. "Merle Norman - HONG KONG, Hong Kong". Mystore411.
  41. Moore, Jordan. "Polish Up for the Women of Troy". USC Athletics. Retrieved 2020-08-08.
  42. "Sponsors join effort to boost USC women's athletic programs". www.sportsbusinessdaily.com. Retrieved 2020-08-08.
  43. "Merle Norman Partners With Cardinal Cheerleaders". HAPPI. Retrieved 2020-12-04.
  44. "Aircraft Ownership | MERLE NORMAN COSMETICS INC". prijet.com. Retrieved 2020-08-01.
  45. "Merle Norman Aviation Division 16644 Roscoe Blvd Van Nuys, CA - MapQuest". www.mapquest.com. Retrieved 2020-07-27.
  46. "FAA Registry - Aircraft - Merle Norman Cosmetics". registry.faa.gov. Retrieved 2020-07-25.
  47. "N746MN livery for Gulfstream G-IV SP V11". X-Plane.Org Forum. Retrieved 2020-07-24.
  48. "Registration Details For N75VB (Paramount Pictures Corporation) Gulfstream IV- - PlaneLogger". www.planelogger.com. Retrieved 2020-08-08.
  49. "Registration Details For N748MN (Merle Norman Cosmetics Inc) G-159 Gulfstream I- - PlaneLogger". www.planelogger.com. Retrieved 2020-07-24.
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