Wig Store Business Overview
Wig stores sell hair replacement solutions, including wigs and hairpieces from human and synthetic hair. These businesses cater to customers seeking wigs for medical needs, fashion purposes, and personal style enhancement.
The most common business models in this industry include:
- Specialty Retail Store: Physical locations dedicated solely to wigs and hairpieces, offering personalized service and product fitting. Males and females in the 35 – 44 age group make up the most significant industry share, and for this market, a brick-and-mortar shop is a good fit for offering consultations and fittings.
- Online Wig Store: E-commerce platforms selling wigs directly to consumers, often with lower overhead costs and wider geographic reach.
- Beauty Supply Store with Wig Department: Retail spaces that include wigs as part of a broader beauty product inventory.
Related: Checklist To Start A Business
How Do Wig Stores Make Money?
Wig stores make money primarily through the sale of wigs, including fashion, medical, and theatrical varieties, which account for the largest share of their revenue due to consistent demand and broad customer appeal.
The most common services and products offered by wig stores include:
- Human Hair Wig Sales: Selling natural hair wigs priced between $200-$5,000.
- Synthetic Wig Sales: Offering machine-made wigs manufactured from synthetic fibers at lower price points between $30-$500.
- Hair Extension Sales: Providing temporary and semi-permanent hair extensions for customers wanting length or volume.
- Wig Styling Services: Customizing and styling wigs to suit individual customer preferences and needs.
- Wig Care Products: Selling specialized shampoos, conditioners, and tools designed for wig maintenance.
- Wig Repair Services: Fixing damaged wigs through reweaving, resizing, or other repair work.
Industry Statistics
The wig and hairpiece retail industry falls under NAICS code 44815: Wig & Hairpiece Stores. Here are some statistics that show how this industry is performing:
Wig Store Industry Size & Growth: The wig and hairpiece store industry generated $707.2 million in revenue last year. The industry has shown steady progress, with an average annual growth rate of 3.1% over the past five years. The industry is expected to rise due to increased consumer spending on hair care services and products, shifting hairstyle preferences and trends, and health conditions that can prompt hair loss and wig purchases. Additionally, technological advancements have led to more natural-looking and comfortable wigs, increasing their popularity. (IBISWorld).
Number of Wig Stores: 1,880 wig stores are operating nationwide, representing an 8.9% increase over the past five years. Sally Beauty Holdings maintains the largest market presence, controlling 22.9% of the industry. Most businesses in this sector are independently owned and operated single-location stores (IBISWorld).
Wig Store Profit Margin: Profit margins in the wig store industry average 9.2% and vary based on product mix and operational efficiency. Stores focusing on premium human hair wigs tend to see higher margins due to their higher retail prices, ranging from $200 to $5,000 per unit.
Startup Stories
Costs To Start a Wig Store
Starting a wig store could cost between $50,000 and $150,000, with variances based on location size, inventory levels, and whether the business is online or physical retail. The investment range includes costs for initial setup, store preparation, and starting inventory.
Here are some of the main costs to consider when starting a wig store:
Location and Setup: The first and last month’s rent plus security deposit for a retail space generally ranges from $6,000 to $15,000. Store renovations and fixtures add another $10,000 to $30,000 for display cases, mirrors, styling stations, and general store modifications to create an inviting retail environment.
Initial Inventory: A beginning inventory of wigs, hairpieces, and hair care products ranges from $25,000 to $75,000. This includes a mix of synthetic and human hair wigs in various styles, colors, and lengths to serve different customer needs and price points.
Equipment and Supplies: Basic equipment costs run between $5,000 to $15,000. This covers wig stands, styling tools, mannequin heads, cleaning supplies, and point-of-sale systems for processing transactions.
Training and Certification: Professional training and certification programs cost between $2,000 to $5,000. These programs teach proper wig fitting techniques, maintenance procedures, and customer consultation skills.
These figures represent rough estimates, and actual costs may be higher or lower.
Useful resources:
The American Wig Association
National Wigs for Cancer Society