Sally Beauty Holdings, a specialty beauty retailer and distributor based in the US, has selected Infosys for IT transformation.
India-based Infosys will implement best practices in IT operations to bring efficiencies through the optimization of IT service delivery.
Sally Beauty has generated sales of $942 million (up 1.2 percent) with gross margin of 51 percent for its third quarter ended June 30, 2024. E-commerce sales of Sally Beauty were $92 million, representing 9.7 percent of net sales. Sally Beauty is targeting capital expenditures of $100 million for fiscal-year. It does not disclose spending on digital transformation.
Sally Beauty has 3,128 stores globally. Sally Beauty has 16 million loyalty members accounting for 78 percent of sales in US/Canada.
Scott Lindblom, CIO of Sally Beauty, said: “We are collaborating with Infosys as we take SBH into the future by modernizing our IT service delivery and meeting the goals set by our “Fuel for Growth” initiative. Embracing AI-amplified IT is a significant step forward for us in enabling us to, in turn, deliver exceptional experiences for our customers.”
Sally Beauty says its Store/DC optimization plan resulted in approximately $50 million in SG&A savings and $10 million benefit to operating earnings in FY23. Sally Beauty’s Fuel for Growth strategy is expected to deliver $20 million benefit across gross margin and SG&A in FY24. Fuel for Growth is expected to deliver $50 million benefit in FY25 with cumulative run-rate benefits approaching $120 million by end of FY26.
The collaboration will also help Sally Beauty standardize and simplify their IT systems and services by implementing AI-driven hyper-automation. The transformation will enable SBH to activate enhanced IT services with 24/7 predictive and proactive monitoring.
Karmesh Vaswani, Global Head of Consumer, Retail and Logistics, Infosys, said the project will consolidate numerous support services, drive process improvements and optimize costs over a five-year window.
Infosys has generated 13.8 percent of its total revenue from the retail customers in the first-quarter of fiscal 2025. Revenue of $2,776 million from North America represented 58.9 percent of the total sales for Infosys.
Baburajan Kizhakedath
