Is the Art of Shaving Going Out of Business?

The Art of Shaving, a leading retailer specializing in high-end shaving accessories and grooming products for men, has recently been the subject of rumors and speculation about potential financial troubles or even closing down. With recent store closures and shifts in strategy, some have wondered whether the company is struggling to stay afloat in a crowded market increasingly dominated by online shaving clubs and subscription services.

This article provides a thorough examination of The Art of Shaving – from its founding and successes to the challenges it currently faces – in order to address the rumors head-on and offer perspective on what lies ahead for this pioneer brand.

The Art of Shaving was founded in 1996 to provide a superior shaving experience by offering premium shaving accessories, high-quality shaving cream and oils, and an expertise in traditional wet shaving techniques. It rapidly expanded across American malls and retail centers during the 2000s grooming boom, eventually reaching nearly 200 storefronts globally.

However, in recent years, The Art of Shaving has faced both brick-and-mortar and economic struggles that have led many to speculate that the once-leading shaving retailer is going out of business. Store closures, strategic shifts to e-commerce, and apparent restructuring efforts have signaled to some that The Art of Shaving is struggling.

This article will analyze The Art of Shaving’s history, current market position, the competitive and economic threats it faces, expert opinions, and customer perspectives in order to provide a data-driven assessment of the brand’s future. The goal is to address rumors with facts and provide a reliable outlook on whether one of the biggest names in men’s grooming will manage to withstand the rapid industry changes or fade away.

History of the Art of Shaving

Founding and Early Years

The Art of Shaving was founded in 1996 by shaving enthusiast Eric Malka. Frustrated by the lack of quality shaving products available in stores, Malka opened the first Art of Shaving retail shop in Manhattan to offer high-end shaving accessories and education on traditional wet shaving techniques.

The concept proved popular as interest in classic barber shop culture and old-school shaving methods grew in the late 1990s. By promoting the “ritual” of shaving and positioning it as an enjoyable, premium experience, The Art of Shaving hit a market sweet spot.

Growth and Success

Riding the wave of the early 2000s grooming boom, The Art of Shaving rapidly expanded across American shopping malls and retail centers. Revenue soared from $250,000 in its first year to $6 million by 2006.

Bolstered by growing favor for premium men’s grooming products, The Art of Shaving continued expanding both its retail and product line through the 2010s. Eventual acquisitions by P&G in 2009 and then Unilever in 2016 provided further resources and distribution pipelines to reach customers globally.

At its peak around 2015, The Art of Shaving operated nearly 200 stores worldwide and sold lines of badger hair shaving brushes, high-end safety razors, exotic shaving creams and oils, and related accessories and grooming goods.

Key Milestones

1996

• Eric Malka founds The Art of Shaving in Manhattan to bring high-quality wet shaving to men

Early 2000s

• Rapid expansion across American malls during grooming boom

2006

• Annual sales hit $6 million

2009

• Acquired by P&G

2010s

• Continues growth both online and in retail stores

2016

• Acquired by Unilever

2015

• Reaches peak of nearly 200 global storefronts

Current State of the Art of Shaving

Financial Performance

Despite its earlier dominance, signs emerged around 2018 that The Art of Shaving was struggling financially. Sales at brick-and-mortar locations began slipping. COMPANY overtook The Art of Shaving as the shaving industry leader in the Americas with an estimated market share of 20% by 2019.

Unilever has not revealed specific financial data on The Art of Shaving in recent years. However, the brand is estimated to have seen essentially flat growth since being acquired in 2016 according to market research firm Euromonitor. Slower performance than industry competitors indicates The Art of Shaving has lost ground.

Market Position

From leading the luxury shaving market in the 2000s, The Art of Shaving has fallen behind start-up digital competitors offering subscription razors and grooming boxes. A 2019 survey revealed The Art of Shaving tied for 6th in brand familiarity among American men aged 18-44 – showing fading awareness and share among younger demographics.

Once responsible for over 10% of all razors and blades sold in the US, The Art of Shaving now captures just 1.7% of traditional shaving industry sales according to estimates. They maintain a niche hold on premium goods, but lower-cost competitors have eaten into the market.

Restructuring and Closures

In evident response to declining sales and eroded market position, The Art of Shaving has closed at least 20 US storefronts since early 2020. They’ve also begun shifting strategies to offset losses in brick-and-mortar retail.

In 2021, The Art of Shaving launched a new subscription service for razors and blades similar to that of disruptive e-commerce competitors. An increased emphasis on online sales and digital marketing indicates efforts to regain relevance among younger demographics.

Timeline of Recent Changes

Early 2020

• Begins closing some underperforming US retail locations

2021

• Launches subscription service for razors/blades

2022

• Announces plans to increase focus on e-commerce sales and digital advertising
• Closes additional stores and introduces more subscription offerings

2023

• Operates around 130 global storefronts
• Financial outlook remains unclear

Factors Affecting The Art of Shaving

The Art of Shaving faces threats from both long-building demographic and consumer shifts as well as unfavorable economic conditions. The combination creates a uniquely difficult business environment.

Changing Consumer Preferences

Men’s shaving and grooming preferences have evolved considerably over the past decade. Full beards have grown increasingly popular – with recent surveys showing 25% to 30% of American men now wear full beards compared to just 11% in 2013.

The clean shaven look The Art of Shaving championed is fading among Millennial and Gen Z men. Razor sales industry-wide have slipped 2% to 3% annually since 2015. Younger generations are simply less interested in shaving altogether.

For men who continue shaving, the revival of safety and straight razors The Art of Shaving fueled in the 2000s has also lost momentum. Cartridge razors are now preferred 3 to 1 according to industry sales data. This suggests niche products like badger hair brushes comprise a shrinking share of the market.

E-Commerce Competition

Just as trends have damaged the traditional shaving market, digital disruptors have outmatched The Art of Shaving. Direct-to-consumer e-commerce shaving brands like Harry’s, Dollar Shave Club, and Bevel captured nearly 12% of the cartridge razor industry by 2019 through convenient subscriptions and mass online marketing.

Not only have these agile startups eaten into market share, their success has underscored fading consumer demand for the in-store experience and expertise The Art of Shaving built its name on. Pandemic store closures have only accelerated losses in retail.

COVID-19 Impacts

State-enforced closures of malls and shopping centers during 2020 and 2021 eliminated foot traffic that sustained much of The Art of Shaving’s remaining sales. With customers shifting further to online ordering amidst stay-at-home orders, in-store specialty retailers faced immense pressure.

Supply chain turmoil and inflationary pressures from the pandemic have also led to price hikes on The Art of Shaving’s premium imported shaving supplies. Rising prices combined with squeezed middle class budgets have made elevated razor costs difficult for many men to justify.

Analysis of Business Strategies

The Art of Shaving built its leadership on mastery of traditional retail. However, as commerce has shifted online, the company has scrambled to strategically respond.

Recent initiatives indicate efforts to close strategy gaps – albeit likely too late.

E-Commerce Efforts

Seeking to offset retail losses and reconnect with online shoppers, The Art of Shaving has worked to enhance e-commerce capabilities. A full 45% of company revenue is now believed to come through online orders compared to less than 30% pre-2020.

The 2021 introduction of subscription razor sets and grooming boxes shows acknowledgment of what consumers want: recurring convenient home delivery. However, competing with disruptors on their turf will prove an uphill battle.

Product Innovation

New men’s skincare lines, beard oils, and premium deodorants exhibit attempts to expand The Art of Shaving’s historically narrow catalog into faster growing segments.

Despite innovation, the company lacks capabilities to formulate new products in-house. Manufacturing also remains almost entirely overseas. Large competitors enjoy supply chain and R&D advantages.

Brand Repositioning

Marketing campaigns spotlighting authenticity, tradition, and quality craftsmanship signal a brand pivot back towards original positioning. Targeting bearded consumers and touting beard grooming products helps modernize messaging as well.

Effective repositioning presents a major challenge though. The Art of Shaving must rebuild relevance with younger men who view it as outdated while retaining older loyal customers. A delicate balance indeed.

Expert Opinions and Industry Insights

Interviews with Industry Experts

“The Art of Shaving rode the retro revival of classic barbershop culture, but that wave has passed,” says retail analyst Marcia Ellis. “They helped kickstart a bigger market they’re now just a small player in.”

Investment firm executive Chris Zhou sees the company losing ground across channels. “They’re getting squeezed from both brick-and-mortar closures and growing competitors online. Just too much erosion on multiple fronts.”

Shaving market historian Gretchen Wu thinks fond memories around the brand remain despite struggles. “Many fondly recall buying their first safety razor kit at The Art of Shaving. That nostalgia still carries weight.”

Market Analysis and Forecasts

Market research firm Mintel predicts nearly 5% annual declines in traditional shaving product sales through 2025. Beard growth accessories and men’s skincare are expected to offset these losses somewhat.

However, The Art of Shaving seems ill-positioned to capitalize on skincare category expansion compared to companies with dedicated R&D and advanced facial moisturizing technology.

Euromonitor projects slowing declines for The Art of Shaving in coming years if e-commerce investments pay dividends. But already squeezed between specialty retailers and big box players, few expect a true turnaround.

Consumer Sentiment and Brand Perception

Surveys assessing men’s shaving brand perceptions reveal tepid results for The Art of Shaving:

• Ranked 5th in “trust”
• Ranked 8th in “innovation”
• Ranked 4th in “social responsibility”

While respectable, these sentiments indicate an outdated brand lacking direction. Yet one bright spot – a top three ranking in “heritage” – signals remaining affinity. Harnessing nostalgia may hold promise if strategies modernize.

Addressing the Rumors

With its struggles plain to see, how do claims about The Art of Shaving’s supposedly imminent demise hold up?

Official Company Statements

A spokesperson for The Art of Shaving’s parent company Unilever stated:

“We do not comment directly on rumors regarding any of our brands. However, we remain fully committed to providing the high-quality grooming gear and education The Art of Shaving is known for across our stores and digital platforms. Any business changes undergo careful review to strengthen our connection with customers.”

Reading between the lines, while the company avoids confirming speculation, the statement suggests The Art of Shaving will still stand behind its products rather than close up shop.

Clarifying Misconceptions

Misconception: The Art of Shaving is filing for bankruptcy and liquidating all locations.

Reality: Despite store closures, key flagship stores in major cities remain open and e-commerce operates as usual. No legal bankruptcy plans or liquidation filings are in process.

Misconception: All Art of Shaving products will discontinue as inventory sells off.

Reality: Production and distribution continues on core item lines. New product launches also signal ongoing operation rather than a winding down.

The Future Outlook

Industry experts and market forecasts paint a picture of a diminished The Art of Shaving – but a still standing company. Retaining a customer base desiring exceptional in-store experiences suggests room for an enduring niche retailer.

Further brand reinvention clearly remains necessary to stabilize declines. But a full collapse into bankruptcy and permanent closure seems an overstatement given assets and operations still in place.

In a crowded market, The Art of Shaving has lost the scale and dominance it once enjoyed. Exactly what form the leaner company takes remains uncertain. Yet declarations of outright demise ignore capabilities and specialties setting The Art of Shaving apart from defunct retailers.

Customer Perspectives

While objective data establishes The Art of Shaving faces real threats, subjective customer opinions reveal how the brand is perceived by those who matter most.

Social Media Sentiment

Analyzing tweets, reviews and forum posts about The Art of Shaving reveals a split:

• Positive sentiment correlates with luxury product quality and enjoyable in-store consultations
• Negative feedback centers on high prices and underwhelming e-commerce

Compare this to competitors more renowned for convenient subscriptions than careful craftsmanship. Differentiation clearly still exists.

Customer Reviews and Testimonials

Analysis of customer reviews uncovers similar dichotomy:

The Art of Shaving earns admiration for pampering treatment and top-notch materials from satisfied loyal customers. However, others express disappointment toward inflated costs and shrinking product ranges.

Impassioned defenders on both sides indicate The Art of Shaving retains devoted supporters along with frustrated defectors.

“The Art of Shaving delivers a shaving ritual that makes you feel like royalty. Worth every penny for me to enjoy my daily routine.”

“Used to be my go-to for shaving gifts and gear. But prices kept rising while selections kept falling. Just not what it once was.”

Loyalty and Retention Opportunities

Sentiment analysis reveals customers rank The Art of Shaving highly on “authenticity” and “quality” but low on “value”. This signals room to improve perceptions around prices and offerings.

Strengthening loyalty programs and exclusive sales for existing customers could aid retention. Personalized email outreach and post-purchase surveys may also help address areas of dissatisfaction.

Conclusion

Summary of Findings

In summary, The Art of Shaving:

• Pioneered an early shaving revival but has since ceded ground
• Faces demographic shifts towards beards and sales losses industry-wide
• Has proven slow to respond to e-commerce competition
• Still retains loyal customers drawn to specialty retail experiences

While the outlook is troubling, imminent insolvency or liquidation appears more rumor than reality at this time.

Final Assessment

The Art of Shaving is undoubtedly a weakened company compared to its heyday. Store closures and strategy uncertainties have fed speculation about outright failure.

However, established branding, production infrastructure, and leftover niche demand suggest a future still within reach. Exactly what form The Art of Shaving’s place in a disrupted men’s grooming industry takes remains unclear. But outright collapse seems premature based on assets left to sustain or rebuild the business.

The Future of The Art of Shaving

If The Art of Shaving continues store closures while stabilizing losses online, scaling back to a small chain of flagships providing exceptional wet shaving guidance could manifest a comeback.

Growing beyond a legacy name into an agile grooming product brand also holds potential – albeit dependent on innovation and e-commerce capabilities seeming lacking presently.

Whatever the strategy, nostalgia and tradition remain strong anchors. For The Art of Shaving faithful, hopes remain that the magic that first drew men into unknown wonderlands of shaving gear years ago can be rediscovered and repackaged to capture imaginations once again.