Beauty Depot: A Family Business Transforming the Beauty Industry in Guatemala

by Cecile Ney

June 13, 2024
Beauty Depot: A Family Business Transforming the Beauty Industry in Guatemala

Beauty Depot, a Guatemalan family-owned business, has made a name for itself as the largest chain of beauty salons in the country. Founded in December 1999, Beauty Depot has grown from a single store to an expansive network of 29 outlets located in major shopping centers throughout Guatemala. The company offers an extensive range of professional beauty products and services, catering to the diverse needs of its customers.

The company’s roots trace back to its founders’ experience in beauty product distribution. They envisioned a salon offering an extensive product range, leading to the creation of Beauty Depot. This innovative model combined salon services with retail beauty products, establishing the company as a leader in Guatemala’s beauty sector.

beauty depot

Navigating the Complexities of Rapid Expansion

With growth came complexity, and as Beauty Depot expanded, managing the profitability and performance of its growing product range became complex. With multiple stores and brands, there was a need for clearer visibility into profitability by category, product, and store to allocate resources effectively and identify future successes.

General Manager Stefanie Lemcke and her team in marketing, IT, reporting, purchasing, and accounting aimed to streamline operations and focus on profitability to maintain their competitive edge.

Transforming Operations Through the Bpeace Pradera Impulsa Program

In 2023, Beauty Depot joined the Pradera Impulsa program, sponsored by CMI in Guatemala, to address expansion challenges and scale effectively. Partnered with marketing and sales expert Yvette Franco, Beauty Depot developed a new sales strategy and product profitability scoring system.

Yvette collaborated closely with the Beauty Depot team to develop a comprehensive sales strategy and a scoring system to define product profitability. Together, they focused on reducing the number of SKUs (Stock Keeping Units), understanding the profitability contribution of each item sold, and refining the product mix to ensure that the company’s efforts were concentrated on the most profitable lines.

The initiative also included the development of a recognition plan for the sales team, aligned with key performance indicators (KPIs). The objective was clear: to streamline the product offerings, focus marketing and promotional efforts on the most profitable products, and ensure that the Beauty Depot brand remained on-trend while optimizing profitability. This approach also involved training employees to prioritize and promote the most profitable products, including Beauty Depot’s private labels.

Driving Profitability: The Impact of Focused Strategic Interventions

The strategic interventions led to remarkable outcomes for Beauty Depot. Revenue increased by 16%, and profits doubled. The company also expanded its workforce, adding seven new full-time jobs, bringing the total to 126 employees—110 of whom are women.

The impact of the program was not just financial but also organizational. As General Manager Stefanie Lemcke noted,

“Yvette guided us in getting organized and transformed our approach to our work. She clarified the crucial decision-making process for introducing or removing products from our inventory. Although it was a significant amount of work, it was immensely satisfying.”

For Yvette Franco, the experience was equally rewarding.

“I supported Beauty Depot to enhance its profitability, and it brought me immense personal satisfaction. Seeing the tangible impact of our collaborative efforts was incredibly rewarding, knowing it will shape their future operations,” she said.

Yvette’s contribution exemplifies the power of expert guidance in helping small businesses navigate challenges and achieve sustainable growth.

The Road Ahead: Sustaining Success in Guatemala’s Beauty Industry

By embracing the challenges that come with expansion, Beauty Depot’s journey illustrates the resilience of small businesses in overcoming expansion challenges. With the Bpeace Pradera Impulsa program’s support, the company refined its operations and is well-positioned for continued success in Guatemala’s competitive beauty industry.

Share this post
Cecile Ney
Cecile Ney
Impact Manager at Bpeace

Related articles

Weaving Dreams into Reality: Marisol’s Mission to Empower Salvadoran Artisans
March 6, 2025

Weaving Dreams into Reality: Marisol’s Mission to Empower Salvadoran Artisans

February 20, 2025

To Whom Much Is Given, Much Is Required: The Responsibility and Impact of Black Entrepreneurship

Unleashing Leadership Potential: Leaders Circle Program
December 17, 2024

Unleashing Leadership Potential: Leaders Circle Program

November 12, 2024

INSIGHT BRIEF The Double Shift: Navigating Leadership of Food Businesses and Family in Central America

Excellent Seams’ Journey to the Top of Custom Children’s Clothing and Creation of 77 New Jobs
August 20, 2024

Excellent Seams’ Journey to the Top of Custom Children’s Clothing and Creation of 77 New Jobs

Expanding Capital to Diverse Businesses: A Proven Model for Economic Growth
June 28, 2024

Expanding Capital to Diverse Businesses: A Proven Model for Economic Growth

TestRevitalizing D’Marie: Bpeace’s Impact on a Family Business
June 21, 2024

Revitalizing D’Marie: Bpeace’s Impact on a Family Business

The Role of Strategy and Innovation in Maypro’s 74% Revenue Growth
June 13, 2024

The Role of Strategy and Innovation in Maypro’s 74% Revenue Growth

Empowering Women Forward: Mentorship Insights from Liliana Goncalvez
June 12, 2024

Empowering Women Forward: Mentorship Insights from Liliana Goncalvez

Vertex Studio’s Path to Global Success: How Bpeace Facilitated Their Expansion
June 12, 2024

Vertex Studio’s Path to Global Success: How Bpeace Facilitated Their Expansion

Public’s Journey to Growth: How Strategic Changes Sparked Success
June 12, 2024

Public’s Journey to Growth: How Strategic Changes Sparked Success

Fast Cargo’s Strategic Transformation: Streamlining Processes and Empowering People
June 12, 2024

Fast Cargo’s Strategic Transformation: Streamlining Processes and Empowering People

Industrias Laford: From Local Success to Regional Powerhouse
June 11, 2024

Industrias Laford: From Local Success to Regional Powerhouse

Prescription for Success:Grupo JOMI’s Path to International Growth
May 11, 2024

Prescription for Success:Grupo JOMI’s Path to International Growth

Turning the Tide: Hotel Michanti’s Journey to Sustainable Profitability
April 29, 2024

Turning the Tide: Hotel Michanti’s Journey to Sustainable Profitability

Atami Escape Resort: A Hub of Local Impact and Growth
April 8, 2024

Atami Escape Resort: A Hub of Local Impact and Growth

March 25, 2024

EmpowerHer: A Multifaceted Journey to Women’s Professional and Personal Growth

Paving the Way: The Critical Role of Supporting Women in Business
March 20, 2024

Paving the Way: The Critical Role of Supporting Women in Business

Doña Laura Restaurant’s Recipe to Transform Lives Through Food
March 20, 2024

Doña Laura Restaurant’s Recipe to Transform Lives Through Food

Leticia Escobar (middle)
March 8, 2024

Defying Gravity: The Unyielding Spirit of a Barrier-Breaking Woman

Driving Positive Change: Pradera Impulsa’s Transformative Partnership
December 10, 2023

Driving Positive Change: Pradera Impulsa’s Transformative Partnership

December 6, 2023

Building Skills and Confidence: Red’s Beer Garden Gets a Post-Pandemic Boost from Its Bpeace Alliance

Dream Builders: Making Dreams a Reality Through Affordable Childcare
November 15, 2023

Dream Builders: Making Dreams a Reality Through Affordable Childcare

Empowering Employees, Driving Growth: Especialidades Centro Veterinario’s Winning Strategy
August 23, 2023

Empowering Employees, Driving Growth: Especialidades Centro Veterinario’s Winning Strategy

SGS Contracting: A Minority-Owned Business in North Carolina Builds on Its Solid Foundation
August 11, 2023

SGS Contracting: A Minority-Owned Business in North Carolina Builds on Its Solid Foundation

March 8, 2023

Women’s History Month: Empowering Women in Business with Bpeace