Buff City Soap Aims to Open 1,000 stores in the Next Five Years

Original Article: D Magazine - June 02, 2020

As recently profiled in D Magazine, journalist Sofia Krusmark did a stellar job mapping out the sudsational playbook that handmade soap retailer, Buff City Soap, plans to implement in order to continue their upward trajectory within the personal care products space.

We’ve taken a stab at summarizing Krusmark’s article below but encourage our readers to hit the link at the top of the page and read the original write up for yourself!

Moving along now: Memphis-based soap company, Buff City Soap began in a firefighter’s garage and is now setting its sights on transforming its $20 million business into a billion-dollar powerhouse, all from its new base in North Texas.

Fueled by a wave of private equity capital, Buff City Soap has relocated its headquarters to Uptown and brought on a star-studded executive team to elevate the brand. Leading the charge is Justin Delaney, who famously sold his tuxedo rental startup to Men’s Warehouse founder George Zimmer in 2017 for $25 million.

So, what brings together this dynamic C-suite team, whose expertise spans everything from smoothies to medical technology? 

“We’re bullish on retail,” Delaney asserts.

In the next five years, Buff City Soap plans to ramp up its retail footprint from 35 stores across 11 states to a staggering 1,000 locations.

Founded in 2013, the company’s origins trace back to former firefighter-paramedic Brad Kellum, who discovered that the commercial soaps he used were filled with cow fat and other synthetic ingredients. Alongside his girlfriend, co-founder Jennifer Ziemianin, a registered nurse, they began crafting plant-based alternatives in their garage. Their initial soap bars evolved into a diverse range of products, including plant-based body butters, shower oils, bath bombs, a facial care line, men’s grooming items, plant-based laundry detergent, pet care products and various bath accessories.

After initially selling their products directly to consumers online and at a farmers’ market, the couple launched their first brick-and-mortar store in 2014. In that inaugural year, they generated $75,000 in sales, as reported by the Memphis Commercial Appeal. Fast forward to last year, and sales soared past $20 million, prompting Kellum to bring in Delaney, allowing him to focus on developing new products.

Delaney expresses confidence in the leadership team’s ambition to elevate Buff City Soap from a multimillion-dollar business to a billion-dollar brand. “It seems realistic for us,” he states. “To achieve a big goal, you first need the right team and the right resources, and that’s our vision. It doesn’t feel like an unattainable dream.”

The move to the DFW area, with its advantages in air travel and access to talent, is a key component of the company’s growth strategy. Additional elements include support from Dallas-based private equity firms Guideboat Capital and Crux Capital, franchising prospects, and a rebranding initiative that emphasizes the experiential aspects of their storefronts.

“I’m planning to open a lot of stores and create fantastic experiences for customers,” Delaney said of the business plan. “It’s a straightforward approach, but that’s really the essence of it.”

In a challenging retail landscape marked by bankruptcies and store closures, Delaney asserts that Buff City Soap offers a unique experience. “That’s why we’re placing our bets,” he says, emphasizing the plan to open numerous stores and focus on building customer relationships rather than just transactions.

Experts advise retailers to innovate in order to attract and retain customers, with “experience-driven” brands growing at 19 percent annually, according to a Forrester and Adobe report. North Texas is embracing this trend, seen in attractions like Kidzania and the Crayola Experience. For Buff City Soap, their strategy includes allowing customers to watch products being made or create their own soap bars in-store.

According to the Daily Memphian, Buff City Soap uses 4.2 tons of shea butter annually and produced over 250,000 gallons of its proprietary blend in 2019, all made fresh daily in stores.

Delaney emphasizes the importance of engaging customers in the process, from making bath bombs to helping name products. “It’s common to receive hundreds of comments on our social media posts,” he notes.

Chad Brizendine, the new CMO and former marketing executive at Procter & Gamble, highlights the distinct experience Buff City offers compared to big-box retailers, where shoppers often find long ingredient lists they can’t pronounce. “It’s about witnessing the soap being made right before your eyes,” he explains, referring to the “magic” that attracted him to the company.

To ensure a consistent customer experience across all locations, Brizendine notes that the marketing team is simplifying logos, branding, and messaging. “We want every customer to have the same experience, whether they’re in Louisville, Kentucky, or right here,” he adds.