XWELL Advances Expansion Plan Outside the Airport with Three New Naples Wax and Skin Care Locations
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Insights
The expansion of XWELL, Inc. into additional locations for Naples Wax Center is a strategic move that capitalizes on the growing demand for esthetic services. By entering the Tampa market and increasing their footprint in Naples and Cape Coral, XWELL is positioning itself to capture a larger market share in the Southeastern United States, which is known for its robust growth and affluent demographics. This expansion could potentially increase the company's retail revenue and diversify its income streams beyond its traditional airport locations.
These developments are indicative of XWELL's commitment to growth and may be seen as a positive signal to investors. The company's strategy to establish a presence in both new and established markets suggests a targeted approach to scaling operations while potentially benefiting from economies of scale. However, the actual impact on XWELL's financial performance will depend on the successful execution of these plans and the market's reception of the new locations.
Investors should closely monitor the capital expenditures associated with the expansion of Naples Wax Center locations. While the opening of new centers is likely to drive top-line growth, the initial investment and ongoing operational costs could weigh on short-term profitability. The decision to announce specifics regarding new leases and respective grand opening details at a later date suggests that the financial implications are still being finalized.
Long-term, if XWELL effectively leverages these new locations to enhance its brand and customer base, it could see improved margins from increased sales volume and brand loyalty. It's crucial to assess how these expansions align with XWELL's overall financial strategy and whether they will contribute to sustainable growth. The timing of the openings, with two locations set for the second half of 2024 and one in the third quarter, will be a factor in the fiscal year's performance and should be factored into any projections and valuations.
The choice to expand beyond airport locations and into high-traffic areas like New York's Penn Station and the fast-growing Tampa region reflects a strategic pivot for XWELL. By situating itself in these areas, XWELL is likely to benefit from increased visibility and accessibility, which are crucial factors for success in the retail and service industry. The introduction of a tech-forward, labor-lite XpresSpa in Penn Station also suggests an innovative approach to service delivery, which could set a new standard within the wellness sector.
However, the retail and service industry is highly competitive and the success of new locations will depend on XWELL's ability to differentiate itself from other esthetic service providers. The company's focus on the 'Naples Wax and Skin Care experience' indicates an emphasis on brand experience, which can be a significant differentiator. The ability to replicate and maintain the quality of this experience across new locations will be critical to customer retention and brand loyalty.
NEW YORK, Feb. 14, 2024 (GLOBE NEWSWIRE) -- XWELL, Inc. (Nasdaq: XWEL) ("XWELL" or the "Company"), an authority in wellness solutions for people on the go, today announced that it has signed leases to open three additional Naples Wax Center® locations this year. The new locations will strengthen the brand’s esthetic service foundation and enhance its retail and skin care offerings as a growing one-stop esthetic and beauty authority. Additionally, the Company intends to grow the Naples Wax Center portfolio by 5-7 additional locations in the Southeastern part of the United States during the next 12 months.
Two of the new locations announced today will extend Naples Wax Center’s footprint in the greater Naples and Cape Coral markets and are expected to open in the second half of 2024. Additionally, a third location is scheduled to open in Tampa during the third quarter of 2024, strategically expanding Naples Wax Center’s presence in one of the fastest growing regions in the United States.
“We’re excited to strengthen Naples Wax Center’s already strong footprint in Southwest Florida while also extending our presence to Tampa for the first time,” commented XWELL Chief Executive Officer, Scott Milford. “These plans underscore our focus on smart expansion and increasing retail revenue beyond our airport locations. To further accelerate XWELL’s growth, we plan to announce additional Naples Wax Center’s in both new and established markets in the near future with a goal of bringing the Naples Wax and Skin Care experience to customers all over.”
The upcoming openings will bring Naples Wax Center’s retail presence to at least six locations by the end of 2024. Specifics regarding new leases and respective grand opening details will be disclosed at a later date.
The introduction of these new locations aligns with XWELL’s focus on accelerating out-of-airport portfolio growth. This includes a recently announced lease agreement to open a new XpresSpa location in New York’s Penn Station during the first quarter of 2024. Situated in the heart of New York’s newly revitalized PENN DISTRICT, the new tech-forward, labor-lite out-of-airport XpresSpa will serve commuters, neighborhood locals, and tourists with wellness-focused retail, autonomous massage, and nail care services.
For more information and to stay updated on XWELL's expansion journey, please visit https://www.xwell.com/.
About XWELL, Inc.
XWELL, Inc. (Nasdaq: XWEL) is a leading global wellness holding company operating multiple brands: XpresSpa®, Treat™, Naples Wax Center®, XpresCheck® and HyperPointe™.
- XpresSpa and its Treat brand are leading retailers of wellness services and related products, with 34 locations in 15 airports globally.
- Naples Wax Center is a group of upscale skin care boutiques, with three locations currently operating.
- XpresCheck is a provider of screening and diagnostic testing in partnership with the CDC and Concentric by Ginkgo, conducting bio-surveillance monitoring in its airport locations to identify new SARS-CoV2 variants of interest and concern as well as other pathogens entering the country from across the world.
- HyperPointe is a leading digital healthcare and data analytics relationship company serving the global healthcare industry.
Forward-Looking Statements
This press release may contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These include statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forward-looking statements relating to expectations about future results or events, including the Company’s current plans and expectations relating to the business and operations and future store openings for Naples Wax Center, are based upon information available to XWELL as of today's date and are not guarantees of the future performance of the Company, and actual results may vary materially from the results and expectations discussed. Additional information concerning these and other risks is contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and other Securities and Exchange Commission filings. All subsequent written and oral forward-looking statements concerning XWELL, or other matters and attributable to XWELL or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. XWELL does not undertake any obligation to publicly update any of these forward-looking statements to reflect events or circumstances that may arise after the date hereof.
FAQ
How many additional Naples Wax Center locations does XWELL plan to open in 2024?
Where will the new Naples Wax Center locations be located?
What is XWELL's goal for expanding the Naples Wax Center portfolio in the next 12 months?
What other expansion plans does XWELL have?
Where will the new XpresSpa location be opened?
