Post-HBC, Ottawa’s Hair Republic tries new growth method

More than a year after it had to vacate two Hudson’s Bay locations, Ottawa-founded Hair Republic is consolidating its local operations and adopting a new strategy to grow its brand beyond the nation’s capital.

More than a year after it had to vacate two Hudson’s Bay locations, Ottawa-founded Hair Republic is consolidating its local operations and adopting a new strategy to grow its brand beyond the nation’s capital.  This month, the company announced it would close its ByWard Market salon and move all its local team members to its flagship location on Bank Street. Despite the closure, the company is continuing to grow by partnering with salon owners in the Greater Toronto Area to convert their stores into Hair Republic locations.  In a conversation with OBJ on Friday, co-owner John Nguyen said the process has already begun. The company partnered with a salon in Etobicoke earlier this year and more recently converted a former Toni & Guy franchise location in downtown Toronto. Another partnership is planned for later this year in Burlington.  “We knew we couldn’t go the traditional route because there is a negative stigma with the term franchising in our sector,” he said. “So we had to do something different. We want to work with existing operators and leverage our resources and structure to improve their facilities and operations.” According to Nguyen, the new approach is the result of a tumultuous year-and-a-half, which he said forced the company to rethink its growth strategy.  In the spring of 2025, the company took a hit when all but six Hudson’s Bay stores across Canada began liquidation efforts, forcing out all in-store clients. At the time, Hair Republic was operating salons in two HBC locations: the Rideau Centre in Ottawa and Sherway Gardens in Toronto. Though Nguyen said there was a brief period when it seemed a new HBC owner might take over, the deal ultimately fell apart and by fall 2025 both of Hair Republic’s in-store salons had shut down.  “We were taking a beating from HBC and the downfall of closing two stores within one week was hard, mentally and financially,” he said. “When we open stores that are corporate-owned, there’s a lot of capital being deployed on our end. So it was challenging when we were not able to recoup our initial investments, let alone all the social equity that we kind of put into those two stores.” With its new model, Nguyen said the brand gets to grow while taking on less risk. Rather than adopting a franchise approach, he said Hair Republic is forming partnerships with existing salons through joint venture and management agreements.  He added that with economic constraints and an industry-wide labour shortage putting pressure on owners, there’s significant opportunity.  “Given that we are in an economic downturn still, there are a lot of operators that are losing ground and not renewing their leases,” he said. “They’re looking for an exit strategy. They need help.” At the same time, stylists who previously struck out on their own are increasingly returning to salons, he said. While most avoid corporate franchises, Nguyen said his new model provides a more flexible middle ground that could help stores address labour shortages.  “Even though we’re not majority owners of these stores, we are partners and it’s almost like a franchise where the franchisee still operates its own salon,” he said.  “We always wanted to grow the business and the brand across Canada. We have 15 years of experience and expertise, so why don't we put that to work and share that knowledge with our community in exchange for a partnership agreement? So far we're less stressed because it's not really our own capital. We're going in as partners and building something together."

While Hair Republic expands in Toronto, Nguyen said it's also making adjustments in Ottawa to keep up with the changing market and demands.  This month, the company announced it would close its location at 7 Clarence St. in the ByWard Market, leaving it with only one local salon, its flagship location at 1093 Bank St. in the Glebe. Nguyen said that decision was prompted by ongoing challenges in the area, such as a decline in foot traffic and increased safety concerns.  "We came into (the ByWard Market) in 2019, securing a lease and paying premium rates for the downtown core,” said Nguyen. “I just feel like we're not getting the same value as we thought we would. I can't wait another five years to find out whether ByWard will come back to its standards. I cannot do that.” Though the move shrinks its presence in Ottawa, Nguyen said the company would like to continue to grow locally in the future. With more clients seeking salons closer to home, he said it's looking at locations outside the downtown core, including west-end neighbourhoods such as Westboro and Kanata. "In entrepreneurship, there's no guarantee. You kind of have to figure things out as you go. As you jump off the plane, you have to figure out how to deploy the parachute,” he said. “But seeing that we can prevail from all this and keep our heads up and look for ways to continue to grow despite all these challenges — I hope it’s inspiring enough for anybody."