How business, doctors and journalists prey on your food anxieties I
How business, doctors and journalists prey on your food anxieties I
How business, doctors and journalists prey on your food anxieties I
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sessed with eiboscing his wasiato the<br />
5385-milli<strong>on</strong>-a-vcar (at rctaill electric<br />
shaver market . This is a <str<strong>on</strong>g>business</str<strong>on</strong>g><br />
the Wahls ha~e l<strong>on</strong>g eved . "When I<br />
Survival of the biggest<br />
was 14 [in 19411, mv father shoued<br />
me an electric shacer he had partly put Hr-Lo ACTO)dOTi': F., I\'( : . looked<br />
together," sa}°s Wahl . "But he said like a uinner %i hen Fokr, ::s risited the<br />
ever•<strong>on</strong>e was coining out w ith <strong>on</strong>e, so auto parts <str<strong>on</strong>g>and</str<strong>on</strong>g> accessories retailer<br />
he didn't go ahead «ith it ."<br />
three 1cars ago (FotusFS, Au~q. 3,<br />
Wahl Clipper's neNc sha~ er came <strong>on</strong> 1992) . Based in Houst<strong>on</strong>, Hi-Lo's<br />
the market at the end of 1993 . Called 122 stores in Texas <str<strong>on</strong>g>and</str<strong>on</strong>g> Louisiana<br />
the Custom Sha~e S~-stem, it comes generated S156 miili<strong>on</strong> of sales <str<strong>on</strong>g>and</str<strong>on</strong>g><br />
with three different foils, die pertorated<br />
metal coNer above the cutting NYS~ stock later hit a high of 21?is in<br />
55 .7 milli<strong>on</strong> in earnings in 1991 ; the<br />
blades . The more holes in the foil, the December of 1992 .<br />
closer the shave . With three foils to But that mas before b[g competitorsAutoZ<strong>on</strong>e,<br />
Pep Boy°s <str<strong>on</strong>g>and</str<strong>on</strong>g> Chief<br />
choose from, the user can customizc<br />
his shme . "This [sharer] is just like Auto Pans rapidh esp<str<strong>on</strong>g>and</str<strong>on</strong>g>ed into<br />
the hair clipper," says Wahl . "It just Hi-Lo's ten:t<strong>on</strong> . Am<strong>on</strong>g them these<br />
cuts the hair a lot cioser ."<br />
interlopers Ira e opened in the past<br />
In tackling the electric shax er market,<br />
Wahl is either foolhardv or sen= Houst<strong>on</strong>, Hi-Lo's biggest ntarker .<br />
couple of} ears about 20 ne%~ stores in<br />
smart . The market is dominated br Hi-Lo tried co'ght back byr exn<str<strong>on</strong>g>and</str<strong>on</strong>g>ing<br />
into Caiitbrnia, but that hailed to<br />
giant Philips' Norelco br<str<strong>on</strong>g>and</str<strong>on</strong>g>, with<br />
half the <str<strong>on</strong>g>business</str<strong>on</strong>g>, <str<strong>on</strong>g>and</str<strong>on</strong>g> Remingt<strong>on</strong> help earnings : On sales of S60 milli<strong>on</strong><br />
Products Inc ., with 25"/a . Fighting for for the first quarter of 1995, Hi-Lo<br />
the rcmainder are companies like Gillette<br />
Co .'s Braun, Panas<strong>on</strong>ic <str<strong>on</strong>g>and</str<strong>on</strong>g> been trading around 11 fur t'ne past<br />
earned just 5700 .000 . The stock'nas<br />
C<strong>on</strong>air . Tl:ec probabh• spend S40 nvo Vears .<br />
milli<strong>on</strong> to S50 milli<strong>on</strong> combined annualle<br />
to advertise their sha% ers . Young sa vs the cotapamy had nco<br />
Hi-Lo ChiefExecuti%, _%4ichael<br />
"Y ou r success or failure is not based<br />
<strong>on</strong> how much aou spend <strong>on</strong> rv," ?<br />
declares lVahl, "but ho«\\ell sou 3<br />
spend it ." When a reporter savs he `<br />
hasn't seen a.n ad for the Wahl shaeers,<br />
he shoots back : "You lead a sheltered<br />
life . Haven't vou ecer seen our'Dancing<br />
Mustache' Ts' ads?"<br />
I f the shaver bo mbs [Y'ahl «°<strong>on</strong>'t go<br />
out of <str<strong>on</strong>g>business</str<strong>on</strong>g> . Besides its cliopers far<br />
humans, Wahl makes electric clippers<br />
for animals . It also makes small power<br />
roois, such as drills for hobbyints . But<br />
Jack, Wahl savs the companl•'s future<br />
lies in electric shavers : "This is the<br />
product die next generati<strong>on</strong> of Wahl<br />
Clipper people will end up selling ."<br />
The next generati<strong>on</strong>i That's Jack's<br />
s<strong>on</strong> Gregory . 44, the compam's chief<br />
operating ot}icer, <str<strong>on</strong>g>and</str<strong>on</strong>g> Gre~11<strong>on</strong>1's<br />
vounger brother Mark, \eho runs the<br />
animal products divisi<strong>on</strong> . Greg sars<br />
he isn't zs Itot <strong>on</strong> the electric sha~er as<br />
his dad is, <str<strong>on</strong>g>and</str<strong>on</strong>g> wnuld prefer to push<br />
harder <strong>on</strong> small electric toots instead .<br />
"But when lather savs jump," he saes,<br />
"I jump ." After ill, if Dad hadn't<br />
jumped into c<strong>on</strong>sumer products 18 C :`,ef's David Esen,berg (IeY) <str<strong>on</strong>g>and</str<strong>on</strong>g> Ffi-Lo's Michae' Yor :ng<br />
cears ago, there :night not h ;tk e been "Get real, real big real fast or sell ."<br />
jobs for Greg <str<strong>on</strong>g>and</str<strong>on</strong>g> %lark todav. M<br />
choiees. "Get real, rcal big real Past<br />
or se9 ." Young chose the latter . Ou<br />
June 1 Hi-Lo announced it \\ill be<br />
acquired by D .illas-based rival Chief<br />
Auro Parts Inc . for about S121 milliorn<br />
in cash, S I 1 a siiare . The deal «'ill<br />
make Chief thc nati<strong>on</strong>'s sec<strong>on</strong>dargest<br />
auto parts chain i aher Auto-<br />
Z<strong>on</strong>cj, «ith more than 700 stores ;<br />
some 50 neu- stores will open by the<br />
end oftttis s°ear. The 5-f00 milli<strong>on</strong><br />
f estimated sales) Chiefchain is owned<br />
bc Trust Co . of the T1'est .<br />
What does the future hoid for<br />
Young, 50, a formerArthtu Andersen<br />
partner %cho joined Hi-Lo ~chen<br />
Dill<strong>on</strong>, Read did a 573 milli<strong>on</strong> le%eraged<br />
buyrout ofthe chain in 1987?<br />
Posnnergcr,'.~e plans to stcp aside for<br />
Do i(i Eisenberg, chiefexecutire of<br />
Chiet; <str<strong>on</strong>g>and</str<strong>on</strong>g> so<strong>on</strong> start scouting for<br />
other bu}'out possibilities . "After<br />
~ou'l e run sometlting ~ourself ;" he<br />
sacs, "you want au oppor?unitv to<br />
c<strong>on</strong>tinue to do so ."<br />
-CAROL 15L W .iSd .ER<br />
Forbes 0 Au,ust 14, 1995 145<br />
http://legacy.library.ucsf.edu/tid/agf97d00/pdf