The past few years has seen an avalanche of spa openings at hotels.
Now spas are sprouting up at malls, with Irvine-based Solana MedSpas hoping there’s room across the country for cosmetic treatments such as hair removal and Botox injections.
Solana hopes to break out of the swell of spas with what it bills as a unique service: stem cell collection. Although the research is largely unproven, adult stem cells are seen by some as offering potential for treating heart disease, Parkinson’s disease, diabetes, Alzheimer’s disease and spinal cord injuries.
Solana has teamed with Irvine-based CalbaTech Inc. to collect stem cells at some of its spa locations. CalbaTech is a biotech company that’s part owner of Solana.
Solana draws stem cells from the abdomen for $3,000. The service is being offered in La Quinta and Pasadena. It plans to roll out stem cell collection to its 18 California locations, said Chief Executive John Buckingham, who co-developed a spa management program at the University of California, Irvine.
Local investor John Garcia, who had his stem cells banked 10 years ago the old-fashioned way,they were painfully extracted from bone marrow,put Solana and CalbaTech together, Buckingham said. Garcia is founding principal of Tustin-based Angel Strategies LLC, which has invested in Solana.
Solana said it expects to have 38 spas open by the end of June and about 50 by the end of 2006.
There is a handful in Orange County, including ones in San Clemente, Anaheim Hills and Rancho Santa Margarita.
Solana, which was founded in 2003, is using a quasi-franchise model to grow. To open a Solana spa you need to pay an $80,000 management consulting fee, invest a minimum of $400,000 in the store and have $300,000 in “liquid” capital.
Solana said its business differs from a typical franchise-based one because it collects a 6% per month fee on gross revenue. The spas typically cost about $500,000 to open. Locations are about 1,500 square feet.
The owner gets exclusive rights to a territory for 15 years, training and help in financing, advertising, hiring and finding real estate. Owners can name and design their stores.
Tom Welp, chief executive of MSW Medical Corp. in Tustin, his wife and two other couples own Professional Skin Concepts MedSpa in Rancho Santa Margarita. Welp, also a physician assistant, said he wanted to have his own business. He does some of the procedures himself.
The spa has been open for about four months and is expected to break even in about six to nine months, Welp said.
Buckingham said an injection of Botox goes for about $500. Expenses are about $40,000 per month, he said.
Spas are looking to grow by offering more services, such as hair removal, to men. Buckingham, for one, has had a chemical-grade facial.
Spectrum Starts
New York-based A & #233;ropostale Inc., a casual clothing and accessories store geared to the 11- to 18-year-old set, is coming to the Irvine Spectrum Center this year.
It has about 650 stores, with another at Westfield MainPlace in Santa Ana.
Also set to open at the Spectrum is Naartjie (pronounced Narchee), which sells colorful South African-designed clothes for children.
The Burlingame-based retailer has been scouting the OC area. It also has stores at the Shops at Mission Viejo and the Brea Mall.
More Kids Duds
The Children’s Place, based in New Jersey, is set to open its 70th store in California this month.
The clothing chain has picked Five Points Plaza in Huntington Beach for the store.
This will be the retailer’s seventh store in OC. Others are at Fashion Island, Westminster Mall and Laguna Hills Mall.
Auto Report
Look for Japanese and Korean automakers to grow sales in OC this year, with European and the Big Three automakers declining.
That’s according to the fourth-quarter auto wrap-up from the OC Automobile Dealers Association. The report projects European auto sales to fall 3.5% this year, with the Big Three off 4.3%. Korean automakers are seen rising 1.7% with Japan posting a 0.5% gain.
Hot brands in the fourth quarter included Toyota, which grew market share 2.8% from the third quarter, Lexus, up 1.3%, BMW, up 0.7% and Mercedes, up 0.5%.
Laggards included Ford, down 2.4%, Chevrolet, off 2.2%, and Dodge, down 0.4%.
Luxury autos still capture the largest chunk of the OC market.
Those with the biggest OC market share last year were led by Mercedes CSL-Class, which had a 14% slice. The BMW 5-Series notched 11.7% of the market with the Mercedes E-Class at 10.8%. Toyota Motor Corp.’s Lexus GS and Lexus LS430 were next at 7.5% and 5.7%, respectively.
Overall, Toyota had 23.3% of the market, more than double Honda at No. 2, which recorded an 11.4% share.
The Big Three,Ford, GM and DaimlerChrysler,together accounted for 31% of the local market, versus 54% nationally.
