This is the tale of two sister spas in the middle of Boston: Emerge Spa and Salon, and G2O Spa + Salon. Both properties were born of Giuliano Day Spa, which opened its doors in 1993. “There weren’t very many day spas, and people didn’t know what it was. We spent almost a year answering the phone ‘Giuliano Day Spa,’ and there would be a pause at the other end of the line and the person would say, ‘What?’ You had to take the time to explain it to them,” says owner L. Joyce Hampers.

The property grew from its original 5,000 square feet into two businesses with more than 10,000 square feet each when Hampers recognized her spa was serving two very distinct clienteles at its extremely posh Newbury Street location. “Newbury Street is an eight-block long street that is the premiere shopping area of Boston, akin to Rodeo Drive. It’s known for having a collection of small upscale shops, such as Valentino and Chanel, as well as boutiques, salons and small spas. It’s like two worlds at either end of the street. The western end is toward the universities and is more bohemian; it’s upscale, yet eclectic. The other end is near TD Banknorth Garden—the arena formerly known as Boston Garden—and is really elite and very streamlined,” explains Hampers.

Giuliano was located on the last block at the bohemian end and, because of its location, was attracting younger spa-goers who saw the experience as a social one. This type of atmosphere was beginning to clash with the business’s more mature, results-oriented clients, so Hampers made the decision to divide into two distinct locations. In 2006, the split was made, forming G2O and Emerge. G2O remained in the old building and started catering to its younger clientele by offering a more modern, more social space that featured trendier treatments in a fun atmosphere.

Emerge opened down the street, supplying the clients who preferred private experiences with treatments that focused more on results. “Emerge’s atmosphere is minimalist, modern and sleek,” explains Hampers. But perhaps the most interesting part of this tale is how it began, proving spa professionals come from all walks of life.

Hampers is no ordinary entrepreneur—she began her career in law and later became the assistant secretary of commerce for former president George H.W. Bush. During her stint, Hampers traveled throughout the United States encouraging small towns to embrace small businesses instead of relying so heavily on large factories for their livelihoods.

When Bush wasn’t re-elected for a second term, Hampers found herself back in her home state of Massachusetts, wondering what her next step would be. “I thought I could go back into practice and realized that I’d been bitten by this small-business bug. And here I am, just like another government bureaucrat telling people how to do this, and I’ve never done it,” she laughs. “I decided I would like to start a business and was sitting in the chair of my colorist and asked him if he’d ever thought about owning his own business. He said, ‘Yeah, every day,’ but he needed capital.” The two partnered up and the rest is history, even though Hampers admits she didn’t realize what she was opening would be categorized as a day spa. “I didn’t know what a day spa was, so I kept calling it one-stop shopping,” she says.

No matter what you call the empire Hampers has built, there is no denying it has become successful because it adhered to a basic secret of spa success: catering to the needs of clients. The benefits of this strategy will continue to be reaped in 2010 as the entire operation becomes once again housed in a single building that is intended to serve as an urban day spa destination for its varied clientele. And, when all is said and done, Hampers can count herself among the government bureaucrats who actually practice what they preach.

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MA Day Spas

PCI Compliance – Why spas, hotels and resorts can no longer ignore it! – By Frank Pitsikalis, ResortSuite Founder & CEO ResortSuite

Years ago, a merchant’s crime threats were limited to an armed delinquent or a shoplifter. Today you can add the cyber thief to that list. This thief is looking for a more profitable payoff, your customer’s/guest’s payment card information. He or she is much more savvy and capable of doing more harm to your business than just emptying your hotel’s front desk float or spa’s cash register. This breed of thief can cost you thousands of dollars, your reputation, and the ability to accept payment cards.
Since January 2005 more than 245 million databases containing sensitive and personal information have been involved in security breaches in the US alone (PrivacyRights.org). In 2007, the number of attacks on payment card processing doubled from 2006, a trend that we don’t see diminishing. According to Visa Inc., 80% of all identified compromises occurred at Level 4Merchants’ – businesses that process less than 1 million payment card transactions each year. And if you thought the hotel, resort, spa or hospitality industries were at all exempt from that, think again. Upwards of 55% of credit card fraud comes from the hospitality industry (The PCI Compliance Process for Hotels, American Hotel & Lodging Association).

The Payment Industry’s Response
In 2006, the major credit card companies joined together to form The Payment Card Industry Data Security Standard (PCI DSS or PCI). PCI was established to eliminate the risk and mistreatment of cardholder data, enhance payment account data security, and to ultimately protect the cardholder. In 2007, the PCI compliance grace period ended and became mandatory.

The Implications of PCI Non-Compliance
All business operations accepting credit and debit cards must adopt processes to protect sensitive customer payment information and have no choice but to comply with PCI. Non-compliance puts the operation at great risk, leaving the business and its customers/guests vulnerable. Operations face fines of up to $500,000, increased card processing fees (or worse), the loss of the ability to accept payment cards, bad publicity, and brand devaluation. The consequences are serious, from monetary to business-ceasing.

Hospitality Industry’s Responsibility
Unfortunately, spa, leisure, hotel and resort operations are lagging behind other industries. The clock is ticking and the hospitality industry needs to embrace the requirements set forth to comply with PCI. At the core of this situation is the abundance of legacy software systems still being used in spas, hotels and resorts. Although the responsibility to comply with PCI isn’t all about technology, software undoubtedly plays a large role. Most of the archaic systems used don’t have the ability to properly encrypt and secure sensitive card holder information or to properly relay encrypted information to your selected credit card processor. And because of software architecture limitations in these systems, they cannot ever be updated to meet PCI standards. Your software could be hindering you from compliance and putting your operation, customers, and guests at great risk.

What Spas, Hotels, Resorts and Leisure Operations Need to Do
PCI compliance is the responsibility of the merchant, the hotel, the spa, not the software vendors – the onus is on you – you need to make it your business to find out whether your software system(s) meet or are at least undergoing the process necessary to meet PA DSS (Payment Application Data Security Standard – the certification for software developers [if you are using a custom application, then you are also responsible for making the application meet the PCI DSS requirements]). All applications must be PA-DSS compliant by July 1, 2010 (Visa Inc.) A listing of certified applications can be found on visa’s website. However, there are some simple things you can do to quickly evaluate whether your software is meeting even the most fundamental PA DSS (formerly called PABP) criteria.

• Are users automatically logged off after a maximum 10 – 15 minutes (max) of inactivity?

• Is all card holder data in folios, receipts and reports masked with maximum 4 – 6 digits appearing?

• Is card holder data masked or encrypted within the database?

• Is track data or card verification codes encrypted within the database?

PCI compliance is a serious business matter that should be approached at the top of your organization. Business processes and guidelines concerning the delicate handling of sensitive customer data and information should be put into place and should be incorporated into your corporate culture. Your software vendors should be engaged to help you understand how and where sensitive data is stored, processed, transmitted and eliminated.

If your current solution is not compliant, you should begin investigating alternative solutions as soon as possible. Make sure that your new solution(s) provider is well versed in the world of PCI and how it will impact your business. They obviously need to be compliant or should be well down the path to being compliant; otherwise, don’t even consider them as a potential software partner.

For more information on where to begin your PCI compliance, visit the PCI website or, call your credit card processor, which is always a great place to start.

PCI compliance may seem overwhelming at first, with all those acronyms and technical jargon. However, once you engage the right partners and familiarize yourself with the tools and processes, you will be better for it and the benefits will outweigh the work and resources invested. Protect your customer’s/guest’s sensitive data and in turn protect your operation. You can no longer afford to sit idle. PCI compliance is your responsibility!

Frank Pitsikalis,
ResortSuite Founder & CEO

This article is provided for information purposes only and the contents hereof are subject to change without notice. This article is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions or merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this article and no contractual obligations are formed either directly or indirectly by this article. This article may be freely copied and distributed provided that it is not modified in any way and is distributed only in its entirety.

Spa, Spa Business

Elizabeth Arden Red Door Spas, the largest branded luxury day spa company, partners with DMX to enhance their spa atmosphere with a cost-effective multi-service solution. All spa and resort locations will have an eclectic mix of in-store music and informational on-hold phone messaging.

Red Door was previously using three different vendors to supply their music and messaging, but wanted to reduce the overall cost and total number of devices at their spas.

Under the agreement, the Stamford, CT-based Red Door Spas will market DMX’ services to the 30 locations it currently serves in 13 states. This will augment the company’s in-store music process, by having DMX as the sole vendor to deliver and easily manage every location’s customized service. With DMX’ ProfusionXS, Red Door will have three music styles in four separate areas of each resort and spa, including a wide range of upbeat, modern, cosmopolitan hits to relaxing, calming acoustic tracks.

“Each Red Door Spa location is unique in its own way, but it’s important that we maintain a consistent overall experience,” said Sarah Egan, Marketing Manager of Elizabeth Arden Red Door Resorts & Spas. “Knowing DMX has a history of supplying upscale-clients, we realized they would have the best solution for Red Door. We are extremely pleased with the entire process and end result.”

In addition to music, DMX has incorporated an on-hold messaging service, also delivered through their ProfusionXS device. This enhances the Red Door experience for customers over the phone, to extend their inviting image beyond the physical walls of their spa.

“This is a great partnership between Elizabeth Arden Red Door Spas and DMX. Red Door was looking for efficiency and DMX provided a solution to meet both their branding needs as well as their budget,” said Brian McKinley, VP of Marketing at DMX, Inc. “With their goals in mind, we reduced the number of devices at each location from four to one, and supplied messaging and music styles that best suit their ambience and brand image.”

The combination of two sensory branding components, in-store music and on-hold, voice messaging, provides the final solution to be a very upscale and invigorating spa experience.

About Red Door Spas
With nearly 100 years of beauty expertise based on fundamental elements and philosophy of day spa pioneer Elizabeth Arden, Red Door Spas operates 30 day and resort spas nationwide. Committed to enhancing the lives of their guests through beauty, harmony and well-being, and to providing pioneering techniques, quality treatments and advanced services, Red Door Spas will continue to expand, innovate and remain the leader in the day spa industry for years to come.

About DMX, Inc.

DMX, Inc. designs branded business environments and extends this experience into the lives of customers. This helps businesses differentiate themselves from competitors, build brand loyalty, connect with consumers, and provide an unforgettable experience for anyone who walks through their doors. On-site services include music, video, messaging, scent, and A-V systems. New media services include mobile message marketing, webcasting and music downloads. DMX also provides digital music services for cable television systems around the globe. For over 35 years DMX has represented businesses large and small, including some of the most identifiable international brands such as Coach, Starwood Hotels, 24 Hour Fitness and DKNY

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Spa Equipment, Spa Professionals

Shapes Salon & Day Spa, an award-winning salon and spa with locations in Charlotte, N.C., Herndon, Va. and Fairfax Station, Va., today announced its 30-year anniversary. To celebrate this significant milestone for a women-owned business, Shapes is giving customers a special “Year of the Pearl” offer including 30% off of selected day spa services.

Shapes invites its customers to celebrate 30 years of success with a special “Year of the Pearl” offer that features 30% off on selected services in its Charlotte Spa, Herndon Spa and Fairfax Spa. This discount is available with a purchase of three microdermabrasion sessions, ultimate spa manicures, circulation mud pedicures, Brazilian bikini waxes, 80-minute hot stone massages, full-head of highlights or luminous pearl shine conditioning treatments. Spa packages expire four months from the date of purchase and hair packages expire six months from date of purchase.

“Thirty years ago, Shapes was just a dream at a time when becoming a women-owned business owner couldn’t be more difficult,” said Sam Lane, owner, Shapes Salon & Day Spa. “Yet, with a passionate focus and unwavering dedication we’ve continued to make Shapes an award-winning salon were customers know they will receive the pampered attention they deserve. As Shapes turns 30, we are pleased to celebrate this tremendous milestone with a number of special offers for our customers – the extended Shapes family that has been integral to our three-decade success.”

Lane opened her first Shapes Salon location in Virginia in 1979. With her young son by her side, she made Shapes a rapid success moving her first location to Fairfax Station, Va in 1986 and opening her second location in Herndon, Va. in 1988. Now, with three locations in Virginia and North Carolina, Lane is proud to have three generations of family beside her as Lane’s grandchildren join her son in learning the family business.

The Shapes Salon “Year of the Pearl” specials are available to customers visiting any of Shapes’ three locations. For more information, please visit www.shapesdayspa.com or call 704.341.0922 (Charlotte), 703.713.0222 (Herndon) or 703.250.0000 (Fairfax Station).

About Shapes Salon & Day Spa
The award-winning Shapes Salon & Day Spa was founded over 30 years ago on the principals of delivering premiere services with the highest level of customer care. With locations in Charlotte, Herndon, Va. and Fairfax Station Va., Shapes Salon & Day Spa is committed to excellence and world-class service for every guest on every visit. For customers looking for a simple hair cut or a full day of relaxation, Shapes Salon & Day Spa has the perfect service to put your mind and body at ease

NC Spas, VA Day Spa, Virginia Spa

Spa Sydell, a purveyor of pampering in metro Atlanta for more than a quarter-century, has filed for Chapter 11 bankruptcy.

The six-spa chain, founded by Sydell and Arthur Harris, will continue to operate, the company said, and it will sell and honor its popular gift certificates. It is adding a seventh location in Roswell.

In its 117-page bankruptcy petition, the company listed $4.3 million in debts and $5 million in assets. The filing shows a decline in gross income to $16.2 million in 2008 from $19.1 million in 2007. In 2009, year-to-date sales were $9.3 million through May.

Atlanta bankruptcy attorney Scott Riddle said spending on luxury items such as spa treatments has fallen in the recession.

“Due to the current economic times and for the continued future of Spa Sydell, it was necessary for us to take this proactive step,” CEO Richard Harris said.

Bankruptcy would allow the company to reorganize financially and to renegotiate its leases.

The chain features services such as massage, facials, manicures, microdermabrasion and reflexology. It has garnered attention locally over the years, in part, through the high profile of Sydell Harris.

The company started with a single location in Buckhead in 1982 and has changed names and expanded since. It has about 350 employees.

The bankruptcy filing lists $2.25 million in unsecured debt. Of that, $743,000 is owed on leases for the six retail locations. Hundreds of unsecured creditors are listed, mostly for trade debt, from radio station and newspaper advertising to business cards, shipping and catering.

The only secured creditor listed is BB&T, with a $1.8 million loan.

The company also owes the Georgia Department of Revenue more than $200,000.
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A Spavelous Recommendation is if you have a gift certificate from any of these locations USE IT NOW!  In addition, we recommend that you do not purchase and new gift certificates from these locations.  If you want, you should purchase a national spa gift certificate that can be used at many different spas in the event of closure.  The Spavelous Spa gift card may be used at any spa or salon that accepts VISA.

Georgia Spas, Spa Bankruptcy

Greenhouse Spa in Dallas Closed

The Greenhouse in Dallas, Texas, one of the earliest and upscale destination spas, closed its doors and laid off all its staff. “The owners are saying they might reopen in October,” says Brooke Couch, former director of sales and marketing. Their website is still up and running, but no one answers the telephone. They do list a opening week special, but no mention as to when or if they will reopen.

The Greenhouse opened in 1965. The Greenhouse pampered wealthy ladies while they lost weight or recovered from plastic surgery during week-long stays. Being served breakfast-in-bed on fine china was a signature Greenhouse experience.

Owners Lee and Gerry Katzoff could not be reached for comment.

Spa Closing, Spa Closings

The owners of Iatria Spa and Health Center of Raleigh have pulled the final plug on the business and filed for Chapter 7 bankruptcy liquidation.

HFM Spa Management Corp., the parent company of Iatria’s five business entities, filed a voluntary petition with the Eastern District of North Carolina’s U.S. Bankruptcy Court on Sept. 8.

The petition lists more than 100 creditors, many of whom were individuals who had pre-paid for services. Iatria was a full-service, medically oriented spa that offered services like chiropractic care, acupuncture and naturopathic medicine, as well as Botox injections and mesotherapy. The bankruptcy petition listed more than $500,000 in liabilities and less than $100,000 in remaining assets.

Iatria co-owners Erika Mangrum and David Mangrum opened the first location in 1999. They closed the downtown Raleigh location in 2008 and closed the remaining three locations – including the flagship location on Creedmoor Road in north Raleigh, as well as smaller locations at Wakefield and in Cary – on Aug. 31, 2009.

Terri L. Gardner, a lawyer with Nelson Mullins Riley & Scarborough LLP in Raleigh, is representing HFM Spa Management Corp. in the bankruptcy proceedings.

Joseph N. Callaway, a lawyer with Battle, Winslow, Scott & Wiley PA of Rocky Mount has been appointed by the court as the interim trustee for the case.

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Now more than ever, if you want to buy a Spa Gift Certificate, you should only purchase a Spavelous Spa Gift Card. It is accepted at any spa or salon that accepts VISA. You never have to worry about a spa business closing.

Iatria was a well-known, reputable spa that had been around for ten years. The Greenhouse was a destination spa icon since 1965. So you can’t necessarily count on reputation or longevity to make sure your gift certificate will be honored when the time comes.

The good news is that two Raleigh businesses say they will honor the gift certificates. R.O.I. Salon in Raleigh (which does hair, skin and nails) has announced it will honor the gift certificates dollar for dollar. And the owners of Synergy Spa, Anna Porrazzo and Dave Churchill, say “we will work with you to redeem these with us; we only ask you give us some time so that we can figure out a way to best accommodate everyone.”

MedSpa, Medical Spa, Spa Bankruptcy, Spa Closing, Spa Closings

The spa, called Power Image Inc., is owned by Concetta and Melford Bibens, who also run several online businesses.
The building at 5937 Main St. on Tannersville is on the market for $399,000 through Village Green Realty, which describes it as a “Manhattan-style gym and salon” on its Web site.

Warren Hart, director of Greene County Planning and Economic Development, said Power Image received funding through its Main Street Revitalization Program that helps small business owners refurbish buildings and facades. He believes the spa closed last year.

“It did open and was successful,” Hart said. “But it’s closed now.” Bankruptcy documents show that Greene County and NBT Bank are owed $270,000 by Power Image, although Hart said that that is the entire value of the mortgage of the property, much of which is owed to the bank, not the county.

“Our loan was substantially less than that,” Hart said. He declined to talk about specifics about the case, although he said he had seen some of the Internet venture that the Bibenses run.

According to various Web sites, the Bibenses now live in Sarasota, Fla. and run several Web sites, including one called Cashmakingpowersites.com that claims to help people make money online. The couple could not immediately be reached for comment, and their bankruptcy attorney, Ralph Lewis Jr. of Catskill, did not return a call seeking comment.

The bankruptcy filing for Power Image lists $295,000 in assets and $644,722 in liabilities. The filing was made in U.S. Bankruptcy Court in Albany on Thursday.

The Hunter Foundation Inc. in Tannersville, is owed nearly $20,000 from a grant it provided to the couple for the spa. But Charlene Holdridge, the foundation’s executive director, declined to comment on the grant.

“Because it’s a grant, it’s confidential information,” Holdridge said.

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New York Spas, Ny Spas, Spa Closing, Spa Closings

The Metro Spa and Salon in Latham, N.Y., has new owners.

Angela and Robert Horvath, operating under the name Lourdes LLC, recently bought the building and the business from the longtime owner, Arthene Lavalley.

The Horvaths paid $210,000 for the building at 350 Watervliet Shaker Road. The sale closed March 31 and was handled by Howard Carr of The Howard Group.

Financing was provided by KeyBank.

Angela Horvath estimated the value of the business at $500,000. There are 15 hair cutting stations, which Horvath said is considered large for the industry.

Lavalley, who had owned the business for 18 years, continues to cut hair there.

“I used to work here eight years ago,” Angela Horvath said. “This was my field until I started having children. Arthene and I ran into each other last Christmas. She was ready to sell and I was ready to buy.”

Horvath said she invested in a new computer system and will be offering laser hair removal. The spa side of the business has been more impacted by the economy than hair cuts, she said.

The cost of a hair cut for men and women ranges from $45 to $65.

New York Spas, Spas for Sale