Mary Kay Distribution Changes

An employee of Mary Kay Inc. just tipped me off that the company is discontinuing 4 of the 5 distribution centers that were servicing the sales force. All customer service employees other than those at the Dallas facility have been let go. All of the warehouses other than Dallas will be closed as of July.

These changes apparently mean the loss of approximately 50 to 60 jobs per warehouse/distribution center.

The question is why? We’ve always been told that these distribution centers help get products to consultants more quickly and efficiently. Is this a cost saving measure? Is it possible that numbers in the U.S. are down significantly?

Assuming this is true (as I have no way to independently confirm it), I suspect that the numbers have contracted in the U.S. so much that it no longer makes sense to have multiple distribution centers. I suspect that China activity has been “subsidizing” U.S. activity, and China is where the real growth is. MK stopped reporting U.S. numbers separately over a decade ago, likely because things were already in decline. It’s hard to find anything other than “global” numbers anymore.

Simply put, Mary Kay has worn out its U.S. market and it makes no sense to keep putting money into it. Sales are down in the U.S. and this is a long-term trend. Profitability is also decreasing in the U.S., and they only way to get that back up as a percentage of revenue is to cut costs. Decreasing distribution centers will significantly reduce costs, and the impact on the sales force will be minimal. A day or two extra to receive products won’t be all that noticeable, but on an annual basis, the reduced costs from 200+ fewer employees and four fewer building with related equipment will be substantial.

62 Comments

  1. morningstar

    Agree that the company is suffering, thankfully as they did it to themselves. Sephora is opening another 100 stores.

    A WARN notice should have been or be filed for this amount of employees being let go from corporate.

  2. PeachyNotPink

    The primary manufacturing plant is in Dallas and a second plant was opened in Hangzhou, China. With the declining US market, and this news of distribution centers closing, I wonder how long it will be before all the manufacturing is done in China and they close the plant in Dallas.

  3. Ruby Slippers

    Also all product reviews at mary Kay website have been removed. I was going to post a bad review on an item. All reviews are down and also the 3D Miracle set mentions that products have a “scent” . Overcoming objections upfront. Everyone hates the new 3D set and foundations and most of the new products. I have Director friends who cannot stand the new products.

        1. Kkris

          I wont sell any of the lipsticks. They are full of chemicals. The 2 kinds I tried, left sores on my lips, that took a week, each lipstick, to go away. They don’t last long. End up on peoples teeth, which looks sloppy. Waste of money. I only use Covergirl outlast lipstick, topped with Anastasia Beverly hills glittery lipgloss. Always get compliments, and its cheaper then Mary Kay.

  4. morningstar

    The goal is for Sephora to be close by a larger population of women and offer them classes. And here are more choices for everyone. Waving to corporate and all the inventory loaded kaybots.

    https://www.syracuse.com/business/2020/02/sephora-bucks-retail-trend-plans-100-new-stores-in-2020.html

    Back to peddling MK anywhere you are allowed…….their corporate sales restrictions on sales, product launches (think men making the decisions), are doubling back to bite them.
    I think there is a connection of the newer NSD’s leaving and/or downplaying MK, new quotas at their level, and the NSD input is likely negligible at the round table. LOL

    Run for your lives…… to ULTA and Sephora, walgreens and Walmart, etc.

    1. Lily in NYC

      Now I am extra-bummed that the sephora near me closed! NYC real-estate is it’s own weird animal; I work in a very tourist-heavy area and there are tons of predatory commercial landlords who raise rents to absolutely insane amounts. That sephora is now a tacky shop that sells NYC-branded useless crap to tourists.

  5. Ruby Slippers

    I also see NSDs leaving. Gillian Ortega, Jamie Vrinios quit, and then current NSD Dacia buying a Navigator with cash comp instead of her taking her FREE NSD Cadillac .
    Free advertising for MK is going away. I’m sure one of these days cash comp will go away as its of no benefit to MK Corp. for anyone to take cash comp.
    NSDs on IG rarely mention MK .
    Occasionally promote their makeup routine and favorites with MK products.
    I think Corp is making them do this.
    Even Gillian Ortega did a mini MK commercial on her cooking/ health videos. I think that was part of her “exit package” to make her do that.

    1. BestDecision

      Gillian Ortega left MK, but she just spoke at the Feel the Power retreat alongside Pam, Gloria, and others. This whole thing spells out very clearly what is happening: MK is losing money quickly. Years ago, Mexico was MK’s #1 market and superstar, and I bet China is going to get their manufacturing for pure cost-saving measures.

      When NSDs leave, and the earliest I recall was Allison Lamarr, the writing is right there in front for all to see. The current NSDs are probably going to ride it out as long as their checks are decent, but a major exodus is right around the corner.

      1. TRACY

        Yep, I think with someone like Gillian, it was very calculated. What are the chances of increasing my commissions? If the commissions are stagnant or declining, then it’s to her benefit to leave now, since the “pension” payout is based on the most recent commission checks. She can collect those at a higher rate, and be free to pursue these other scams with her husband and son.

        1. BestDecision

          TheMarch Applause is now out. Some highlights:

          Only 6 NSDs are on target for Inner Circle (usually about 13).
          Only 13 Directors nationwide had units adding 20 or more new Consultants.
          Only 9 people nationwide finished their Grand Achiever car.
          Linda Toupin’s daughter catapulted to about $55,000 wholesale production and was #1 in Ruby (Must be nice to not have to work to finish DIQ and get handed a unit that production and a $14,000 commission check).
          Among the Top 500 units for production was a unit that did only $35,000, which is about $16-17,000 wholesale.
          Among the Top 500 Director commissions in the whole country was a $5,582 check.
          There’s a 2 page article about teaching unit members to recruit people EVEN BEFORE THEIR OWN GRAND OPENING and to instantly be a Red Jacket in their first month.
          And a 2 page spread on Career Conference (You get a $40 wholesale credit for going, but it requires you to place another wholesale order to use it.)

        2. ElleBee

          I thought Gillian Ortega reached mandatory ‘retirement’ age in MK and is now an NSD Emeritus? If that’s the case, she didn’t really leave the company in the same way that Jamie Vrinios and Allison Lamarr did.

      1. TRACY

        Standard Escalade 203.9 inches long
        Navigator Black 221.9 inches long

        So yes, technically it’s bigger. Do I think it REALLY makes a difference? Not much. I think this is part of a larger plan to expand earnings outside of MK. I have a feeling she is building her “other” earnings and this Navigator is to help take the focus off MK so she can better sell to people in other MLMs.

  6. Char

    (Off topic) My daughter is getting married. In December, we decided to swing into David’s Bridal. The store is of ‘Big Lots’ caliber – at least in my city compared to the other bridal shops we visited. What a pit, and we couldn’t get out of there fast enough. My daughter tried two dresses to be nice. There was no fish bowl, but she did give her name and email to the lady up front. There was no mention of MK.

    Guess what she got today? Yep, David’s sold her info. Mom isn’t too happy either, and I’m not sure what I plan to do. I’m half tempted to go in her place and get my “customized MK spa-like Bridal Beauty Experience” as one of the “Congratulations, you are one of our February recipients”. I’ll tell her my daughter can’t make it, and ask if MOB okay. We know that answer. That, and/or rip them a new one and start posting reviews about David’s Bridal promoting pyramid schemes.

    I know this is old news to former consultants. Just letting you know it’s still happening.

    1. BestDecision

      It sure is! You will make waves when you post your feedback. They’ve sold brides’ info for years and years, and even the in-store soliciting of names is gross.

      Another example of MK people preying on the weak. Brides who want to look their absolute best and are stressed out in the planning of their weddings should not be approached by someone promising “spa” anything. Just disgusting.

  7. Patty

    The MK gal upstairs from me in my office tells them that it’s a “make over with a facial”. They show up with their friends and find out they have to do their own facial and make over LOL some are really ticked off.

    The MK gal buys the leads from David’s Bridal through MK corporate.

  8. pinkblacksheep

    Things are definitely looking desperate. Have you seen the latest Applause? Looks very interesting after the NSDs that just retired passing their personal units to their daughters. Linda Toupin’s daughter is now magically a top director (and of course only became a director so LT could “pass on” the unit but still actually be involved).

    1. TRACY

      Sean’s instagram account is hidden or deleted. So that’s interesting.

      I got some information that the sales development department was seeing some changes, but no details. I believe this!!! Do you have a link?

      1. Ruby Slippers

        It’s deactivated as he was still on my fb list. Also there was major discussion among people yesterday on a post but it was removed when I last checked.
        People are nervous and also some people are in major fog saying company “always does what’s best” for its people….maybe 25 years ago with Mary Kay running the ship but it’s 1000% corporate now.
        Not P&L (people & Love) as it maybe was a bit more 25 years ago.
        Some people on that removed post are sooo in the pink fog that they had a picture of a horse with blinders….titled “put your blinders on” . Oh I am soooo grateful mine finally came off! Free at last!

  9. CorporateCarol

    Mary Kay sales are down globally. With the US trade issues and the government’s halt of nutritional, China sales are down as well as US sales. Corporate is not only closing 4 branches but over 200-300 positions have been eliminated within the last year with more to come. The new Richard Roger Manufacturing Building has major issues and 80% of the products still cannot be made their so the company is outsourcing production and having product made by contract manufacturers.

  10. morningstar

    The dynamic is shifting, passed by are days where the family can live off the billion dollar company. Not impressed by MK son’s lifestyle (google him), who demanded to live high off the hog esp. in the 1990s. The adulation that was given to them including the grandson at seminar was absolutely a weird entity. Re: Mr Keys, he was at a Keystone retreat for the NSD brothers mid 2000s. My husband asked him direct business questions about investment, and he evaded so well. I asked him why MK let go of the original basic line because my customers still rave about it. He responded “we couldn’t source the ingredients” – well ok. Fast forward to the latest stuff that is pushed, that was not true, based on the crap now (including scent).

    The top view, the company is in a downturn, the directors and NSDs are totally tired of the same ol’ same ol’ gig where they get a measly cut of the profits compared to what they raked in every year. And the mule team isn’t willing to work as hard for the directors, NSDs. You can lease a car a beautiful car for 1/4 to 1/3 of the costs, look professional while selling MK, but no you are a meager low life that needs the pink car. I digress, but an example of how ultimate greed finally caves. NSD taking the cash was a sin in the past.
    From the grapevine: The career conference beg a thon is on, and Denver is not on the list. MK went to a cheaper venue in Colorado springs (125 miles south), that leaves the room rates at only 100.00 per nigh for the 2 day extravaganza. Trying to shlog, your people down the road to yet another event where you get to lay out your money to see who is who mid year. Please no,,,,,,,not again. Get to work all of MK you lazy losers, corporate has an image to maintain.

  11. CorporateCarol

    The “two warehouse” discussion seems to be an afterthought. They say they are trying to find the best locations in the US for this and how it will operate. Most likely at these two warehouses, order filling will be outsourced. Think about it, no one cares who fills their orders as long as it is accurate and gets to them quickly. Think of how Amazon/Amazon Prime works. 24/7 order picking/pulling, orders out the door and to you the same day or within two day, that is what Mary Kay is going for.

      1. TRACY

        My guess would be that he’s just embarrassed and wanted to retreat for a little while. I bet he’ll be back in short order after he gets his wits about him. There will be a job for him, and the NSDs will help him find it. Social media will help.

    1. Patty

      Very true! When I was in it, a lot of my friends just automatically said the products were crap and full of chemicals. Now we all know a lot of their products are actually pretty good but that’s the reputation. Also the MK lady upstairs just about throws up on your when you mention Sephora or Ulta. I think it’s pretty clear that they have lost a lot of their customers to those stores. It is so much easier to just pop in and get something there where you can play with it before buying. What a pain to call your gal, then wait for her to put it together and meet up or have it mailed to you.

      Oh and let’s not mention that you can’t wear PANTS! What??? Why are they following some dress code from 1962? The fact they won’t modernize with the rest of the world and have stayed stuck in the 1960s is one of the many reasons they are failing. Women are no longer little housewives wanting some recognition for selling a couple of lipsticks. We are power women who want to own a business and happen to love make up and skin care. But women like me aren’t wanted in the organization.

  12. Teddy

    Rat bastards let me go after 20 years of service. No loyalty to the employee…..they leave 20, 25 & 30 yr employees with no benefits while they mismanaged wasting 200 million on a Manufacturing building R3 that could not open. ALL THE WHILE they fly family members all over Europe on company credit card and giving non working family members benefits……It really is a shame. What once was God first Family 2nd Job third strikes a faint chord with today’s money grubbing sons of bitches. I am proud to have been a part of a time when working there meant something. I owe a lot of what I became and have learned from Mary Kay. I learned about golden rule service and a culture that Mary Kay herself tried to show us all is nonexistent now. After the 15th year mark I slowly saw I was becoming just a number and not an employee. They came like a thief in the night….Showed up….Call you into the conference room….get your stuff and get out….Oh, by the way we’re sorry it’s not personal.

    1. Ruby Slippers

      Teddy, It’s awful what they did to you! And all those other people. I agree it all changed I felt after Tom Whatley left and after MK passed away. It’s 100% corporate. I hope you received a severance package or something. Nathan Moore is mis managing everything!

    2. Cynthia

      Mary Kay is rolling over in her grave! That’s awful. Exactly how much money do the family members really need? while exploiting employees and the “sales force”. When the person who struggled to get their company up and running is gone, those left behind have no restraints and act as they will. So sorry, Teddy. I’m an active consultant and am very disappointed in your outcome.

Leave a Reply to Patty Cancel reply

Your email address will not be published. Required fields are marked *