The basics:
- Harmon launches $3M crowdfunding campaign for store expansion
- New openings set for Shrewsbury, Garwoo; more planned
- Early investors earn perks, such as gift cards & VIP memberships
- Harmon expects to operate five stores in 12 months, additional openings after that
Fueled by decades of customer devotion, beloved discount beauty, health and cosmetics chain Harmon is launching a crowdfunding campaign to support its brick-and-mortar revival in the New Jersey-New York market.
In an exclusive interview announcing the effort, Harmon Retail Holdings Inc. CEO Jonah Raskas said he hopes to tap into the brand’s equity to raise capital for new store openings by giving fans an opportunity to become stakeholders in its next chapter.
Raskas purchased the brand’s intellectual property rights for $300,000 in August 2023 during Bed Bath & Beyond‘s bankruptcy proceedings. The New York-based investor is now rebooting at least five of the brand’s stores in the tri-state area.
Offering access
Since the buy, Raskas and a team of core members from Harmon’s original team have flipped the lights back on at the retailer’s old stores in West Caldwell and New Rochelle, N.Y.
In June, Harmon also returned to Somerset County, where it took over a former Party City store at Bridgewater Town Centre. Next up: locations in Shrewsbury and Garwood.
Along with inquiries from customers about where future sites will launch, Raskas said Harmon has received quite a bit of interest from individuals wanting to get a piece of the chain.
“We get a range from ‘How can we invest?’ to ‘We want to be an owner and would love to become more involved in the business.’ And, because of that, we were like ‘You know what? This is a good way of growing faster and moving faster and also further engagement with customers,’” Raskas said. “If a customer is an owner of the business, they’re going to want to shop more often. It’s full circle … So, that’s where we thought there could be some good synergies.
“We wanted to enable people to be able to own a piece of the Harmon comeback and be part of this expansion,” he continued.
“… One of the trends for the last few years has been not being able to have access to companies before they go public because they did so many rounds without involving the public and then stayed private for a lot longer. This is enabling people to invest ahead of and outside of waiting for a company to go public … It’s enabling them to get in at an earlier point on the company journey.”
Devoted base
Founded in 1971, Harmon earned a cult-like following. Its offerings included big brand names, as well as Harmon’s private labels (Face Values, Core Values and Smart Values). Although Harmon’s shelves featured a lot of the same items as CVS and Walgreens, fans flocked to its wide assortment of soap, makeup, hair care and skin care products; low prices; and travel-sized products collection.
While the majority of the chain’s outposts were in New Jersey and New York, its footprint extended into California, Connecticut, Florida and Nevada.
As part of Bed Bath & Beyond’s attempts to stay afloat financially, Harmon’s 50-plus locations went dark in January 2023. When its parent company folded, Harmon was a thriving business with $150 million in annual sales and plans for national expansion.
Harmon 2.0
Between June 2024 and June 2025, Harmon’s three physical stores, revived e-commerce business and new $10-a-year VIP membership program generated over $5 million in revenue, according to the company. Over the next 12 months, Harmon expects to have five stores, sign up 5,000 paying members and hit $10 million in revenue to become cash flow positive.
As per a strategic growth plan posted online, the brand’s current business model revolves around driving revenue from retail sales – both online and in-store – and growing its paid membership program.
In the future, Harmon plans to develop salon studios to drive traffic and margin, become the first off-price beauty concept to offer franchise opportunities and create new in-store events for deeper community engagement.
According to the investor presentation, Harmon anticipates opening an additional 15 stores in the region to reach 20 locations between years two and four. It also aims to add warehouse space for inventory. During the next five to 10 years, re-openings will continue in the tri-state area and expand along the East Coast.
Currently valued at $10 million, Harmon is raising $3 million by selling convertible preferred shares. If fully subscribed, the Digital Offering LLC-managed effort may raise up to $5 million with over-allotment. According to Harmon, the crowdfunding campaign is open exclusively to accredited investors and a commitment of at least $2,500 is required to participate.
Proceeds from the newly launched drive will be used to expand the overall store count, Raskas said. That includes investing in inventory, store operations, opening expenses and marketing. Capital will also be put toward Harmon’s e-commerce business to grow omnichannel capabilities.
Interested?
Learn more about Harmon’s crowdfunding campaign here.
“We just basically want to continue focus on scaling the business,” he said.
“We have a main website set up, InvestHarmon.com, where customers can see what our vision is, see what we’ve done and see what we’re doing in the future. And, learn about what our overall growth plans are,” he said.
Perking things up
Additionally, early investors will be offered a 25% discount on shares in a future funding round. They’ll also earn a 7% yield in Harmon’s preferred stock, the company said.
“And then every owner, depending on how much they invest, will get different fun perks. It’s a range, from free membership to our membership program to curated beauty assortments sent to them to gift cards from $100 and up. Also, as we continue to relaunch our private label brand Face Values, they can be some of the first exclusive testers of these new product lines,” Raskas said.
According to Harmon, investor perks include:
- $2,500–$5,000: Insider Circle
Free one-year VIP membership and $50 Harmon gift card - $5,001–$10,000: Founders Circle
Free two-year VIP membership, $100 Harmon gift card and exclusive first access to all new product launches from the Face Values line - $10,001–$30,000: Retail Revolution Partner
Free three-year VIP membership, $150 Harmon gift card, exclusive tester of all new Face Values line product launches, limited edition Harmon Beauty Box curated quarterly for a year - $30,001–$50,000: Expansion Circle
Free five-year VIP membership, $150 Harmon gift card, exclusive tester of all new Face Values line product launches, limited edition Harmon Beauty Box curated quarterly for a year and annual investor update newsletter with behind-the-scenes updates - $50,000+: Harmon Visionary
Free five-year VIP membership, $150 Harmon gift card, exclusive tester of all new Face Values line product launches, limited edition Harmon Beauty Box curated quarterly for a year, annual investor update newsletter with behind-the-scenes updates, store opening ribbon cutting invitation with the team and priority access to future investment rounds
Hello, Monmouth County
In Shrewsbury, a grand opening celebration scheduled for Aug. 15–17 will include giveaways to the first 50 customers, raffles, product demonstrations and other surprises.
Shoppers who join Harmon’s VIP member program will receive a free welcome gift. Other rewards members incentives include 2% cash back annually, exclusive discounts, early access to top offers in store and online, member first events, seasonal savings and promotional opportunities.
At Shrewsbury Plaza, Harmon is taking over a 15,000-square-foot space left vacant after fabric and crafts retailer Joann went out of business. It joins a tenant mix that includes ShopRite, Marshalls, HomeGoods, Saks Off 5th and Five Below.
Previously, Harmon had a store on Route 35 in Shrewsbury at Grove West, which, Raskas said, “was a fantastic location for many, many, many years.” As part of Harmon’s reopening strategy, Raskas said the business is targeting areas where the brand has historically performed well.
The soon-to-open outpost is nearly double the size of Harmon’s locations in West Caldwell, Bridgewater and New Rochelle — which range from 7,000 square feet to 9,000 square feet, he said.
“We see opportunities of going larger in certain cities or circumstances. That’s where we see there might be some more opportunity in the market right now … That enables us to just bring even more value and focus on value, which customers love especially nowadays,” said Raskas, adding, “That’s always been a focus of ours.”
Source: bing.com
