A recent survey of 560 personal care businesses across the UK – compiled of 82% salon or barbershop owners – has found that 43% of businesses are making a profit despite the hurdles of the last quarter.
This is driving positivity across the sector, with more business owners reporting positive growth and survival expectations. In January 2022, around 60% of businesses were wary of their prospects, now two-thirds are confident of their survival over the next six months.
Although there has been a marked decline in barbers and hairdressers on the high street, the wider industry is also being bolstered by new businesses. The Value of Beauty states that more than 95% of personal care ventures are SMEs that employ between one and four people.
In addition, data from Companies House illuminates just how many new beauty companies are joining the market. Before 2014, fewer than 500 registered companies had ‘beauty’ in their name, but each year since then, more than 500 companies with beauty in their name have registered.
Despite witnessing more closures (according to the Local Data Companies’ recent report), salons and barbers are reporting increased footfall. Respondents cite more positive business activity in comparison to the previous quarter, with around 65% citing ‘busy’ and ‘steady’ as their day-to-day footfall expectations.
It’s better news for customers too, as businesses are less likely to increase salon costs to cover larger overheads. Over the last three months, 64% of business owners upped their prices, however, this figure is set to drop by 13% over the next quarter.
Contrary to these increasingly positive findings, concerns surrounding high energy costs, new talent, and taxation remain prevalent in the service sector.
In response, the NHBF is working with other stakeholders – including the British Beauty Council – to introduce further energy support, create apprenticeship incentives, and develop wider business support strategies.
Read the NHBF’s most recent ‘State of the Industry’ results here.
Original article written by Grace Warn and featured here
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