10 November 2016
Britain’s hairdressing, barbering and beauty industry remains vibrant, with the number of salons and barber shops on our high streets continuing to grow across the UK, latest statistics from the NHBF have confirmed.
The number of hairdressing, barbering and beauty businesses increased by 2% to 40,590 in the 12 months from August 2015 to August 2016. However, although the industry is expanding, the number of people working in salons has gone down by 5% in the past year. This suggests that salon owners have cut back on staff numbers, but it could also be an indication that the trend towards self-employment is continuing, not only for people renting chairs or treatment rooms in salons, but for mobile freelancers too.
There has been a 3% increase in the number of very small salons with between 0 and 4 employees, which now account for more than two thirds (69%) of all hair and beauty businesses. At the same time, the NHBF figures reveal that there has been a similar 3% increase in the number of businesses with turnover of less than £49,000, suggesting that these smallest businesses are run primarily by self-employed people.
At the other end of the scale, there has been an increase of 4% in the largest salons with turnover above £250,000. The NHBF is predicting that, similar to what’s happened with coffee shops, this is trend which will continue as large chains and franchises establish and grow their brands on the high street.
The number of medium sized businesses with turnover in the £50,000 to £250,000 range has dropped by 3%. This builds on the findings of an NHBF survey in 2014 which showed that whereas in the past salon owners had run two or three salons, there had been a jump of 28% in the number of salons owners running just one salon.
The fact that hair and beauty businesses remain amongst the most popular start-ups suggests there is still room for independent businesses, but they face fierce competition and research consistently shows that half of all small businesses fail within their first five years.
As NHBF chief executive Hilary Hall says,
Whatever their size, all hair and beauty businesses need to be very focussed on running a profitable business if they are to survive and thrive. The NHBF is here to help members run successful businesses, providing a business support ranging from an HR helpline, employment contracts, chair and treatment renting agreements, and our newly launched NHBF Business Academy providing training courses, a business helpline and in-salon business coaching.”