Number of salons on the high street grows by 2%
The number of beauty salons and barbers on the high street continues to grow, increasing by 2% to 40,590 (from August 2015 to August 2016), according to new statistics from salon trade association the National Hairdressers’ Federation (NHF).
There’s been a 3% increase in the number of small salons with four or less employees, which now account for more than two thirds (69%) of all beauty and hair businesses, and a similar increase in salons with a turnover of less than £49,000 – suggesting that small businesses are primarily run by self-employed people.
There has also been a 4% increase in beauty and hair businesses with a turnover above £250,000, the research found, which the NHF predicts will continue to rise as large chains and franchises grow their brands on the high street. However, medium-sized businesses with a turnover in the £50,000–£250,000 range has dropped by 3%.
Despite the industry expanding, the number of people working in salon has gone down by 5% in the past year, suggesting that owners have cut back on staff numbers as well as therapists opting to going mobile or self-employed, renting out a treatment room.
However, research shows that half of all small businesses fail within their first five years. “Beauty businesses need to be focused on running a profitable business if they are to survive and thrive,” says NHF chief executive Hilary Hall.
“The NHF is here to help members run successful businesses, providing business support ranging from an HR helpline, employment contracts, chair and treatment renting agreements, [to] our newly launched NHF Business Academy providing training courses, a business helpline and in-salon business coaching.”
You can read the NHF’s full statistics here.