NHBF predicts £51m weekly loss by hair & beauty businesses in Tier 4

By Helena Biggs | 21 December 2020 | Movers & Shakers, News

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The National Hair & Beauty Federation has predicted that Tier 4 restrictions across London and the South East will cost hair and beauty businesses in those areas £51 million in lost income per week.

Data published in November by the industry organisation indicated that 62% of salon owners could not be sure their business would survive until the end of the financial year in April 2021, and almost a third of that number (18%) explicitly sure they would have to close.

The report, compiled in exclusive association with the Local Data Company (LDC), shows that at the beginning of the year barbershops, beauty salons and nail salons were the top three retail categories that saw the highest growth in the UK – above supermarkets, coffee shops, takeaways and pizza shops. 

According to the Office for National Statistics there are nearly 45,000 hair and beauty salon businesses in the UK (a rise of over 1,000 since last year), which generated over £8bn in turnover in 2018, up from £7.5bn in 2017.

In addition, statistics pre-Covid revealed that hair and beauty businesses had higher survival rates after five years than many other sectors, in particular nail salons whose survival rate after five years was 69%.

Richard Lambert

Richard Lambert, NHBF chief executive said, “The NHBF Key Industry Statistics Report paints a picture of a strong and growing industry with business survival rates bucking the decline of the high street. It is characterised by a high percentage of female entrepreneurs, supporting young people into careers and its positive approach to flexible working.

However, this was before the coronavirus pandemic and we know from our recent targeted surveys that the majority of hair and beauty professionals are struggling to recoup their losses from lockdowns, implementing social distancing measures and the costs of increased PPE.

“While we appreciate these are all necessary, the sector has not received any additional financial support such as those gifted to the arts, the sports sector, leisure or hospitality. Businesses simply cannot continue on this basis and we are continuing our pressure on the government to recognise this. Financial help to salons and professionals during this difficult time will be the only way to ensure the hair and beauty sector can return to where it was at the beginning of 2020.”

 The full statistical tables are available free to NHBF Members, or for £250 to non-members.

Hair and beauty professionals can apply for further financial support via Hair & Beauty Charity.