Report reveals beauty industry’s financial fragility

A report co-released by booking and payments platform, Timely, and The Curve – a specialist financial education provider, has uncovered the fragility of Britain’s hair and beauty industry.

The research paper calls for increased assistance for entrepreneurs and the 95% of beauty businesses classed as ‘microbusinesses’ in the industry. Titled, ‘Is Beauty On The Brink? The Quiet Crisis Facing Britain’s Self-Care Industry’, it explores the financial insecurity that threatens the sector, revealing that 21% of salons in the UK run at an economic loss.

The research shares that an estimated two in five salons face closure in the next 12 months if they do not receive help, and uncovers ‘alarming realities’ such as businesses ‘under-pricing their services to appear affordable, yet overheads, materials and unpaid administrative work are reducing earnings to less than minimum wage’.

Focusing on nail technicians, data shows that those with back-to-back gel manicure bookings earn around £70 per treatment, on average, but this falls close to minimum wage when costs and unpaid admin tasks are taken into account.

“Without intervention, closures could drive unemployment, accelerate the ever-growing decline of the high street and threaten the wider UK economy,” a Timely statement reads. “The report calls for immediate action: financial literacy should be embedded into beauty qualifications, the sector must be recognised as an essential trade rather than a luxury, and microbusinesses must receive the support they need to thrive.”

Oliver Smith, Timely’s UK&I managing director, comments: “Our report reveals a stark picture of an industry on the brink, but the day-to-day realities won’t be a shock to the UK’s hair and beauty professionals.

“A fundamental pitfall facing these business owners is a distinct lack of financial literacy, and with that comes financial insecurity. By upskilling these professionals, giving them relevant education, actionable tools and targeted support, this doesn’t need to be the way forever. This sector is a resilient one and with the right intervention, we truly believe it will thrive once more.”

Training to support financial success

Timely and The Curve have further collaborated to offer a seven-part financial literacy course, available via Timely’s platform. It equips beauty professionals ‘with the skills to price services sustainably, manage profits and build resilient businesses’.

Sophie Hallwright, co-founder & co-CEO of The Curve, comments: “Financial literacy is not just a skill; it’s a lifeline. The beauty industry, predominantly led by women, is often undervalued and under-supported. By equipping professionals with financial knowledge, we empower them to transform their businesses and secure their futures.”

Access the seven-part course here.