The National Hair & Beauty Federation (NHBF) predicts hair salon closures and massive job losses with increased mental health fallout across the hair and beauty industry if the Government doesn’t intervene with some kind of rescue package.
In the NHBF’s latest findings when carrying out a National survey conducted across hair and beauty salons and barbershops in the uk, the significant impact of the current covid restrictions on hair salons and barbers and the financial and psychological impact on hair salon owners and employees was escalating, as they see their empty salons running up massive bills as their debts escalated with no way of generating revenue.
The results will be put forward to help assist the case for more government financial help for hair salons and barbers as an industry that contributes vastly to our economy but which hasn’t up until now received any of the additional support measures offered to other sectors in the leisure and hospitality industries during the pandemic.
Some of the more arguable findings were:
• 1 in 8 hair salons and barbers were reporting redundancies were increasing by 13% as a result of the pandemic.
• with 56% not ruling out further lay offs without financial intervention when the furlough scheme ends. 1 in 9 (12%) were adamant that redundancies are inevitable
• 53% of salon owners had reduced employees hours to save costs. This rose to 61% when looking at the barbers sector alone.
• 62% were uncertain that their business would be able to last beyond the end of the financial year, with almost a third – 18% certain that business would cease completely
• 2 in 5 (38%) of hair salons were below break even In the hair salon and barbers interviewed and only 1 in 5 are simply existing just above breaking point
• Only 9% had received any financial assistance
• 96% couldn’t see themselves hiring new employees in next 3 months down over 20% industry wide compared to previous years
• 96% were unlikely to create apprenticeships despite incentives
The NHBF said, “The responses to the findings show that the future of hair salons and the barber sector has a poor outlook without financial assistance from the government.
• Without help, we will be fast entering the coming financial year with empty hair salons, significant unemployment and increasing mental health issues
As a face to face service sector, the hair salon and barber business have been affected heavily by salon closures and restrictions without the ability to adapt and generate profit through alternate means, such as online custom and the like.
With help the government can bolster current hair salons and barbers to ensure their survival during this uncertain time by increasing grants for hardship, reducing the rate of VAT and lowering business rates, extending this until further notice.
Those who have not been eligible for support previously need to also be included going forward.
The NHBF will highlight these issues faced by the hair and barbers industry and lobby to receive the help needed.