Are Barbershops - Hair Salons Struggling? Economic Pressures and Changing Styles

[Twiggy]

We've been hearing concerns about the viability of independent barbershops and hairdressers in the UK. Are you noticing a trend of closures, stores reducing their sq ft or relocating in your area - many going to work from home or home visits?

If so, what do you believe are the primary factors contributing to this? Is it primarily due to rising overhead costs or perhaps changes in consumer grooming habits? 

[Twpchair]

Not my field but I am usually 2-3 Weeks getting an appointment. 

[Twiggy]

The current 75% reduction on business rates for salons (bricks and mortar) will be lowered to 40%  reduction for salons . There’s a huge campaign as rising costs and NI (National Insurance contributions for staff paid for by the employer) face significant financial pressures. From April 1st every business faces this rate of employers' NICs set to increase 13.8% to 15%. This means business owners will have to pay more for each employee's earnings.  The threshold at which businesses start paying NICs will be lowered from £9,100 to £5,000. This will significantly impact businesses with part-time employees. 

[Twpchair]

Ouch!!! That is steep! I know my beautician works 3-4 days at the salon and 1-2 days at home. She is picky with her home clients which I get. I did it during Covid but now it’s so hard to get an appointment I book it for the next visit when I leave that day. I’m very picky who does my hair and I tip extremely well. Those are big hikes going on there! I don’t know what she pays for her chair or if it’s a percentage? I never asked her I guess. 

[Twpchair]

Have you noticed more mobiles, or do they come to you, or do you go to their house to pop up? Curious about that, as a few others posted, more and more are doing their own, and traveling. My son and daughter-in-law do this every 6 weeks and love it. They have to schedule before she leaves for the next 6 weeks, or it could be 10-12 weeks out. I did it multiple times during covid. I had zero issues with it myself. It cut my cost as well. I have long, thick hair, and it takes her a good 2 plus hours to cut, color, and highlight it. Then I also do the full treatment of blow drying and styling it. At the shop, she was in it was about a 200.00-ish range. At her place, right about half. I tip very well also. The rent, the cost of their supplies, and all the extras she had to pay were crazy. Her home, already paying the light bills, heat, etc. She could buy the products that she liked or the customer and not just what the salon sold. I would still be going to her if she hadn't moved out of state. The new one I'm going to now, I posted about earlier, is just ok. Hopefully, things will start to calm down in certain areas. Good luck to everyone!

[Doran]

I haven't seen any barber or hair shops close in my neighborhood and a bunch of retail shops have gone under over the last 90 days.  Those spaces are now being used as smaller service shops, like 2-3 stylists versus a larger shop of 10-12.  All are on RENT or CONTRACT instead of employee status.  I know that my space just sold to a new owner and they are tripling rents plus my insurance quadrupled when the building next door collapsed.  I do not plan to renew the lease and am looking to move into a different neighborhood.  

[rtfulk]

When I got my last hair cut my barber was telling me how slow Dec-Feb. was for him. He said he wasn't going to panic yet, because our area got the double whammy from Hurricane Helene and Milton and not as many snowbirds came down this winter because of that. I will ask him if it has picked up any when I go back.

[doc_choc]

No shortage of barbers where we are, but would agree that the overall coasts of running a business from a fix location are becoming cost prohibitive for many retail categories. I think there is also a lot of competition in the personal grooming category, I must have counted at least 10 hairdressers and barbershop on our high street, very competitive.

[Twpchair]

Our little community is a tourist attraction and a vacation/second home area. From summer to winter, we average 2k—12k in size. We have 2 beauty salons (mom and pops) and one chain. That's it, and forget about a walk-in at any of them. We could use about 5 more! 😆 

[doc_choc]

@Twpchair I'll send a couple of ours your way we have spare capacity 😁

[Twpchair]

I thank you, and just about every other woman in our surrounding areas also does! 😆 A true barber would be amazing if you have a couple of those as well! I believe our one left is in his 80s and only opens a few days a week. I can get my Shih Tzu faster in the spring (peak season) than I can, smh.

[Subport]

I have been noticing more mobile services. I have a couple of friends that call mobile barbers and they just come to their work / home to get their hair cut. I think with the younger generation, they value convenience over cost. 

[Twpchair]

Both my son and daughter-in-law have a beautician who comes to their home about every six weeks at 6:30 PM. They pay a good amount for the service, but it's convenient for them since they both have only one day off per week, which is already packed with activities. The beautician doesn't work on Sundays but makes house calls three days a week and is very selective about her clients. They truly love this arrangement. She is so busy that they schedule their next appointment at the end of each visit.