Did you know that the number of hair salons is decreasing?

New figures released last week showed that, for the first time, the number of salons offering just hairdressing has started to decline, with more salons closing than opening, especially over the last year. Over the same period, the number of beauty salons, nail salons and hair and beauty salons has risen, the report from the Local Data Company. But it's not all bad news. National Hair Federation chief executive Hilary Hall talks us through what the research means and her advice for making your hair salon thrive. Commenting on this trend on today’s BBC Radio 4 You and Yours programme, NHF/NBF chief executive Hilary Hall said: “Within our own membership of 5000+ hair salons, barbershops and beauty salons, we’ve seen the number of salons offering both hair and beauty rise steadily. “A few years ago, around a third of our members offered hair and beauty whereas today it’s 44%, almost half of our membership.  That’s why we set up the new National Beauty Federation to provide a one-stop shop for business support for all salons, whether they offer just hair, just beauty or both hair and beauty.” Beauty is expected to be the fastest growing sector over the next five years.  As well as an increase in salons providing beauty treatments, beauty retail is also expected to grow with supermarkets such as Sainsbury’s announcing ambitious plans to expand their beauty retail offering.  They are also capitalising on the growing trend for affordable vegan beauty products, particularly amongst young people, As it's increasingly hard for hair salons to compete against so many other salons in the same high street, it's important to diversify. Talking exclusively to Hairdressers Journal, Hilary says: "If salons get stuck in a rut, such as only catering for shampoo and set clients as mentioned in the programme, they risk getting left behind as those clients disappear. "With so much competition, it’s tempting to get into a price war, but then salons simply can’t cover their costs. So my advice would to avoid discounting and pay very careful attention to pricing. I would also look for opportunities to diversify and add value, especially with beauty treatments as demand is growing phenomenally." Hilary commented on the growth in barbershops and explained how they were a great example of businesses that are adapting. “We’ve also seen a big growth in barbershops, with many of them providing male grooming services for today’s more image-focussed male clientele.  It makes sense for hair salons to diversify and provide ‘added value’ services to time-poor clients who would pay extra for a manicure or a facial or having their eyebrows shaped when they’re already in the salon anyway for a hair colour.  It’s all about understanding your market and what clients want and would be willing to pay for.” “However, growing competition and a saturated market means that salons and barbershops are not only competing against each other for clients, but they are also competing for experienced and qualified staff, with salons up and down the country reporting recruitment difficulties," explains Hilary. "Added challenges such as rising employment costs and business rates are making it hard for them all to survive in the tough conditions they face on today’s high street.”