New research by nhf and hj offers industry insight

In an exclusive survey that offers a candid insight into our industry, The National Hairdressers’ Federation, in partnership with HJ and in association with Salon Supplies, has been asking salon owners and managers for their views. One of the overriding findings of the survey is that the majority of respondents report either a significant (15%) or slight (39%) increase in turnover over the past 12 months, with 28% reporting no change. After five years of economic downturn this is a promising result – only 3% reported a significant decrease in turnover. Another indication of a return to confidence among salon owners and managers is their plans regarding employment, with a 53% stating that they intended to either significantly (7%) or slightly (46%) increase the total number of staff in their business. Only 4% intended to reduce the size of their team. Also good news for team members, and a positive indication of the state of the market, came from 31% of respondents who said they intended to make pay increases over the next 12 months. Paul Curry, NHF’s President said: "This is ground-breaking research and our thanks go to all the salon owners who shared detailed information about their businesses with us. It reveals a fascinating picture of trends such as more late night opening and offering a wider variety of services. It also gives an accurate picture of recruitment plans, salaries, treatment costs, average bills and product purchasing. Salon owners are worried about profits, business rates, National Minimum Wages, Apprenticeships and pensions – topics the NHF helps its members with by providing information, training or campaigning. It’s significant that half of all the salon owners surveyed were NHF members who were more aware of important issues affecting their businesses." The survey also asked respondents to talk about issues affecting their business. Responses revealed that there are still a myriad of obstacles and challenges faced by salon owners and managers. Here's a selection of their concerns: "Employing knowledgeable staff. The government education schemes do not train the young sufficiently. The real flair for hairdressing is missing." (Salon owner, South East) "The demands of the workplace pension initiative will put unacceptable burdens on the time we are willing to dedicate to the business." (Salon owner, Midlands) "I struggle to pay my bills due to VAT. I put my salon up for sale because of this." (Salon owner, North West) "I have rent reviews on both salons in the next year. Both have indicated ‘significant’ increases which will be hard as, like most salon owners, there is little option to increase prices significantly." (Salon owner, Yorkshire and Humberside) Said Jayne Lewis-Orr, executive director of HJ: “This research, in association with the NHF and Salon Supplies, provides an invaluable snapshot into our industry. Many of the findings suggest a real return to confidence following several difficult years. The results also reveal some elements of running a salon business remain universally challenging – notably the demands of government legislation. Information is power, and knowing more about our industry will help HJ and HJi continue to deliver the most relevant business advice and information to its readers.” The report also offers a fascinating insight into the current structure of the UK salon industry. Key findings include: • A quarter of respondents own their salon premises • The average number of employees is five full-time and four part-time • There is an average of eight chairs per salon • The average charge for a cut and finish is £35.59; cut and colour, £89.54; and a blow dry, £20.70 • Prices are generally higher in London and the south east and lowest in Yorkshire • Average wage for a junior stylist is £10,219, with a senior stylist earning on average £18,705.