20% of hair & beauty businesses are making a loss, according to NHBF
By Chloe Randall | 29 July 2022 | News
The NHBF has released its findings of its latest State of the Industry survey, which took place between 27 June and 8 July 2022.
The findings reveal that after a tough two years for the sector, there are signs of recovery but the sector is still fragile due to the current cost of living crisis. With this in mind, the NHBF is calling on governments across the UK to continue to support the industry’s recovery.
Multiple Omicron COVID 19 variants led to staff shortages and client absences which interrupted the initial recovery that businesses had reported in September 2021.
The NHBF State of the Industry survey shows the following:
- 44% of businesses are now making a small or good profit (up from 30% in April). 36% are breaking even. However, one fifth of businesses (20%,down from 27%) are still making a small or substantial loss.
- Raising prices is now a consistent trend; 62% raised their prices over the last three months (up from 43% in April). A further 51% will do so over the next three months (down from 58% in April).
- Reliance on external support has reached its lowest point over the last two years but is still high at 50% of businesses (down from 58% in April) that are either partially or completely reliant on Government support.
- Recruitment intentions are showing slight improvements; in the next three months, 27% are definitely or likely to take on new staff (up from 17% in April).
- Over the last three months, 17% have cut back on apprentices (similar to 16% in April). More positively, one fifth (21%,doubled from 9% in April) were definitely or likely to take on apprentices in the next three months.
“It’s encouraging to see that two thirds (64%) of businesses are now confident of their survival which is up from 57% in April. But that still leaves a significant third (31%) who are not sure that they will survive until the end of the year,” says Richard Lambert, chief executive of the NHBF.
“With continued support from each national Government, further UK government support into the autumn and incentives for apprenticeships, we are confident that the personal care sector will play an important role in the UK’s sustainable economic recovery, the future of thriving high streets and community wellbeing.”