National Hair & Beauty Federation bulletin Shows Mixed Growth in Hair & Beauty Industry
The latest Industry Statistics bulletin from the National Hair & Beauty Federation (NHBF) reveals an evolving landscape for the hair and beauty sector, with barbershops the fastest growing retail category.
Hair & beauty businesses have grown by 1,898 units since H1 2023, with the total market now made up of 63,824 businesses compared to 61,926 in 2023. However, hair only experienced a slight 1% growth over the last five years, marking the slowest growth in the sector.
In H1 2024, a net loss of -239 units was observed, although this was a notable improvement from the -604 unit drop in 2023. High street locations, traditionally the backbone for hair salons, have seen a significant decline in occupancy, with a reduction of 982 units over the last five years. However, barbershops continue to thrive, maintaining their position as the fastest-growing category with an impressive five-year growth of 5,791 units.
Vacancy rates for hairdressers have increased by +0.5%, while barber vacancy rates remained stable. This should be put into context with the rest of the high street and the national vacancy rate of 14.0%, which has remained level since 2022.
More positively, the report, created from data supplied by the Local Data Company, a Green Street Company, also highlights that hairdressers boast the longest average length of occupancy, increasing to 7.8 years from 7.3 in H1 2023. Independents dominate the industry, making up 98% of hairdressing businesses, reflecting the strong entrepreneurial spirit driving growth despite challenges.
This sector is evolving, and the trade must pay attention to shifting demands and locations, especially as larger brands like Barbershop by Timpson lead the growth in the category, adding three new stores this year. Blue Tit and Medusa saw the second highest growth, both adding three additional stores to their portfolios since H1 2019.
Caroline Larissey chief executive of the NHBF says, “Despite an unbelievably challenging context our sector is growing, albeit very slowly for hair. Salons are an integral part of all our communities, providing a hub for social interaction as well as a break from the pressures of everyday life. Hair & beauty professionals are confidantes, trusted with spotting the signs of illnesses such as skin cancer, mental health issues such as depression, particularly barbers and male clients, and domestic abuse.
As a nation we need to collectively respect the importance of our sector, both for its financial contribution to the economy and to the country’s well-being. To secure its successful future we need to recognise and support hair & beauty roles as viable and career options for young people.”
The NHBF is constantly looking at ways to support Members to have profitable businesses, whether they are a salon or single operator and have introduced Business in a Box to provide a step by step guide to starting, maintaining and growing. This includes worksheets, templates, and checklist for the requirements of operating a safe and legal business as well as advice and guidance on all aspects of futureproofing and running a successful business.
For more information about how Business in a Box and the NHBF can help your business please visit: NHBF
@nhbfsocial
