Surviving the Hairdressing Crisis: Overdue Salons and the Impact of Covid-19

2023-08-12 04:42:00

the essential Faced with a decline in attendance due in particular to a proliferation of establishments, many hairdressing salons have to go out of business. An accentuated crisis situation at the time of the repayment of loans guaranteed by the State during the Covid crisis.

Empty barbershops and distressed hairdressers. Considered “essential” during the pandemic, the profession is struggling to recover and customers, hit by inflationary trends, are skipping a new haircut.

Of the 100,000 hairdressing salons established in France, a fifth would be “overdue”, estimates Christophe Doré, president of the National Union of Hairdressing Companies (Unec).

He does not see this as a “crisis”, but rather a “difficult moment”. “There is inflation which impacts purchasing power, so there are fewer visits from the fairer sex”. He also points to rising energy prices.

40% increase in business failures in the sector

459 business failures were recorded in the second quarter of 2023 (including 323 judicial liquidation proceedings and 127 receivership) against 339 in the second quarter of 2022, according to a study by the firm Alteres.

Over the first six months of the year, there were 966 establishments in default (including 727 compulsory liquidation proceedings), an increase of almost 40% compared to the first half of 2022.

Christophe Doré nevertheless wishes to temper the figures which include both hairdressing salons and beauty salons. According to him, the phenomenon is not recent and the trend was already slowing down before the Covid crisis. “If we compare with the figures for 2018 and 2019, we must be on an increase of 10% to 20% of failures”, he estimates.

Post-Covid effect?

A trend accentuated, while many institutions must now repay loans guaranteed by the State (PGE) and pay charges that had been shifted. Measures put in place to relieve businesses during the pandemic.

Apart from inflation which has dealt a major blow to the wallets of the French, the president of Unec also says he has observed a post-Covid effect which has changed the habits of customers and slowed down the number of their visits to the hairdresser. “Teleworking has taken hold. People go to the living room less. If you don’t go to the office and you’re not visible behind your screen, you can afford to have a centimeter of roots, to push back two to three weeks your color. You don’t have to have the brushing done. Nobody will see it, “he analyzes.

Unec says in particular to note “a small drop” in turnover in “the technical part” (colors, wicks, discolorations) of around 2%. Hairdressers would also face, with online appointment booking platforms, customers who book and do not come. “It’s been a time slot without turnover for the show”, regrets Christophe Doré.

Too many establishments

Christophe Doré also points to too many salons in France. “Since the Covid crisis, there have been more and more openings. 100,000 establishments in total for France, that’s too many!”.

The current poor health of salons would then be explained by a “natural regulation of the market” when there were “only 80,000” salons in 2014. “There is not room for everyone!”, launches Christopher Dore.

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