The British High Street is getting a makeover – in a literal sense – as the number of independent “beaut-economy” businesses will increase by 7,852 outlets in the next five years, the highest level of increase of any business sector on the high street. As a result, there will be 56,484 independent hair and beauty outlets across the nation by 2023.
This equates to an increase of 16% in the number of hair and beauty outlets by 2023 (from 2017), according to the Shop Small research carried out by American Express and retail analysts, GlobalData. Hair and beauty is one of several key sectors contributing to growth of independent retailers on the high street.
This growth is being driven by the rise in the sums consumers are willing to spend on their appearance. American Express Shop Small found that the nation spends £7.62 billion on independent beauty services – and these retailers have been quick to respond to rising demand.
Increases in consumer spending in the “beaut-economy” are particularly notable within the millennial generation (22-36 year olds). While those aged over 37 say they use hair salons and beauty salons on average 9 times per year, millennials say they use such services twice as frequently – making on average 19 visits each per year. Overall, the millennial generation account for more than a quarter (27%) of all spending in hair salons, barbers and beauty salons, spending £281 each annually on these services.
The research comes ahead of Small Business Saturday, of which American Express is the founder and principal supporter. Taking place on 1 December 2018, thousands of retailers, dozens of local councils and business groups will encourage the nation to shop small ahead of the festive season.
With the Christmas party season in full-swing, it’s a period of time when beauty retailers expect to see a boom in sales. American Express and GlobalData examined trends in openings over the last five years and ran research amongst 2,250 consumers to better understand current attitudes and behaviours to develop a forecast that paints a positive outlook for the sector.
- Within the ‘hair and beauty’ retail sector as a whole, the research found that beauty salons (which include brow bars, waxing salons and massage) as well as nail bars are predicted to experience the greatest growth in terms of numbers of outlets (with 2,810 more on British high streets by 2023).
- Independent hair salons have also grown – spurred by the rising trend for blow dry bars and specialist haircare retailers – with 2,568 more outlets predicted to appear on the British high street in the coming five years.
- While “beaut-economy” retailers tend to serve a female clientele, men too are supporting the boom. American Express found that there will be 2,137 more barbers in the UK in 2023.
Caroline Bouvet, VP at American Express, said: “Independent retail entrepreneurs were early to spot the opportunity to offer a range of beauty services to consumers, from waxing and weaving to braiding and beard trimming. The beauty economy is a growing part of our high streets and demonstrates how quick independent retailers are to adapt to shifting demands from consumers. With our passion for grooming booming, we hope everyone will remember their local independents by shopping small this Small Business Saturday and beyond.”