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News Industry reels from economic effects of pandemic As at the end of July 2020, approximately 200 registered beauty establishments had confirmed to the National Bargaining Council for the Hairdressing Cosmetology Beauty & Skincare Industry (HCBSBC) that they have closed as a result of the COVID-19 national lockdown, which saw salons and spas prohibited from operating for nearly three months. Frik Bekker, HCBSBC financial manager and acting CEO, points out that this is only a fraction of registered establishments. “However,” he continues, “with the information we are receiving, as well as the trends with the payment of contributions, we expect to see a drop in registered establishments of between 30% and 40% in the industry. This cannot be substantiated at the moment but we feel this is a relatively accurate estimate. “The Council is still receiving feedback from the industry on whether an establishment has closed due to COVID-19, is still closed due to current lockdown regulations, or is only intending on opening in the new year. Not all establishments have informed us of such and this is on an increase on a daily basis.” There are no comprehensive statistics for the total number of beauty establishments in South Africa because not all beauty establishments in the formal sector are registered with the HCBSBC, even though they are mandated by Government to do so. There are also beauty establishments operating in the informal sector that do not fall within the HCBSBC’s purview.
Job losses Elna Hagen, president of SAAHSP – the Professional Body for the Skin, Body & Nail Care Industry, comments: “Since the inception of online @ probeauty.co.za
COVID-19 and the lockdown, we realised that the industry faced imminent retrenchments, as well as business closures, which in turn unfortunately caused irreversible damage as far as jobs are concerned and led to extreme poverty. “As an organisation, SAAHSP is also seeing the enormous additional financial strains on businesses as they follow the necessary COVID-19 protocols in a high-risk professional environment during the quiet winter months. “At this stage it seems like some salons and spas have decided to stay closed for the time being rather than not being able to operate at a 100% capacity.”
Franchises The two largest beauty salon franchises in South Africa, Sorbet and Imbalie Beauty, each comprise of hundreds of establishments. Says Linda Sinclair, CEO of the Sorbet Group: “We have closed four stores. The store lease for one of these salons came to an end and the shopping centre is not viable to continue trading as they are going to be doing massive renovations, while the other three stores were
marginal before COVID-19.” CEO of the Imbalie Beauty Group (Perfect10, DreamNails and Placecol Skin Centres), Esna Colyn, confirms that while the majority of Imbalie salons have reopened, a few doors are yet to open. “We are working hard to assist our salons wherever possible, as some of them are trying to negotiate more favourable leases with their landlords,” continues Colyn. “It’s vital to make our businesses bulletproof for the future, and part of this is sustainable leases. In some instances, we have been able to consolidate two franchises within the same mall, into one salon. “Furthermore, Imbalie Beauty is in the process of launching a new division and as such, is repositioning some of its franchisees within this exciting new venture. “We need to remain positive and remember that we are only a month out of lockdown and in the middle of winter, so the market needs time to pick up. It’s now more important than ever before for the beauty industry to continue to consolidate, support and unite together,” states Colyn.
