Source : 'HBW Insight'
US salon services in the 2020 second quarter generated just over a third of revenue seen in the comparable 2019 quarter, according to consulting and research firm Kline.
The result shows the crippling effects of COVID-19 and associated lockdowns implemented across the country in mid-March through most of May.
Optimistically, June service revenues were nearly 76% of the total in the prior-year period as salon traffic picked up, contrasting sharply with April when service revenues were “essentially non-existent,” Kline says.
“Services that are rebounding the best are those that are more high-tech and require the expertise of a professional stylist,” says Paula Gottdiner, Kline PRO project manager. She notes that hair-coloring revenues in June increased nearly 2% compared with the prior-year period. ()
Hair straightening/smoothing with a haircut, and thinning hair treatments – neither easily performed by consumers at home – also are reuniting salon professionals with their clients.
Services account for some 94% of all salon revenues, Parsippany, NJ-based Kline says.
In a 9 October release and accompanying infographic, Kline notes that professional hair product sales also jumped in June as COVID lockdowns thawed and consumers tentatively reemerged. Hair product sales for the month – which may include online sales – reached 98% of the June 2019 total, the firm says.
Salon sales of shampoos and conditioners in June actually outpaced the year-ago period, up 6% and 12%, respectively, according to Kline. ()
The sector benefited in April from sales of hair-color maintenance products and curbside pickup options at a time when most salons were shuttered. Such products have always dominated salon retail sales, but increased their share of the market to 34% in the second quarter, peaking in April at almost 44%, Kline says.
“Data shows that kits and multipacks of items for color care surged in this timeframe to 134% over YAG as stockpiling products became a reality,” the firm notes.
Gottdiner says, “Based on what we are seeing with Kline PRO, the salon industry is on track to recover. We are in the midst of processing the transactions from the third quarter and expect to publish the data in the next couple of months. It will be interesting to measure the recovery and be able to analyze both the product and service components of the industry.”
Kline Pro is an interactive salon retail product and services database based on actual transactions from a nationally representative sample of nearly 3,000 salons across the US, the firm says.
The platform offers category, brand and product-level data on a quarterly basis.
Kline also plans to roll out data and insights on Canada in 2021.
By Ryan Nelson