Hair Salon Industry

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Economic Snapshot of the Salon and Spa Industry

June 2011

Salon Industry Snapshot  The salon and spa industry is a vibrant and growing component of the U.S. economy, with more than 900,000 total establishments and annual sales of nearly $40 billion. Salon Establishments With Payroll Employees 2009 Establishments 2009 Sales Non-Employer Salon Establishments* 2008 Establishments 2008 Sales

88,876 $21.2 billion 824,119 $18.8 billion

Source: Bureau of Labor Statistics, U.S. Census Bureau; 2008/2009 figures



The salon and spa industry registered steady growth over the last decade, with the strongest gains seen in the non-employer sector. The number of non-employer salon and spa establishments increased 72 percent in the last decade, while their sales jumped 116 percent. In comparison, the number of employment-based salon and spa establishments increased 11 percent over the last decade, with their sales rising 47 percent. Salon Industry Establishment and Sales Growth Over the Last Decade Employment-Based Salons versus Non-Employer Salons 125% 116%

100% 72% 75% 47% 50%

25% 11%

0% Employment-Based Establishments Employment-Based Sales Non-Employer Establishments Non-Employer Sales

Source: Bureau of Labor Statistics, U.S. Census Bureau *A Non-Employer Establishment is a business entity that has no paid employees. For data purposes the federal government counts each distinct business income tax return filed by a non-employer business as an establishment. As a result, an individual such as an independent contractor could be classified as a non-employer establishment. Non-employer businesses may operate from a home address or a separate physical location. Examples of non-employer establishments in the salon industry could include 1) a small salon business owned and operated by one individual, where this individual provides all of the services, 2) a salon business of any size that does not have regular paid employees, but may have independent contractors working in their establishment, 3) an individual that leases a chair as an independent contractor, 4) an individual that cuts hair out of their home, and 5) an individual that provides salonrelated services as an independent contractor in the entertainment or fashion industries.

Professional Beauty Association

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Economic Snapshot of the Salon Industry

The Salon and Spa Industry Outperformed the Overall Private Sector During the Recession  The Great Recession of the late 2000s took a tremendous toll on the nation’s private sector. At the depth of the recession, the national economy was losing tens of thousands of businesses each quarter. Between the fourth quarters of 2008 and 2009, the national economy experienced a net loss of more than 92,000 privatesector business establishments – a decline of one percent. In comparison, the nation’s salon and spa industry performed relatively well during the recession. Although growth in the number of employment-based salons and spas slowed during the recession and briefly turned negative, the declines were much less severe than the overall private sector. Between the fourth quarters of 2008 and 2009, the salon and spa industry experienced a net decline of only 130 establishments – or just 0.1 percent. Salon and Spa Industry Outperformed the Private Sector During the Recession Number of Establishments with Payroll Employees: Salons/Spas vs. Total U.S. Private Sector Percent Change From Same Quarter in Previous Year 2.5%

1.9%



2.0%
1.7%

1.7% 1.4%

1.6%

1.4% 1.3% 1.0%

1.4%

1.5% 1.0%
0.6% 0.7% 0.6%

0.5%
0.0%

0.2%

0.0%
-0.1% -0.1% -0.4% -0.7% -0.9% -0.2%

-0.5% -1.0% -1.5% 08:Q1 08:Q2 08:Q3 08:Q4 09:Q1 09:Q2 09:Q3 09:Q4

-1.0%

-1.0%

10:Q1

10:Q2

10:Q3

Employment-Based Salons and Spas

Total Private Sector

Source: Profession Beauty Association analysis of data from the Bureau of Labor Statistics

Professional Beauty Association

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Economic...
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