Business / Covid 19

Covid-19: Hairdressers cut overheads until post-lockdown flurry

10:52 am on 12 April 2020

While hairdressers are hoping to be swamped once the lockdown lifts, smaller salons may need to consolidate to survive.

Photo: 123rf

New Zealand Association of Registered Hairdressers chair Niq James said the industry had essentially lost at least one rotation of clients, and therefore income, due to the alert level four lockdown.

Unlike their Australian counterparts, which were deemed an essential service, hairdressers and barbers in New Zealand had to closed their doors.

James said that was absolutely the right move both for workers and the public, but it came with economic pain.

"There's only a certain amount of hours you can stand on a salon floor, so if we think it's [the lockdown] going to be a four or five-week period, that's the average time that people have their hair cut," he said.

"So you've lost a whole rotation of clients in there, so you've lost a whole set of income. In that next five-week block you can't do double the amount of clients, because you've only got that same amount of time to do the work."

In the past, hairdressers and barbers had done okay during economic downturns as people's shrinking disposable moved from big ticket items, such as travel, to more manageable spends like a haircut.

James expected salons would be busy once the lockdown lifted.

"I think we will probably be quite busy," he said.

"There's the social aspect of it as well - some of it is just catching up with people - but they'll have their hair done as well."

However, he expected some smaller businesses might struggle coming out of the lockdown.

"Salon-wise we may find some smaller like-minded salons that join together under the one building so their overheads are cut," he said.

"The other thing is a collective of like-minded businesses getting together, so it might be a news agent, a cafe and a salon getting together."

All industries would need to adjust to the economic realities of Covid-19, and the beauty industry would not be exempt.

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