Key market challenges and solutions were uncovered at PROFESSIONAL BEAUTY’S recent salon and spa focus groups, including staff retention and how to tackle rising competition

Rising business rates, third-party booking platforms and fighting off the competition were among the key challenges discussed at Professional Beauty’s two focus groups for salon owners and spa operators.

Held at the Professional Beauty offices in Wimbledon, London, these events gave beauty business owners the chance to discuss the issues affecting their operations, as well as share proven solutions, in a private, informal setting.

What happened at the salon focus group?

Increasing business rates, staff retention and coping with “dirty tactics” from competitor salons are the biggest challenges facing beauty salons, according to findings from the salon owner event.

The event, which took place on January 28, brought together 12 salon owners to discuss the big issues affecting small businesses’ bottom line. Attendees ranged from senior salon owners who have worked in beauty for more than 25 years, to those whose businesses have only been open for nine months.

One of the biggest challenges discussed was how the big brands are treating their key salon accounts. One owner said she spends more than £50,000 a year with a skincare brand but, despite this big investment, doesn’t get access to exclusive offers, feeling like the company isn’t focused on the salon market anymore.

With dramatic increases in business rates and the National Living Wage in the past year, many stressed how they have had to work harder to keep their businesses financially on target, too.

Suggested solutions

Some are trying to increase their retail sales, in some cases to as much as 50% of turnover, but admit it’s a tough feat, especially with grey-market sales plaguing the industry. Others are looking to partner with, or employ full-time, an aesthetic nurse or medical practitioner in their salon to offer botox and fillers, as more clients are seeking out these popular procedures.

The issue of competition came up too, but in more troubling ways than just a price war. One salon owner said a competitor paid, via Google AdWords, to have their advert appear when clients searched for her business name, while another explained how a salon copied her brand and treatment menu, including everything from the logo to the interior design.

Both said they were “raging” at first, but not rising to the bait and staying true to their offering has helped clients see through the games and return to them more loyal than ever.

Staff recruitment and retention is a continuing issue, with the recruitment crisis still affecting salons up and down the country. One owner suggested that the solution could lie with the older market, with many mums wanting to return to the working environment but lacking the confidence to do so as so much focus is on hiring millennials and generation Z.

What happened at the spa focus group?

Third-party booking platforms and sustainability measures were the hot topics discussed at our spa directors’ focus group, which took place on February 3. Eight owners, who operate different sized spa businesses across the country, came together to discuss the key issues.

Attendees reported that, on the whole, business had seen a boost following the recent General Election, with an increased sense of stability improving consumer confidence and encouraging spend.

However, similarly to the salon owners focus group, recruitment and staff retention was identified as an ongoing concern. With fewer students coming out of college via the traditional route, many spa directors are now recruiting apprentices. However, they often struggle to place them in colleges, and rely on close personal relationships with local lecturers.

Many are also turning to mature applicants looking for a career change and have found these older therapists are typically more reliable and better at building a rapport with clients of a similar age. However, the group unanimously agreed that more needs to be done to inspire the next generation to enter the spa industry.

Suggested solutions

To boost staff retention, one spa director said they host an afternoon tea and a certification ceremony to celebrate therapists’ achievements. Many find that their therapists are less motivated by free products, so instead offer monthly treatments, time off from work or access to the spa facilities at quiet times as incentives.

Third-party booking platforms were also on the agenda. In the shift to online bookings, many spa owners want to gain more direct bookings from their clients, as thirdparty websites take a significant percentage and rarely lead to repeat custom.

Ideas around how to tackle this problem included introducing a loyalty scheme for customers booking directly, or offering “bounce-back” deals if clients rebook within 24 hours of their last visit. More complex dynamic pricing was also discussed as an alternative way to boost bookings in quiet mid-week periods.

With the war on single-use plastic ongoing, sustainability in spas was also a big talking point, with many directors sharing the efforts they have made to become more ecoconscious. One owner has invested in a more sustainable product house, whereas others have made simple swaps such as sourcing biodegradable wet kit bags or asking guests to bring their own flip-flops in an effort to reduce single-use waste. PB