Personal pampering keeps priority status during recession
Shelly Sconce has been getting spa treatments at Aesthetic Studio by Nails Only for five years now, and she’s not about to let the recession put an end to her personal pampering.
“I really love it; it’s a form of therapy,” she said. “In an economic downturn, it ultimately comes down to prioritizing.”
Sconce, who lives in Columbia and teaches at a high school in Callaway County, said she would rather tame her purchases of personal products such as purses and shoes than stop spending money at the salon for permanent cosmetics, lash extensions and nail services.
Mary Piper, who owns Aesthetic Studio and has been in the salon industry for three decades, said business has doubled since she opened in 2001. In Columbia and across the country, salon services so far seem to be recession-resistant, according to industry statistics.
Gordon Miller, executive director of the National Cosmetology Association in Chicago, said the industry nationally is not suffering a decline. In fact, as he told the Franchise Times, “Many (people) are making a decision to invest in personal services.”
According to the Department of Labor, there are approximately 75,000 salons in the expanding industry, producing nearly $16 billion per year. Labor Department estimates project that, by 2012, the industry will have 865,000 workers, a 14.7 percent increase in a 10-year period.
Piper, who moved the salon to The Broadway Shops on East Broadway 15 months ago, has seen recessions before and lived to tell the tale.
“In 30 years of doing business I have always done well in tougher times, even when other businesses have not,” she said. “It’s because this is a service-based business, and that means people are here to feel good about themselves. Maybe they can’t go out and buy a new car for $30,000 or do a $25,000 home renovation, but they can come in and get their nails done or have eyelash extensions.”
Piper acknowledged, however, that the salon industry had fewer clients after the terrorist attack on 9/11 when “people did not want to go out, and they did not want to spend money. They were scared. It was then that I realized I needed to expand. Now, we offer a much broader variety of service from facials and waxing to permanent cosmetics and spray tanning.”
In the last year, Piper added an additional nail technician and aesthetician to her staff, and she plans to add another technician in the next few months.
“Fifty percent of my clients have their nails done and then something else,” Piper said. “They were original nail clients and then branched out. They are here to feel beautiful, and even with less money in the bank, that will always be a priority for women.”
David Orr of David the Salon also said personal care seems to be one of the last expenses to be cut from personal budgets. Orr said business at the salon, which opened in 1994, has remained level during the recession, and he expects an upswing with the warm weather months.
“People need to get their hair cut,” Orr said. “They still need to feel good about themselves, look pulled together and look professional. That’s why salons most often don’t feel the hit of a recession.”
To Orr, it makes perfect sense. “Instead of spending an expensive weekend away, people will come in to get a fabulous haircut or manicure and pedicure,” he said. “Maybe they will stretch the time between visits, but they will still keep coming back.”
At Cosmetology Concepts, a local beauty school, Director of Education Bonnie Roberts said she has not seen a decrease in enrollment and feels the industry will continue to be strong.
She said the school is fully enrolled with its maximum of 50 students and has a waiting list for spots. The training appears to be worth the wait. “Our students have not had any problems getting jobs even in the current market,” she said.
Sarah El-Toumi, owner of Salon Nefisa since 2004, said some clients have spaced out their appointments and spent slightly less on luxury salon products. But “for the most part, business has been strong, and my employees are happy to be in a place where they know they have job security when they see others around them being laid off.”
There’s also a social element, Piper added.
“Salon professionals are people that clients build relationships with and talk to,” she said. “Many people don’t want to give that up.”
Another reason for steady business in the salon sector stems from a need to remain professional, said longtime salon owner Christy Huggans of The Strand. Huggans says she has seen very little difference in her bottom line.
“People are just not willing to put appearance low on the totem pole,” she said. “A good cut or color can last six weeks, and people want to maintain their professionalism through their outward presentation. We have a lot of professional clients, and they are not willing to compromise this. Salon services, from my experience, are really one of the last things to go.”