Brexit Impact to Salons

Can Changes Ahead Present Opportunities for Hair and Beauty Salons?

The UK hair and beauty business appears to be almost back to normal after Covid. Although the pandemic is far from over, restrictions are being lifted, masks are now optional, and all venues, schools and businesses are permitted to run as usual.

It has been an incredibly uncertain couple of years – salon business owners have had to close completely, then re-open with distancing and waiting lists of up to 2,000 clients,1 only for further closures to come into force, changing guidelines and ongoing cancellations.

Unfortunately, while Covid might not be causing business interruptions in the near future, Brexit could. Recently, the media has been flooded with images of lorries being held up at Dover as the new trade deal that has been negotiated between the UK and the EU has added hours to the import process.

All goods being brought into the UK now need to provide declarations at the point of arrival as opposed to afterwards. Since 1 January 2022, all businesses moving goods into the UK from the EU now have to present a valid declaration about their goods and gain clearance from customs at the border. Without this, the goods will not be released into circulation within the UK.  

In addition to documentation declaring where the goods have come from (i.e. been bought from), businesses may also need to prove where the goods originated from (where they were produced or manufactured) to potentially benefit from a reduced rate of customs duty.

With leading professional salon brands imported to the UK from the likes of Spain, Israel and the US, to name just three source countries, this could provide a headache for hair and beauty salons who use these products every day – and also form part of their income from selling them to their customers.

The distributors of these brands will be liaising with their freight companies and insurance brokers to ensure the responsibility for these documents is known, and the risk caused by the delays are covered. However, any delays and additional costs could end up being passed onto the customer – i.e. the salon.

It is speculation at present. However, this is the ideal time to ensure you are protected against any delivery issues. A salon cannot function without haircare or beauty products. While alternative UK-based companies could be sourced if needed, you need to be sure that any time taken on this, and any loss of earnings or cost of replaced items are covered if goods are delivered too late for use.

It could also be a good time to look at how the rest of the year could pan out if we continue to open up. Small business owners may now have the freedom to recruit and train more staff, look into expansion, investigate beauty industry opportunities and plan some more adventurous marketing activity. A new generation of potential recruits will be looking for career opportunities in the beauty industry, so looking at your team and public perception could be beneficial while you audit your suppliers.

All of this costs, of course, so a secure salon insurance policy that covers all existing and potential risks needs to be implemented.

If you have any concerns about how your business could grow and adapt – post-Covid and through Brexit – get in touch with our specialist team. They will be able to advise you of any new potential risks, and how to best protect your business against them.

^{1 bbc.co.uk/business-53152952}