Beauty Salons

Senior government figures believe that hairdressers will not be able to open while the pandemic is still happening, which has been predicted to last through the summer. Other establishments, such as nail salons or beauticians, are believed to be in the same boat, and therefore will not reopen for months yet.

Heart UK, April 2020

Homecare

Increased demand for staff

Cera Care

A per Business Live UK, March 2020,

Cera, which was founded in 2016, plans to increase its workforce six-fold from 2,000 to 12,000, with its new staff ready to start work in just ten days through its online training programme. It expects a surge in demand as an estimated nine million Britons, aged over 70, face weeks of self-isolation to protect themselves from the virus. Many jobs will also be created in Derbyshire, Old Stratford, Nottinghamshire, Staffordshire, Cumbria, Lancashire, Wiltshire, Essex, Kent, and Abercynon (Wales).

Home Instead Senior Care

As per Homecare UK, April 2020,

Home Instead Senior Care UK is looking to employ a further 3,000 individuals. Home Instead has over 200 offices across the UK, and delivered over six million hours of care last year, assisting over 21,000 clients.

Caremark

As per Homecare UK, April 2020,

Caremark Limited has over 100 offices over the UK and supports 14,000 clients who require regular care. The home care agency is currently looking to recruit 2,000 staff.

Financial Challenges

As per BBC, March 2020,

Care companies fear bankruptcy.

Care cash crisis

• In the current situation, home care companies expect to have more people needing care and will need to train extra staff as some will not be able to work if they become ill.
• The UKHCA (UK Home Care Association) says social care companies not only urgently need extra financial support from the government, but also require changes to the way local authorities pay them so they “don’t run out of money.”

Funeral Activities

As per Ibis World, April 2020,

Funeral activities will see a surge in demand as the death toll rises in the UK.

Highlights

• Hairdressing and Beauty Industry operators are expected to be supported by stable demand for more basic beauty treatments, such as manicures and facials while facing increased cost pressures (Ibis World, 2021[1]).
• Coronavirus-related deaths are expected to decline in 2021 as more UK citizens get vaccinated, weighing on the demand for funeral services (Ibis World, 2021[2]).
• The £190 billion additional lockdown savings are expected to support higher consumer demand for health and wellness services over the five years through 2026-27 (Ibis World, 2021[3]).

Key Developments

Hairdressing and Beauty Treatment: revenue is expected to recover in 2021-22, supported by the easing of COVID-19 restrictions

The repeated government-imposed closures of non-essential establishments, including hairdressers and beauty salons, aimed at tackling the spread of the coronavirus pandemic are expected to have weighed on industry demand in 2020-21.

The industry is expected to be supported by stable demand for more basic beauty treatments, such as manicures and facials. Many operators are also likely to benefit from a growing number of men using their services, which will drive demand and revenue growth in the next five years. However, industry operators are expected to face increased cost pressures due to the introduction of customs checks for UK-EU trade, the implementation of the points-based immigration system, and further increases in the National Living Wage (NLW) (Ibis World, 2021[4]).

Funeral Activities: A lower number of deaths related to COVID-19 is expected to reduce revenue in 2021-22

The COVID-19 (coronavirus) pandemic has increased the demand for funeral services in 2020-21. According to the Office for National Statistics (ONS), the number of registered deaths reached approximately 647,000 in 2020-21, compared with about 530,000 in 2019-20, representing a growth of 21.8%. This increase can be attributed mainly to coronavirus-related deaths.

Over the 23 weeks through 12 September 2021, the average number of deaths registered is believed to have declined by 18.2% to approximately 9,700 per week, according to the ONS, which is being attributed to the reduced number of coronavirus-related deaths in the current year. Coronavirus-related deaths are expected to continue declining in the current year as more UK citizens get vaccinated, weighing on demand for industry services (Ibis World, 2021[5]).

Health and Wellness spas recovering gradually with future growth potential

Government restrictions on all business practices were lifted on 19 July 2021, allowing industry establishments to reopen without restraints on services or capacity. As a result, industry revenue is expected to return to growth over 2021-22, although it remains below pre-pandemic levels. In addition, inbound tourism is anticipated to remain low over the same period, as international travel is expected to be restricted during the remainder of the year, constraining demand for industry services.

Nevertheless, according to the Office for National Statistics, UK households accumulated approximately £190 billion in additional savings during lockdowns over 2020-21. This is expected to support higher consumer demand over the five years through 2026-27 (Ibis World, 2021[6]).