In January 2021 we have seen total industry revenue decrease by 15% when compared to December 2020, while this is quite normal as the festive season comes to an end and majority of South Africans return to work what stands out is that total revenue has decreased by 32% in January 2021 when compared to January 2020. The partial level 3 lockdown from 28 December 2020 and lifted on 2 February 2021 has had a huge effect on the industry as a whole and seen us backslide to August/September 2020 levels. On average businesses saw 34% less client visits which resulted in 23% less retail revenue and 33% service revenue. The clients who did visit spent on average 11% than they did a year ago. The hair industry is fairing slightly better than the beauty industry, it has also been more consistent over the last 7 months. Staff losses have been greater in the beauty industry with an average of 3 less therapists per location vs the hair industry of 1 less for the month of January 2021.
The effects of normal seasonal decreases and a month in lockdown are plain to see. Some business will not be able to sustain the loss in revenue and close their doors, this in turn will create opportunities for the businesses who are able navigate through these challenges as well as entrepreneurs and groups looking to acquire running concerns.
These stats are drawn from the ESP client base that make use of our Business Intelligence service. These businesses owners are actively involved in their businesses and use the BI to track and understand the trends which allow them to formulate and implement strategies that will make a meaningful difference to the bottom line.
To find out how to implement strategies to improve your revenue and monitor the results contact the ESP Connect team email@example.com.
Learn more about ESP by visiting their website HERE.