Hairdressing and cosmetic establishments currently are almost PLN 49 million in debt, according to data from the National Debt Register (KRD). In February, the last month before the pandemic, their debt was almost PLN 11 million lower, so by November it had increased by 30%.
“We have been observing the growing debt of hairdressing and beauty salons for several years. Nevertheless, in 2020 there was a significant increase in this debt, exceeding 30%. It is almost twice as much as in 2019. Then it was 15% YOY” – said the President of KRD Adam Łącki.
“Among the companies in the beauty sector listed in our registry, as many as 96% are sole proprietorships. This is a very high percentage compared to other industries. However, in this business, small scale and localism help build relationships and gain loyal customers. And those in difficult times are worth their weight in gold and can help to rebuild the financial situation effectively, “added Łącki.
The largest increase in the debts of companies offering hairdressing and beauty services was visible at the very beginning of the pandemic. In just one month, from February to March, the amount owed jumped by 10%. In the following months, the pace of debt growth slowed down, recording wave jumps, but still none of them managed to reduce their debt. The lockdown period therefore left a permanent mark on the finances of the beauty sector.
The average debt of salons in November was 18.5 thousand. PLN. In February, this amount was almost PLN 5,000. PLN lower. Throughout 2020, average indebtedness grew steadily, while the number of debtors or liabilities fluctuated over the months, reaching the highest level at the turn of spring and summer.
Salons in Mazovia have the highest amount to hand over – they have to pay back over PLN 13 million. It is followed by Silesia (PLN 7.7 million) and Pomerania (PLN 4.2 million), it was also reported.
Salons have to settle with banks almost half of the debt. They are obliged to give almost 15 out of 49 million PLN to debt collection companies and securitization funds, and 3.2 million PLN to telecoms. Despite their own solvency problems, beauty salons and hairdressing salons are also unable to recover debts from their contractors.
“The beauty industry has PLN 1.49 million to recover from its debtors. However, this amount is over 30 times lower than their own debts. So it is not payment gridlocks and problems with receiving payments from debtors that are the main reason for its debt” – added the president of KRD.
