In Spain, where the COVID-19 pandemic hit hard, turnover in the personal care sector decreased by about 40% in 2020. Hair and beauty associations have announced protests for action in more than 70 cities.
The Economic Impact Study of the COVID-19 crisis on the personal care sector has evaluated the sales by beauticians and hairdressers during the Christmas period. The numbers show a dramatic downturn, with activity down by 35.7% – a loss of €140 million.
The decline in turnover during the Christmas season has hit hard, given that this is one of the most important peaks in annual activity, along with the weddings and communions season, which begins from March onwards.
The survey collected almost 1,000 responses and discovered that the impact of the COVID crisis in the activity of SMEs, during 2020 compared to 2019, registered a decline of 38.8% in turnover – €1,552 million. According to the study, 37.7% of personal care SMEs closed their doors, meaning the disappearance of 18,096 businesses in Spain in 2020.
Following on from a campaign promoted by the Alliance to lower VAT on hairdressing salons and beauticians, 96% of the SMEs interviewed argue that lowering VAT to 10% would be very important in stemming the flow of lost profits resulting from the Pandemic. Therefore, the campaign is now due to intensify with protests and action to put pressure on the Spanish Government and get the PSOE and Unidas Podemos to fulfil their commitment to reduce the VAT, as was promised when they were in opposition.
The Creer En Nosotros and Plataforma de Peluqueros Unidos de España platforms, with the support of ANEIP and the group of associations integrated into the Alliance for VAT Reduction, are scheduling more protests in the near future: starting next Wednesday, January 20th, when at least 74 different cities in Spain will take part.
