Ashworth’s beauty salon business in January was down 22 percent from the previous year and has “dropped off from there,” he said.
A tanning salon attached to the property will remain open. Ashworth said 95 percent of the tanning salon’s business is from nearby University of Dayton students.
The U.S. salon and spa industry was considered recession-proof, but it has seen a downturn in recent months, according to national data.
The Professional Beauty Association’s Salon/Spa Performance Index for the third quarter of 2011 fell to its lowest level in two years, marking its second consecutive quarterly decline. The quarterly composite index tracks the health of and outlook for the U.S. salon and spa industry.
Salon and spa owners reported softer service and retail sales, as well as a “dramatic slowdown in customer traffic growth” in the third quarter, the association said.
In the U.S., about 70,000 hair care salons — 65,000 beauty salons and 5,000 barber shops — generate combined annual sales of about $19 billion, according to First Research industry report released in September.
The industry’s major products are hair cutting, hair coloring, nail care, skin care, and merchandise sales, according to First Research. Sales of hair care products provide from 5 to 15 percent of annual revenue, the report said.
The Dayton Daily News contacted a number of local salon owners, some of whom have seen year-to-year growth.
“We have been fortunate,” said Kathleen Lee, manager of Michael’s Salon & Spa in Centerville. “Last year was up over the year before, and this year is up over last year to date.”
Affinity Salon & Day Spa in Washington Twp. also has seen year-to-year growth in service and retail sales, said Peggy Gallousis, the salon’s manager. She attributed the increase to customer word-of-mouth.
Business is up from last year at Nora’s Design Group in Kettering, said owner Nora Perez. “Last year was very scary around Christmas time,” she said.
“Granted, it’s not like it was five years ago, but neither is the city,” Perez said.
Hausfeld’s Salons and Spa in May merged its location at The Greene in Beavercreek into its Springboro location at Marketplace at Settler’s Walk. A Hausfeld’s representative did not return a call seeking comment.
Nora’s Design Group in May 2010 consolidated three area locations into one salon at the Town & Country Shopping Center in Kettering. Perez said the move allowed her to reduce expenses such as utilities.
Ashworth purchased his salon, formerly 23 Second St., in July 2005. Business was good until the second half of 2009, when sales and traffic started to decline, he said.
“NCR leaving, that really didn’t help me at all. That was a lot of my business,” Ashworth said.
Ashworth’s, which charges $29 to $39 for a haircut, also felt the impact of low-cost salon chains, he said.
Local salon officials said some customers are waiting longer between appointments to stretch their dollars further.
“Where they used to come in religiously every three to four weeks, now they are coming in every six to eight weeks,” Ashworth said.
Customers also are attempting to save money by doing their own hair. “Some people are trying to do their own color at home, but then they end up coming back because it never looks right,” Perez said.
Hair care remains an important part of a person’s overall appearance, which many people will try to maintain, even during difficult economic times, Lee said. “Especially if someone is coloring their hair or you have a shorter hairstyle, the maintenance on those still needs to be done,” she said.
Nationally, only 36 percent of salon and spa owners said they expect economic conditions to improve in six months, down sharply from 50 percent during the second quarter, according to the Salon/Spa Performance Index. That represents the lowest level in the index’s 11-quarter history.
Locally, most salon officials said their overall outlook is positive. “We are doing fine,” Lee said.
Contact this reporter at dlarsen @DaytonDailyNews.com.
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