News

Reduced VAT rate key measure in Budget 2021

A range of hair and beauty industry supports have been included in Budget 2021, which was announced by the Government on 13 October.

Among the key measures to be introduced is a reduction in the VAT rate for the hospitality sector, which includes hairdressers. From 1 November, the rate will be cut from 13.5% to 9%, until the end of 2021.

Businesses that are forced to close temporarily due to Covid-19 restrictions will be eligible to receive up to €5,000 per week. This payment will be based on their average 2019 weekly turnover. There will also be a three-month rates waiver extension to December 2020, while self-employed tax credits will increase from €1,500 to €1,650.

According to the Minister for Finance Paschal Donohoe, the country will not see the positive economy of 2019 again until at least 2022, but the weeks and months ahead will be steps towards a recovery. “We will prevail, and we will come through this,” he said. “And from the ashes of the pandemic, together we will build a stronger and more resilient Ireland. Budget 2021 is a bridge to that future.”

The Irish Hairdressers Federation welcomed the reduced VAT rate and other Budget supports. “We are pleased that the Department of Finance took on board our pre-Budget submission. These are vital supports to local economies, and provide a much-needed jobs boost to small towns and villages across Ireland. As we saw during the lockdown, hair salons play a crucial role in local communities, and it is good to see this being recognised by the Government.”

Revenue accelerates monthly EWSS payments date

Revenue has brought forward the date of payment for Employment Wage Subsidy Scheme (EWSS) supports to eligible employers.

In September, the Irish Government replaced the Temporary Wage Subsidy Scheme (TWSS) with the EWSS. The EWSS was due to expire at the end of next March, but as part of Budget 2021, it’s now in place until the end of 2021.

Revenue recently confirmed that all monthly EWSS payments, due to eligible employers, will be made as soon as possible after the fifth day of the following month.

The accelerated payment date aligns with the availability of the monthly Employer PAYE Return Submission Statement, which can be accessed through the Revenue Online Service.

“Bringing forward the EWSS payment date continues Revenue's supportive approach to businesses during the current crisis,” said Orla Fitzpatrick, head of Revenue's medium enterprises division. “Monthly EWSS payments will be processed as soon as possible after the fifth of the following month. It is really important that employers make timely and correct payroll submissions, as they will now only have the opportunity to make any necessary corrections before the subsidy is paid, instead of up until the payroll return filing date of the 14th of the month.”

Irish Government publishes Plan for Living with Covid-19

The Irish Government recently published its Resilience and Recovery 2020-2021: Plan for Living with Covid-19. The plan has been drawn up as Ireland moves from a short-term emergency response approach, to a medium-term approach to managing risk and repairing the damage that Covid-19 has inflicted on society.

A Framework for Restrictive Measures consists of five levels, with each one having a number of measures designed to help lower the transmission of Covid-19. It also sets out what is permitted at that moment in time.

The hair, beauty and spa sector can remain open under Level 3

The aim is to allow society and businesses to be able to operate as normally as possible, while continuing to suppress the virus.

Ireland was at Level 2 when the plan was published; however, from 6 October, all counties were placed on Level 3, due to the rising numbers of Covid-19 cases. Following this, Cavan, Monaghan and Donegal were moved to Level 4.

The hair, beauty and spa sector can remain open under Level 3, as the document states that hairdressers, beauticians and barbers ‘may remain open with strict adherence to sectoral guidance on protective measures’. Spas can remain open also. A move to Level 4 or Level 5 in any county means that all salons and spas have to close.

The Government has also reminded the industry about the importance of face masks, which should be worn by both staff and employees. The Department of Business, Enterprise and Innovation urged salons that are open around the country to redouble their efforts to make sure face coverings are being used correctly at all times.

Sisu Aesthetic Clinic opens new Cork branch

Sisu Aesthetic Clinic has opened a new branch in Douglas in Cork, which is the company’s eighth clinic in just under two years.

Sisu is a chain of doctor-led aesthetic medical clinics that aims to bring ‘bespoke patient care’ to the industry. With clinics in Cork, Dublin, Limerick, Belfast and Killarney, Co Kerry, the The company brand has teamed up with MyCorkGP for its latest venture. MyCorkGP is the largest GP practice in the city. plans to launch 20 medical-retail clinics on the East Coast

Founded in 2018 by Cork tech entrepreneur Pat Phelan, along with brothers – and doctors – Brian and James Cotter, Sisu is now also planning on expanding into the US. It was originally aiming for an expansion into the UK; however, those plans have been scrapped.

The company plans to launch 20 medical-retail clinics on the East Coast

The company recently raised $5.5m (€4.6m) from a number of investors, including Greycroft Partners, a venture capital firm that previously backed Gwyneth Paltrow’s Goop.

According to reports, the funds will be used to enter the US cosmetic clinics market, and standardise ‘facial feature’ pricing for lip, chin, under-eye, cheeks and brow treatments.

Sisu will also offer treatments such as anti-wrinkle injections, dermal and facial fillers, laser, and teeth whitening. Initially, the company plans to launch an e-commerce platform, and 20 medical-retail clinics on the East Coast.

Sisu closed its clinics at the beginning of the Covid-19 pandemic in March, and all its doctors temporarily returned to work on the frontline. Co-founders Dr Brian and James Cotter took up roles in St Vincent’s Hospital in Dublin and the Mercy Hospital in Cork.

Liz McKeon awarded for empowering female entrepreneurship

Salon business expert Liz McKeon has been awarded the Business All-Star Thought Leader in Empowering Female Entrepreneurs accreditation. This standard mark for local businesses is overseen by the All-Ireland Business Foundation. The foundation’s adjudication panel is chaired by Dr Briga Hynes of the Kemmy Business School at the University of Limerick, and Kieran Ring, CEO of the Global Institute of Logistics.

“My accreditation makes me feel very acknowledged, and happy to see that female entrepreneurship is being so highly recognised, and it’s good to know that I've played a small role in that,” said McKeon. “This award is an independently verified standard mark for indigenous businesses, based on a very rigorous selection criteria. I didn't feel I was in competition with anybody else, except myself. It is very empowering to receive recognition within my own industry, and recognition in relation to the importance of female entrepreneurship. I would like to use this award to continue my work in assisting women in business. Given the challenges of 2020, it proves how important it is to remain positive and focused on the opportunities.”

Going for gold at OMC Stylist Awards 2020

Cork stylist Wayne Lloyd has won gold at the OMC Stylist Awards 2020 in the Ladies Trend Cut category.

Lloyd owns Wayne Lloyd Hair, which has three salons in Cork city, Bandon and Ballydehob. With the Covid-19 travel restrictions in place, the awards ceremony took place online, and Lloyd created his winning Vidal Sassooninspired style in his Bandon salon. He then presented it virtually with video and images to the OMC judges, who praised his ‘precision and mastery of the classic bob style cut’.

With over 30 years’ experience in the hair industry, Lloyd works full time in his salons, while also teaching, competing and directing regular photographic shoots for his Wayne Lloyd Creative Collections. He has travelled all over the world teaching,and is the vicepresident of the Hairdressing Council of Ireland and a member of Habic’s advisory board.

OMC is the largest professional hairstylists’ organisation in the world with over 50 member countries and over one million individual members worldwide. Founded in 1946, it offers a global platform to members to become world champions in their own field among competitors from the five continents.

Wax in the City expands with new Dublin studio

Wax in the City has opened a new studio in Stillorgan, Co Dublin, opposite the shopping centre in the former Joseph Kramer hair salon. This is Wax in the City’s third Dublin studio – the other two are located in the city centre on South William St and Liffer St Upper. The new Stillorgan studio has six individual waxing stations, and provides the brand’s complete menu of waxing services for her, him and teens, and threading for the face.

According to Wax in the City, it is the only waxing studio chain in Ireland that offers a total no appointment walk-in service with an online check-in app. Clients can use the app to check waiting times in the studio, and reserve a slot while en route to avoid delays. All of the therapists are trained in-house in Berlin, and use a wax formula that is 100% vegan, and developed without animal testing. Wax in the City also has its own range of body care products, including ingrown hair serum and gel, after-wax balm, and aloe vera spray.

Wax in the City is part of a Germanbased international network of studios, which is owned and operated in Ireland by Marjorie Cusack. She opened the fi rst Wax in the City studio in Ireland on South William St in 2012. Plans are in place to open another branch on Dublin’s northside in the near future.

Spa Life Ireland holds inaugural online conference

The fourth annual Spa Life Ireland conference took place on 29 September, with this year’s event moving online due to the Covid-19 restrictions. The conference was originally due to take place over two days in May at the Galgorm Spa & Golf Resort near Belfast. However, the ongoing pandemic uncertainty led organisers to invest in a digital platform and move the event online. Using Remo, which is a live, virtual event and networking space, the conference featured real-time, face-to-face engagement, with live Q&A sessions and in-app p chat.

With the theme of ‘Raising the bar in wellness’, author and HR leader Debra Corey began the day with a talk on ‘Revolutionising employee engagement’. This was followed by an interview with Galgorm Spa & Golf Resort’s managing director Colin Johnston, and head of spa operations Tara Moore. Johnston spoke about how surviving a previous recession has helped the business meet the more recent challenges of Covid-19. The next six months are crucial, he said, and he advised a ttendees to continue t o invest in their marketing budgets, and ensure they have the right team, which is their b est asset.

International spa consultant Heidi Grimwood joined the e vent from the Maldives. Speaking on the topic of ‘ Revenue hacks to drive profits’, she highlighted t he importance of managing turnaround or cleaning times in spas, as well as the different ways upselling can be a chieved. Speaking from Austria, spa management expert Judith Ertler focused on ‘Best practice strategies for recruitment success from across Europe’. This was followed by a discussion between award-winning former spa director Helena Grzesk and Jason Adams, managing director of Rockliffe Hall hotel, golf and spa resort in Durham in the UK,on the challenges of running a successful and profitable hotel spa. The pair talked about the issues that can arise between the spa manager and general manager when running a hotel spa.

Justin Caffrey addressed the audience on ‘Leadership 2020 – Eastern wisdom in the realm of better communication, influence and negotiation’. He placed huge emphasis on the value of authenticity, stressing that its power can never be underestimated, particularly within the spa industry. Nutritionist Lorraine Perretta completed the day’s line-up of speakers with her talk on ‘The rise of the skintellectual consumer and its impact on your spa’. She spoke about how supplements can fit into the spa environment, and offer the opportunity for long-term engagement with clients.

The Spa Life conference attracted an international audience from countries such as South Africa, Canada and Cyprus, as well as Ireland and the UK, and delegates were able to network virtually in between sessions over the course of the day.

New lash and brow salon opens in Dublin city centre

A new lash and brow salon in Dublin city centre has been opened by Maura Healy, who says she came up with the idea for her business during lockdown. Located on Wicklow St, Alchemy Lab has a focus on creative and innovative lash and brow treatments, and services include microblading, brow lamination, threading, bespoke tinting and lash extensions.

Healy qualified as a beauty therapist 16 years ago, and went on to train as a make-up artist. She then set up an events-based business called The Pamper Palace, which did hair and make-up for festivals and corporate events. “Then 11 years ago, a friend of mine was setting up one of the first brow bars in Dublin and asked me to join the team,” she explained. “So I jumped on board and my journey in the brow industry began.”

Opening her own brow business came about when Healy had to return earlier than planned from an around-the-world trip this year. “I dreamt up Alchemy Lab during lockdown,” she said. “I'd just got back from my travels. My original plan at the start of the year was to run retreats in Mexico by the end of 2020, but the travel bans sent me back to the drawing board. I returned to my craft and decided to go with an idea of a brow studio, which had been in my mind for years. I'm from a very entrepreneurial family, and I was raised with a strong sense of working hard, and working for yourself. So running my own business is almost second nature to me.”

Healy said her client base is growing, even though the climate is unpredictable postlockdown. “For example, a Monday may be booked out, but a Thursday might have just a few appointments. There's no way to gauge the bookings right now.”

Meanwhile, she has joined forces with the Dress For Success charity, which has two Irish centres in Dublin and Cork, and is part of a larger global charity to empower women. By giving them the skills, development tools and professional attire, the aim is to empower women to gain employment and economic independence. Healy, along with make-up artist Judy Wong, has teamed up with the Dublin arm of the charity, and the pair are helping out on the beauty side.

Petermarkathon 2020 marks a decade of charity fundraising

Petermarkathon 2020 took place from 23– 26 October in Peter Mark salons nationwide. Now in its 10th year, the hairdressing group’s annual charity initiative raised funds this year for Enable Ireland and Autism NI. To date, it has raised over €593,000 for charities across the Republic of Ireland, and £55,000 for charities in Northern Ireland.

According to Peter Mark, Covid-19 has had a huge impact on the children, adults and families who rely on Enable Ireland and Autism NI. To support them, each Peter Mark salon across the country was tasked to come up with its own individual and unique way to raise money, while also adhering to Covid-19 regulations.

Enable Ireland provides health and support services to children and adults with physical, sensory and intellectual disabilities, and their families, in 15 counties across Ireland. Autism NI’s mission is to create a more equal society for those with autism in Northern Ireland.

Habic publishes extensive Irish hair and beauty market report

The Hair and Beauty Industry Confederation (Habic) has published a new report that gives a detailed economic analysis of the market in Ireland. The organisation commissioned economist Jim Power to research and deliver the Economic Value of Hair & Beauty Market in Ireland report, which found that turnover for the hair and beauty sector was estimated at €2.6bn in 2019. It also found that total employment in the hair and beauty sector was equivalent to 2.1% of total employment in the economy at the end of 2019; and its total contribution to GDP was estimated at €2.79bn. The 15-week closure due to the Covid-19 pandemic led to €580m in lost turnover.

‘This report will raise the bar within the industry and at Government level’

Other key findings in the report include that expenditure on hairdressing, hair and beauty services was €1.44bn in 2019; expenditure on hair products, cosmetic and skincare products was €1.2bn; and there are 9,286 hair and beauty salons in Ireland, with 88.9% of their employees female.

According to the report, the hair and beauty industry black market is worth €400m, with a cost to the Exchequer of €55m, and policy support is urgently required to tackle this growing and very damaging sector. The report also called for national apprenticeship supports and the re-introduction of training rates; supports for CPD programmes and a formal education qualification review process; and reform of the commercial rent system, which it said should become a policy priority for the new Government.

“It’s been a very different year for Habic than what we had planned at launch last October 2019,” said Margaret O’Rourke Doherty, CEO, Habic. “An unprecedented and unexpected shockwave engulfed our industry on so many levels, as our colleagues dealt with business, personal, and social concerns and challenges. Habic responded and continues to do so, while all the time remaining focused on the strategic tasks that we set out to accomplish in our Statement of Strategy at launch. Our vision from the get go was and is to be part of a revolution in which the hair and beauty industry is highly supported, included, and truly valued by all stakeholders, as a key industry that makes a significant economic impact to the national GDP and labour force.

“Habic prides itself on taking a factual and well-researched approach, and it is with great pride that we release this landmark and ground-breaking report, which is Ireland’s first and only comprehensive economic report of its kind. This report will raise the bar within the industry and at Government level.”

The report was sponsored by Professional Beauty, Wella Professionals, L'Oréal Professional Products, CIDESCO, Phorest, iTEC and VTCT.

Danielle Kennedy officially elected as IHF president

The Irish Hairdressers Federation (IHF) held its annual general meeting on 14 September, when the role of president was officially voted on and accepted by outgoing vice-president Danielle Kennedy. Lisa Eccles is now the IHF's new vice-president. Kennedy is MD of The Collective by Lloyds, which has salons in Waterford and Wexford. She takes over from David Campbell, director of House of Colour in Dublin. In his address, Campbell called Kennedy “a powerhouse, a hard-working entrepreneur, and a kind, caring, smart individual, with the ability to appreciate and understand other points of view”.

‘As an industry we face many challenges in the coming years, but she has already proved what an asset she is in her role as vice-president’

The IHF said that Kennedy is committed to continuing the work of the IHF, in order to raise the profile of hairdressing in Ireland . “As an industry we face many challenges in the coming years, but she has already proved what an asset she is in her role as vice-president. The executive committee would like congratulate and wish her continued success.”

“I'd like to say a huge thank you to our former president David Campbell for his constant guidance, mentoring and friendship over the last three years, and, in particular, the last few months,” said Kennedy. “Although there is a tough and bumpy road ahead for our industry, I'm so lucky to be able to face those challenges with our new vice-president Lisa Eccles.”

Originally formed as a voluntary group in 1974, the IHF is a representative organisation for the hairdressing profession in Ireland. The services it provides to its members include representation, advice, networking and support, training and education, and discount schemes.