SIC 7231 Beauty Shops

SIC 7231

This category encompasses establishments primarily engaged in offering beauty or hairdressing services. It includes unisex salons as well as combination beauty and barber shops. Beauty and cosmetology schools are also covered in this category. Information concerning only barber shops can be found under SIC 7241: Barber Shops.

NAICS CODE(S)

812112

Beauty Salons

812113

Nail Salons

611511

Cosmetology and Barber Schools

INDUSTRY SNAPSHOT

The service industry that has developed around hair care has long been dominated by small, single-owner neighborhood establishments. Only in more recent decades has this industry seen the growth of chain salons, which are usually part of larger, diversified parent corporations. Such corporate entities often operate outlets on a franchise basis. These chain and franchise-based hairdressing establishments are most often located in shopping malls.

There were 82,414 establishments in this industry, generating $16.7 billion in revenues, according to 2002 U.S. Census Bureau statistics. These beauty shops employed 436,133 cosmetologists and other workers. In 2002, there were 1,554 cosmetology and beauty schools employing a total workforce of 11,088 and generating revenues of more than $747 million.

For several years, Glemby International and Essanelle dominated the national chain-operated salon industry. Such outlets were commonly found in major American department stores under a variety of other names. In the late 1980s, however, such companies as Supercuts gained a significant foothold in this industry segment by offering discounted, no-frills services. The industry as a whole saw growth rates ranging between 15 and 20 percent during the late 1980s, as smaller salons targeted working women and larger companies opened numerous outlets that provided fast and low-budget hairstyling services.

Since the 1980s, the industry has diversified to target specific consumer trends, and companies filling these niche markets have grown considerably. A prime example is the Hair Club for Men, which offers non-surgical hair replacement.

ORGANIZATION AND STRUCTURE

In a beauty salon run as a sole proprietorship, the principal is most likely female and is often an active hairdresser in the establishment. Such salons are typically geared exclusively toward women and offer a range of additional services, including...