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Sunday 17.12.2017 | Name days: Teiksma, Hilda

Solarium business down by 30%

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One third or 30-37% of solarium business market players have left the industry, while others have experienced 70% turnover drop, informs Latvian Tanning and Solarium Association (LTSA) Board member Girts Gederts (Ģirts Ģederts).

Solarium salons that managed to implement different optimization measures witness a comparatively small turnover drop of about 30%, yet there are also salons suffering 70% and more turnover fall. Some market players, about 30-37%, have quit operating at all,” told Gederts in an interview to Nozare.lv

He evaluates the price drop of solarium services as ungrounded due to the fact that along with the implementation of the European Union regulations, solarium operating costs have also increased. «It is not only electricity, but also access limitations and earning back money paid for solarium lamps,» indicates Gederts.

He also points out that there is considerable decrease in the number of clients. Solarium salons were carrying out different optimization measures. «We tried to get cheaper room rents, staff wages were reduced, the number of employees engaged in cleaning was cut as well, the staff began to carry out daily cleaning in smaller salons. Working hours were shortened, and some salons chose not to work on Saturdays and Sundays, especially during the summer,» explained LTSA Board member.

Gederts notes the high proportion of new tanning equipment as one of the aspect of solarium business, which made it difficult to operate during the crisis, . «Latvian market is very new and progressive, when compared with the rest of the world, and it has huge proportion of new equipment; even developed European countries cannot afford to work like that. Much of this is financed from leasing, and leasing terms have been calculated on «the good years» cash flows. When crisis stroke, many salons could not afford to continue operating, because leasing contract terms were not prolonged and it was not possible to reduce monthly payments of leasing; therefore they were forced to return the equipment back,» said Gederts.


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