Economic pressures force Baghdad salons into shared spaces

Shafaq News- Baghdad

Beauty salons across Baghdad are facing a sharp slowdown as rising import costs, higher rents, and weakening consumer spending push many operators to shut independent businesses or shift into shared workspaces inside larger centers.

“What I had was no longer covering even basic costs,” 25-year-old Mara Khaled told Shafaq News after closing her salon under pressure from rent, utilities, and soaring prices of imported beauty products. She now works inside a larger center, renting a chair and taking a share of monthly earnings.

For Khaled, the numbers no longer worked. Daily wages for staff can reach around 25,000 Iraqi dinars ($19), while customer traffic has dropped to unpredictable levels. On some days, she receives only one or two clients, mostly for basic services like blow-drying or skincare.

Raising prices, she warned, only risks pushing customers away, while cheaper products would quickly damage quality and reputation.

Shifting into a shared model has eased overhead pressure, as rent, electricity, licensing, and safety requirements now fall on the center owner. Even so, she still described activity as weak, with demand concentrated almost entirely around weddings and special occasions.

“In some neighborhoods, a simple hairstyle can cost 10,000 dinars (about $8), while in upscale areas it may reach 70,000 dinars (about $54), depending on hair length,” she explained, pointing to widening price gaps that are limiting demand further.

“Imported products keep getting more expensive,” salon owner Duraid Said remarked, citing cosmetics, protein treatments, and equipment as key pressure points in the market. Rising costs, he added, have forced price adjustments, but those increases have also contributed to fewer customers.

Expanding competition has added another layer of pressure. New salons continue opening across Baghdad, especially in upscale districts such as al-Mansour, where promotional offers are increasingly common.

Operating his center mainly during weddings and seasonal events, Said observed that activity remains minimal for the rest of the year, as products used in salons are imported and tied to exchange rate fluctuations, making pricing unstable and planning difficult.

Households, he stressed, are now prioritizing essential goods over non-essential services like beauty treatments.

A Shafaq News survey across several salons showed that about 70% of clients limit spending to basic services costing up to 25,000 dinars ($19), reflecting tighter budgets and reduced liquidity.

For many customers, even routine treatments have become occasional luxuries. “Hair dye now costs at least 200,000 dinars ($154), which is more than I can justify spending regularly,” customer Kawsar Saleh explained. Many women, she added, now buy products from local markets and apply them at home instead of visiting salons regularly.

Salon visits, once routine for many families, have largely shifted to weddings and major events. In previous years, bridal preparations often included extended groups of relatives and friends; now, it is mostly limited to the bride herself.

Tracking the sector’s downturn, the Baghdad Barbers and Stylists Union attributes the slowdown to rising costs and expanding competition. According to financial official Ikhlas Fadel, the Union does not collect fees from owners or workers but continues to monitor closures and market pressure.

Fadel also noted that as costs continue to climb and customers tighten spending, some owners have reduced working days, including weekly closures, to cut expenses.

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