Beauty Industry Outlook Remains Positive Q3; Salon/Spa Owners Report Net Increase in Service Sales
The outlook for the salon/spa industry remained positive in the third quarter, as the Professional Beauty Association’s (PBA) Salon/Spa Performance Index (SSPI) rose for the second consecutive quarter.
The SSPI – a quarterly composite index that tracks the health of and outlook for the U.S. salon/spa industry – stood at 101.9 in the third quarter, up 0.1 percent from its second quarter level. The SSPI is constructed so that the health of the salon/spa industry is measured in relation to a steady state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction for key industry indicators.
Salon/Spa Performance Index
- The beauty industry outlook remains positive in the 3rd quarter as the Salon/Spa Performance Index shows modest gain.
- For the first time in 2009, salon/spa owners report net increase in service sales.
Retail sales remain soft. - Fully seven out of 10 salon/spa owners said they expect to have higher service sales in six months.
- 61 percent are also much more optimistic about stronger retail sales in the months ahead.
Salon/Spa Tracking Survey
- Sales performances differed across sales categories in Q3.
- 57 percent of salon/spa owners in the $500,000-$999,999 sales category reported higher service sales in Q3.
- In contrast, just 30 percent of owners with sales of $2 million or more reported higher service sales in Q3.
- 42 percent of owners with annual sales of less than $250,000 reported lower sales in Q3.
- Salon/spa owners continued to report lower retail sales volume in Q3 with 47 percent reporting lower retail sales.
- Owners in the highest sales volume category reported the softest retail sales in Q3.
- 47 percent of owners in the $1 million - $1.9 million sales category reported higher retail sales in Q3, while 40 percent reported lower sales.
- Salon/spa owners reported a reduction in customer traffic levels in Q3.
- Owners reported slightly higher staffing levels for the second consecutive quarter.
- The also reported a decline in the average workweek of their employees.
- Top challenge for salon/spa owners: “building and maintaining sales volume”.
The full SSPI and second quarter Salon/Spa Tracking Survey Report can be found at probeauty.org/businesstools/research
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