Swimming Pool and Spa Retailers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 10,000 swimming pool and spa retailers in the US sell above ground pools, hot tubs, and related equipment, supplies, and merchandise. Other merchandise categories include backyard and patio furniture, grills, and saunas. Firms may also offer pool and hot tub maintenance, repair, construction, or renovation services.
Seasonal Demand
Demand for pool and spa supplies is highly seasonal and dependent on climate and weather conditions in a particular geographical area.
Energy Efficiency
Interest in cost savings and energy conservation has encouraged pool owners to investigate more efficient equipment.
Industry size & Structure
The average swimming pool and spa retailer employs 32 workers and generates about $500,000 in annual revenue.
- The swimming pool and spa retail industry generates approximately $5 billion in annual revenue. An estimated 4,500 retailers sell spas, according to PK Data. The swimming pool equipment and supply retail industry consists of an estimated 5,500 stores, although the degree of overlap between swimming pool and spa retailing is unknown.
- The industry is highly fragmented and dominated by independent operators and franchisees that operate within a limited geographical market.
- The pool and spa industry's installation base in the US consists of 5.5 million residential pools and 3.3 million above-the-ground pools, according to the Pool and Hot Tub Alliance. There are 7.3 million hot tubs, according to a study by Pool and Spa Marketing.
- About 60% of consumer spending in the pool industry is for maintenance and minor repair of existing swimming pools. The average in-ground pool owner spends $900 annually on chemicals, equipment, parts, and accessories needed for pool maintenance. The average revenue per transaction for pool supplies retailers is $171, per the Pool & Hot Tub Alliance.
- The top product categories by sales for pool supplies retailers include chemicals/salt/filter media (47.8%), equipment (21.2%), and parts and maintenance equipment (18%), according to the Pool & Hot Tub Alliance.
- Leslie's Poolmart is the largest retailer of pool supplies and has over 1,000 stores in the US. Pinch a Penny is the largest franchised pool and spa care company over 280 stores located primarily in the Southeast.
Industry Forecast
Swimming Pool and Spa Retailers Industry Growth
Recent Developments
Nov 22, 2024 - Employment, Labor Costs Up
- According to the US Bureau of Labor Statistics (BLS), employment and labor costs by other miscellaneous retailers, including swimming pool and spa retailers, rose in September 2024 year over year. Employment rose 2.9% in September 2024 compared to a year ago. Average wages for nonsupervisory employees at other miscellaneous retailers increased 4% in September 2024 year over year, reaching $22.33 per hour. Consumer spending, a key driver for the industry, has improved modestly, rising 2.9% in August 2024 compared to a year ago and up 0.1% from the previous month, according to the Bureau of Economic Analysis. Sales at miscellaneous store retailers, including swimming pool and spa retailers, increased 6.7% in July 2024 compared to a year ago and were down 1.7% from the previous month, according to the Census Bureau.
- Many US homeowners are investing in home renovations amid ongoing economic uncertainty, according to data from Nationwide reported in HBS Dealer. Nationwide’s recent Homeowner Survey found 51% of homeowners completed a “major home renovation project” in the past two years. Empty-nesters spent the most on home renovations at $8,670, compared to $5,128 for the typical home owner. Empty nesters are investing more in large-scale projects compared to the average homeowner. According to Nationwide’s Casey Kempton, “A complex housing market has many homeowners reconsidering plans to sell. For empty nesters, that means upgrading their current homes to meet their needs in the next life stage, rather than relocating.” New pool and hot tub installations, which often take place during a home renovation, are a demand driver for pool maintenance supplies.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- Leslie’s Pool Supply announced plans to add 15 new stores to its footprint in 2024, according to Chain Store Age. The largest pool and spa supplies retailer in the US currently operates over 1,000 stores in the US. Seven of the new stores will be located in Texas with the other stores to be located in Arizona, California, Florida, Nevada, and Washington. According to David Caspers, Leslie’s chief stores officer, "We are thrilled to announce these 15 new stores, which are strategically located in areas where there are strong pool and spa care needs. Texas is a top market for Leslie's, and we are pleased to expand into more communities across the state this year.”
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