Swimming Pool and Spa Retailers NAICS 459999

Jan 28, 2026 - Pool Construction Hits Post-Pandemic Low: NAHB

• US swimming pool and spa retailers face a softer demand backdrop as new pool construction activity continues to decline, according to the NAHB Pool Construction Permit Index. December 2025 permits fell to their lowest level since 2020, with the index down 34.3% versus January 2020, 25.5% month over month, and 34.7% year over year. Seasonally adjusted data show an even clearer downturn, with permits 23.4% below the 2020 baseline, 26.8% lower than the prior month, and 37.3% below last year, marking the weakest reading in the series. While reduced construction may pressure demand for new installations, retailers may see relatively stronger activity in replacement, maintenance, and accessory sales. Geographic concentration remains notable, with Florida accounting for nearly one-third of permits in 2025, followed by California at 14%, shaping regional sales opportunities.
• Large pool supply retailer Leslie’s plans to close 80 to 90 underperforming retail stores and one distribution center as part of a broader restructuring effort aimed at improving operations and restoring profitability. The closures, announced in the company’s fourth-quarter and fiscal 2025 results, will occur in January and affect locations nationwide, while the Illinois distribution center primarily supporting e-commerce will also be shuttered. Leslie’s operates more than 1,000 stores and is also reducing inventory by 10% year over year and eliminating more than 2,000 slow-moving SKUs. The actions follow a difficult year marked by an 8.6% decline in store traffic, the loss of over 160,000 residential customers, and a 6.6% drop in annual sales to $1.24 billion. While fourth-quarter results showed some stabilization, the company expects fiscal 2026 sales between $1.1 billion and $1.25 billion.

• According to a report in AQUA Magazine, swimming and spa retailers reported steady revenue in Q3 2025 despite margin pressures, according to the Pool & Hot Tub Alliance’s Quarterly Pulse Survey. Overall industry revenue rose modestly (+1% to +5%) year-over-year, with service and remodel segments driving growth. Service calls increased for 55% of businesses, and remodel jobs rose for 42%, reflecting consumer preference for upgrading existing pools and spas. New construction softened, with 37% of companies reporting declines, highlighting sensitivity to higher interest rates and inflation. Retailers’ bottom-line profits remained largely unchanged (+1% to -1%) as material costs absorbed gains. Key challenges include economic factors (70%), profitability (62%), and labor shortages (47%). Despite these headwinds, 69% of companies expect revenue growth over the next 12 months, and 77% feel well positioned to adapt. The survey underscores cautious confidence as retailers balance resilient demand with persistent cost pressures.
• For US swimming pool, spa, and swimming pool supplies retailers, January 2026 consumer sentiment data from the University of Michigan Surveys of Consumers point to cautious demand conditions despite a modest monthly improvement in confidence. The Index of Consumer Sentiment rose 6.6% month over month to 56.4, but remained 21.3% below year-ago levels, signaling ongoing restraint on discretionary spending. Current Economic Conditions increased 9.9% to 55.4, yet were still 26.2% lower year over year, reflecting continued pressure on household budgets. Consumer Expectations climbed 4.4% to 57.0, but stayed 18.0% below January 2025, suggesting limited appetite for big-ticket pool and spa investments. While year-ahead inflation expectations eased to 4.0%, elevated price concerns are likely to favor maintenance, repair, and essential pool supply purchases over new installations or premium upgrades in early 2026.