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.
- About 8% of US households have a backyard swimming pool (in or above ground), according to PK Data.
- The pool and spa industry's installation base in the US consists of 10.4 million residential pools, 7.3 million hot tubs, and about 309,000 public pools, according to the Pool and Hot Tub Alliance.
- 36% of above ground pool owners are college graduates, while 46-49% of inground pool and hot tub owners are college graduates.
- Mean buyer is age 45 to 55. Mean income of $79,000 for above ground pool owners. Mean income $134,000 for inground pool and $75,000 for hot tub owners.
- About 60% of consumer spending in the pool industry is for maintenance and minor repair of existing swimming pools.
- 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
May 24, 2024 - Sales Up in March
- Sales of miscellaneous store retailers, which include swimming pool and spa retailers, were up 7.1% in March 2024 compared to the previous year, according to the latest data from the Census Bureau. Employment in the industry was up 2.4% in March 2024 compared to the previous year, while wages were 2.3% higher than a year ago reaching $22.02 per hour. Consumer spending levels were up for the second consecutive month, up 3.1% in March 2024 year over year and up 0.5% from the previous month.
- Omnichannel options remain popular with retailers, with high adoption rates of buy online, pick up in store (BOPIS) (78.3%) and in-store stock statuses (65.4%) by retail chains in the Top 1000, according to the 2024 Omnichannel Report from Digital Commerce 360. One option losing some overall traction is curbside pickup, which has fallen to 25.3% usage by the Top 1000 merchants compared to a high of 55.1% in 2021 during the pandemic. Curbside pickup remains a priority for grocery stores and office supplies merchants. Customers are adjusting their shopping habits to the new tools available. Registering as the most popular omnichannel activity, about 62% of consumers said they checked product availability at a nearby store online before making a purchase. Shoppable video on social media and streaming platforms was noted in the report as an increasingly common shopping option with implications for the largest online retailers and their retail media networks.
- Consumer confidence levels fell in April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
- According to a recent ConsumerWise report from McKinsey, consumers continue to “trade down,” changing the type or quantity of purchases for better pricing and value, in Q1 2024. About 76% of respondents reported engaging in trade-down actions in Q1 2024, compared to 77% in Q4 2023. Younger consumers tended to trade down more often than older consumers, while low and middle-income consumers traded down more frequently than high-income consumers, per the report. The report also shows that the percentage of consumers using the “buy now, pay later” option has remained mostly the same in Q1 compared to the previous quarter. Additionally, fewer consumers are delaying their purchases, with only 30% doing so in Q1 compared to 35% in Q4.
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