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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Mar 25, 2024 - Employment, Wages Up
                              • Employment by other miscellaneous retailers, including swimming pool and spa retailers, increased slightly in December 2023 compared to December 2022, according to the Bureau of Labor Statistics (BLS). Compared to the pre-pandemic period, employment levels were down 2.2% in December 2023. Wages at other miscellaneous retailers were up 2.3% in December 2023 from 2022 and 25.6% from 2019, as companies compete for workers in a tight labor market. Additionally, consumer spending levels grew in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter, according to Reuters.
                              • According to a new 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.
                              • Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
                              • Swimming pool and spa retailers will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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