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 Association of Pool and Spa Professionals (APSP).
    • 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 930 stores in 37 states. Pinch a Penny is the largest franchised pool and spa care company nearly 260 stores located primarily in the Southeast.
                              Industry Forecast
                              Swimming Pool and Spa Retailers Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Nov 30, 2022 - New Homes Sales Rise
                              • New single-family home sales increased 7.5% month over month but declined 5.8% year over year in October 2022, according to the US Department of Commerce. On a year-to-date basis, new home sales were down 14.2% in the first 10 months of 2022 compared to the same period in 2021. The month-over-month rise in October new home sales was primarily driven by sales of higher-priced homes, according to The Wall Street Journal. However, October marked the eighth straight month of year-over-year sales declines as high interest rates reduce affordability and weaken demand for new homes. A weakening housing market could reduce demand for pools and spas.
                              • With many economists concerned about the possibility of a recession over the next 12 months, pool and spa retailers may be in for some rough weather. Market research firm Pkdata, whose Waveline newsletter focuses on the pool and spa industry, warned in August of “hardships on the horizon” for the sector, citing the devastating effect the Great Recession of 2008-2009 had on inground residential pool construction. While the pandemic gave the industry a boost, construction of new inground pools has yet to return to pre-Great Recessions levels. While the US economy grew slowly in the third quarter, consumers and businesses cut back on spending, adding to fears of a looming recession.
                              • Swimming pools made from recycled shipping containers are gaining in popularity among eco- and budget-conscious homeowners in Texas and elsewhere, Greenmatters reported in September 2022. Texas-based Modpools is on its way to selling 2,000 shipping container pools, as they've become increasingly popular. Shipping containers can be transformed into in- or above-ground pools, are quicker to install than traditional pools and can be customized. A shipping container pool usually costs Texans between $15,000 and $30,000. By comparison, the average cost of a traditional newly-constructed backyard pool in Texas is around $60,000, according to Container Hub Home.
                              • The global market for household robots is expected to experience average annual growth of 16% and rise from $9.2 billion in 2022 to $19.3 billion by 2027, according to a September 2022 report by MarketandMarkets. Pool cleaning robots are forecast to hold the second-largest share of the overall household robot market. Robotic pool cleaners are growing in popularity due to their efficiency and ease of use. North America is forecast to be the second-largest global market for household robots through the forecast period.
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