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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                              Coronavirus Update

                              Apr 19, 2022 - Some Supply Problems Ease
                              • Chlorine shortages and higher prices that emerged when Hurricane Laura destroyed a Louisiana chlorine plant in 2020 have eased somewhat by early 2022. Chlorine supplies have also been hit by the supply chain disruptions and labor shortages that have affected most other industries. Supplies are expected to normalize further once the damaged plant in Louisiana comes back online in late 2022 or early 2023. However, the project could take longer to complete amid ongoing shortages of construction materials.
                              • The Biden administration announced a plan to recruit and train a new generation of truck drivers. The Truck Action Plan was developed by the administration's Supply Chain Disruptions Task Force, which was created to address near-term supply chain bottlenecks that were caused or made worse by the coronavirus pandemic. Swimming pool and spa retailers have had difficulty getting pool maintenance supplies due in part to trucking-related supply chain issues. The plan includes providing resources and funding to help states expedite the commercial driver's licensing process, a 90-day challenge to expand a registered apprenticeship program, and outreach to veterans as recruitment for new drivers. Senior administration officials stressed that though some of the steps are focused on longer-term changes, their proposal includes actions that would support short-term economic recovery and help alleviate supply chain snarls.
                              • One in 10 people surveyed by insurer Aviva has expressed regret about buying items ranging from hot tubs to DIY tools during the pandemic. COVID-19 lockdowns led to a surge in sales of some items that people could enjoy at home or in the garden or to keep up their fitness. Gaming equipment, DIY tools, home gyms, bikes, clothing, jewelry, musical instruments, kitchen appliances, garden furniture, pizza ovens, and hot tubs all appeared on the regret list, the insurer said. Some had sold or given away the items they regretted buying.
                              • Supply chain experts say that it will take at least until mid-2022 to alleviate intermodal congestion that stretches from Asian ports, across the Pacific to US ports, and on to railroads and their inland terminals. Railroads have experienced congestion at inland intermodal terminals for months, particularly in the Chicago area. Shippers have been slow to pick up their containers and are keeping them longer for unloading at warehouses and distribution centers, which has created a shortage of chassis. Railroads say their intermodal networks can handle current volumes, but only if all links in the supply chain are working relatively smoothly.
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