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

                              Jun 23, 2022 - Chorine Shortage Persists
                              • Chlorine shortages and higher prices that emerged when Hurricane Laura destroyed a Louisiana chlorine plant in 2020 have persisted into 2022. Chlorine supplies have also been hit by the supply chain disruptions and labor shortages that have affected most other industries. A fire in January 2022 at a chorine plant in New Jersey further reduced supplies. US producer prices for chlorine, sodium hydroxide, and other alkali chemicals were up 56% in May 2022 compared to a year earlier, according to the US Bureau of Labor Statistics. Supplies are expected to normalize 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.
                              • 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.
                              • This summer, swimming pool and spa retailers may benefit as homeowners continue to make investments in home improvements. Home remodeling spending is expected to remain strong for most of 2022 before tapering off in the fourth quarter, according to the Leading Indicator of Remodeling Activity (LIRA) report released in April by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 11.5% to $391 billion in the first quarter of 2022 compared to Q1 2021. On a year-over-year basis, quarterly remodeling spending levels are forecast to rise 15.8% in Q2, 19.7% in Q3, then moderate slightly to 17% in Q4 when spending will reach $431 billion.
                              • Buyers of new homes spend more on home improvements in the first year after closing than buyers of existing homes, according to the National Association of Home Builders Consumer Expenditure Survey released in June. New home buyers spend more than $4,000 on building pools, patios, walks, fences, and driveways compared to about $500 spent on outdoor upgrades by buyers of existing homes. Non-moving homeowners spend about $250 per year on outdoor improvements.
                              Get A Demo

                              Vertical IQ’s Industry Intelligence Platform

                              See for yourself why nearly 40,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                              Build valuable, lasting relationships by having smarter conversations -
                              check out Vertical IQ today.

                              Request A Demo