Phoenix, AZ (June 4, 2014) – After increasing in the fourth
quarter of 2013, the Professional Beauty Association’s (PBA)
Salon/Spa Performance Index (SSPI) declined slightly 0.8 percent in
the first quarter of 2014, declining to its lowest level in a year.
Softer sales and customer traffic contributed to the decrease.
Furthermore, the Current Situation Index fell by 1.4 percent to
100.3, while the Expectations Index decreased by 0.3 percent to
104.6.
The SSPI is a quarterly composite index that tracks the
health and outlook of the U.S. salon/spa industry. The SSPI is based
on responses to PBA’s “Salon/Spa Industry Tracking Survey,” which is
fielded quarterly among salon/spa owners nationwide on a variety of
indicators. It is constructed to measure the health of the salon/spa
industry in relation to a steady-state level of 100. Index values
above 100 indicate that key industry indicators are in a period of
expansion, while index values below 100 represent a period of
contraction. The Index consists of two components: the Current
Situation Index and the Expectations Index.
“The
professional salon/spa industry remains resilient despite this first
quarter decline. Overall indicators and feedback from beauty
professionals across the country continue to be positive, and we
hope to see additional growth in the near future,” said Executive
Director of PBA, Steve Sleeper.
The Current Situation Index,
which measures current trends in five industry indicators (service
sales, retail sales, customer traffic, employees/hours and capital
expenditures), stood at 100.3 percent, down 1.4 percent from the
fourth quarter. Despite the decline, the Current Situation Index has
remained above 100 for the sixth consecutive quarter, which marks
expansion in the industry indicators.
Service sales,
customer traffic levels, and capital spending in the first quarter
of 2014 were slightly weaker than last quarter. Only 50 percent of
salon/spa owners reported an increase in same-store service sales
between the first quarters of 2013 and 2014. Similarly, only 31
percent of spa and salon owners reported an increase in retail
sales, below the 52 percent reported in the fourth quarter of 2013.
In contrast, spa and salon owners reported a slight increase in
staffing levels in the first quarter. While this area did not post
concerning results, it countered the decreased indicators.
The Expectations Index, which measures salon/spa owners’
six-month outlook on five industry indicators (service sales, retail
sales, employees and hours, capital expenditures and business
conditions) slightly decreased as well in the first quarter of 2014
to 104.6, down 0.3 percent. However, like the Current Situation
Index, the Expectations Index continues to remain above 100, which
indicates that salon/spa owners are optimistic about growth in the
coming months.
Salon/spa owners were most positive on
growth relating to service sales, retail sales and the general
direction of the economy. Sixty-seven percent of spa and salon
owners expect to have higher service sales within the next six
months. Similarly, 56 percent of spa and salon owners plan to make a
capital expenditure for equipment, expansion or remodeling in the
next six months, up from 54 percent last quarter and the highest
level in 13 quarters.
The full SSPI report and the “Salon &
Spa Tracking Survey,” along with other helpful research on the
professional beauty industry, can be found at
probeauty.org/research.
