Despite Second Consecutive Decrease, Salon and Spa Owners Optimistic for
Coming Months
Phoenix, AZ (September 10, 2014) –
After seeing a decrease in the first quarter of 2014, the Professional Beauty
Association’s (PBA) Salon/Spa Performance Index (SSPI) continued to decline
slightly by 0.2 percent in the second quarter 2014; its lowest level since 2012.
This decrease is due in large part to a dip in expectations indicators including
a less positive outlook on the overall economy and less capital spending.
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 the decline it’s
experienced this year. Overall indicators and feedback from beauty professionals
across the country continue to be positive and we hope to bounce back from this
decline for the latter half of 2014,” said Executive Director of PBA, Steve
Sleeper.
Despite the overall decline, the Current Situation Index, which
measures current trends in five industry indicators (service sales, retail
sales, customer traffic, employees/hours and capital expenditures), increased to
100.7 percent; up 0.3 percent from the first quarter. The Current Situation
Index has remained above 100 for the seventh consecutive quarter, which marks
expansion in the industry indicators.
Stronger retail sales and customer
traffic levels significantly contributed to this increase. Forty-one percent of
salon/spa owners reported an increase in retail sales, which is up 10 percent
from the first quarter in 2014. Similarly, 33 percent of salon/spa owners
reported an increase in customer traffic. Staffing levels also registered a net
increase for the fifth consecutive quarter, while salon/spa owners also reported
a net increase in employee hours.
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 to 103.8, down 0.7 percent. However, like the Current
Situation Index, the Expectations Index continues to remain above 100 as well,
which indicates that salon/spa owners are optimistic about growth in the coming
months.
Breaking down some of the results, Salon/spa owners were most
positive on growth relating to service sales, retail sales and staffing levels;
sixty-three percent of which are expecting to see higher service sales within
the next six months. Similarly, 56 percent of spa and salon owners expect to
have higher retail sales in the next six months, while 48 percent are planning
to increase staffing levels. Regarding the overall economy however, only 50
percent of salon/spa owners expect to see improvement; declining 8 percent from
last quarter. Similarly the proportion of salon/spa owners who are planning for
capital spending fell to 39 percent; down 17 percent from last quarter.
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.
