Sam Leyvas with Stacey Soble As the associate executive director of the Professional Beauty Association, Sam Leyvas provides an optimistic update from the Salon/Spa Performance Index, the quarterly composite index that tracks the health of the U.S. salon/spa industry.
Fueled by continued improvements in service and retail sales along with higher customer traffic levels, the Professional Beauty Association's (PBA) Salon/Spa Performance Index (SSPI) hit a record high in the first quarter of 2010. The SSPIâa quarterly composite index that tracks the health of, and outlook for, the U.S. salon/spa industryâstood at 10e.1 in the first quarter, up 0.5 percent from its fourth quarter level.
"Across the board, improvements were reported in the first quarter, including an increase in service and retail sales, key barometers for the industry," says Steve Sleeper, PBA's executive director. "The salon/spa industry continues to remain resilient and members and non-members alike remain highly optimistic for future growth."
The SSPI is based on the responses to PBA's Salon/Spa Industry Tracking Survey which is fielded quarterly among 800 salon/spa owners nationwide on a variety of indicators. It is constructed so that the health of the salon/spa industry is measured 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 componentsâthe Current Situation Index and the Expectations Index.
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 100.5 in the first quarterâup 0.6 percent from its fourth quarter level. In addition, the Current Situation Index rose above 100 for the first time in the five-quarter history of the Salon/Spa Performance Index, which represents expansion in the current situation indicators.
The Expectations Index, which measures salon/spa owners' six-month outlook, considers the following five industry indicators: service sales, retail sales, employees and hours, capital expenditures, and business conditions. Results of this Index are encouraging and point toward broad based industry growth. Four out of five salon/spa owners expect to have higher service sales and retail sales in the months ahead. Optimism in the direction of the overall economy has prompted owners' plans to raise their number of staff and increase capital expenditures invested in either expansion or remodeling in the next six months.
In addition, the long-term outlook for job prospects in the salon and spa industry is very positive, according to newly released projections (december 2001) by the U.S. Bureau of Labor Statistics (BLS). According to BLS projections, "the number of personal appearance jobs at employment-based establishments will jump 31 percent between 2008 and 2018." Among personal appearance occupations, BLS expects the number of skin care specialists to grow by more than 50 percent between 2008 and 2018, while the number of hairdresser, hairstylist, and cosmetologist positions at employment-based establishments is expected to grow by 31 percent.
It seems many salon and spa owners were more than ready to kick 2017 to the curb. Some of our Salon Today 200 honorees talk about why 2017 was such a tough year, and how that makes capturing an honor in 2018 so very sweet.
On the 12th Day of the 12 Days of the Salon Today 200, we wrap it all up with the second half of the 2018 honorees in Growth. These salons and spas worked hard to realize gross sales growth of 10.41% and above between 2015 and 2016. Meet these great salons!
On the 11th Day of the Salon Today 200, we celebrate the first half of the 2018 honorees in Growth. These salons and spas have learned to master a number of best business practices to continually grow their service and retail dollars.
On the 10th day of the 12 Days of the Salon Today 200, we celebrate the salons and spas that know a new client is silver, while a retained one is gold. These salons diligently developed programs to drive prebooking rates, referrals and retention.
On the 8th day of the 12 Days of the Salon Today 200, we celebrate the salons and spas who rally around retail, creating beautiful displays and enticing promotions, as well as answering clients' needs with education and recommendations.
On the 7th day of the 12 Days of the Salon Today 200, we celebrate the salons and spas who know inventory management is the supreme balancing act. Keep too much stock and their cash is tied up in the stockroom, keep too little and they miss valuable sales. Meet the 2018 honorees in Inventory Management.
On the 6th day of the Salon Today 200, we celebrate the salons and spas who lead with the heart, searching their communities for causes where their talent, time and money make the most positive change. Meet the ST200 honorees in the category of Philanthropy.
Meet the 2018 Salon Today 200 honorees in Employee Education. These salons constantly develop systems to strengthen the skills and confidence of their new team members, while encouraging and supporting their seasoned staff to continually stretch creatively.
On Day 4 of the 12 Days of the Salon Today 200, we introduce you to the savvy honorees in the Technology category. They've learned to leverage a variety of evolving technologies to reach their full potential and keep all salon systems running strong.
It's day 3 of the 12 Days of the Salon Today 200 and time to meet the superstars in customer service. These salons have mastered the art of elevating the salon and spa experience, which solidifies client loyalty and propels growth.