The pool and spa retail sector has seen a lot of growth in recent years, as homeowners have invested in their backyard spaces more than ever before. Dealers have been resilient, adjusting to changing market conditions and predicting inventory with great accuracy.
After reporting a huge increase in sales, however, it now appears the surge has officially crested and demand has leveled off. In fact, in 2020, at the height of the pandemic period, 82% of survey respondents reported an increase in sales. Now, only 35% of dealers reported an increase in their 2023 revenues. In 2020, 1% of retailers reported a decrease in sales, while this year, that number rose to 47%, up 22% from last year alone.
Of course, a decrease in demand means a greater chance for prompt product delivery and shorter wait times. Sixty-four percent of pool and spa retailers report it's not a problem to get inventory, and the majority of wait times for hot tubs, specifically, are no more than one month (read the hot tub section below).
Despite existing challenges like labor, government restrictions, and sourcing new customers, it appears dealers are confident heading into the 2024 busy season, as the majority of survey respondents (47%) reported they feel optimistic about the year ahead. That's the thing about pool and spa retailers, though — they continue to rise to any occasion and adapt to new circumstances.
Thank you to all those who participated in this year's survey. Your insights help us to understand the dynamics of the pool/spa retail landscape and are invaluable as we gain a deeper understanding of what shapes this crucial sector of our industry. We invite you to dive into the 2024 Retail Report, and reflect on the findings of another momentous year.
In the Showroom
A well-thought-out showroom is important. Not only does it provide a better experience for customers, new and old, it allows them to visualize how products will look and function in their own spaces. We found that 80% of survey respondents changed out displays in the last year, helping to rotate merchandise and point customers in the right direction.
This year in retail trends, the spa was king, as 54% of retailers reported hot tubs are the most popular outdoor item in their showroom. Grills, on the other hand, were the most popular in 12% of survey respondents. As for pricing, dealers (87%) continue to adjust prices to compensate for higher costs.
The Customer
The ability to turn customers into repeat buyers — and prevent them from switching to a competitor — is important. We asked survey respondents why their customers stay, and they pointed to key values like "because we are family-owned, honest and educated."
These loyal customers can help to garner referrals and positive customer reviews. As such, 65% of survey respondents reported Google is the best channel to collect customer reviews, with emails coming in second at 47%.
Labor
Both recruitment and retention issues continue to plague the industry, and the retail sector is no exception. Survey respondents describe the hiring process as "exhausting, frustrating and impossible." But some remain positive, with words of encouragement, including "adventurous, hopeful and exciting."
Retailers have found that a referral program for employees is a helpful way to recruit new talent, and the majority has put a rewards program in place for each referral that works out, which includes anything from a sizable bonus to paid-time off.
The Hot Tub Section
When speaking with retailers, we love to hear how customers' lives are changed from the wellness benefits of hot tubs, and even more so over the past few years. Supply problems have vastly improved from pandemic-level demand, as 45% of survey respondents report wait times are no more than one month (a nice increase from 24% in 2021).
It appears that customers are prioritizing bather capacity as their No. 1 priority when selecting a hot tub, while hydrotherapy/rehabilitation options and ease of use fall close behind. We also asked dealers to select what accessories were trending high this past year. Spa steps, cover lifters and covers earned the top three slots, while umbrellas/canopies (14%) and privacy screens (5%) ranked at the bottom.
We continue to track how industry professionals feel the swim spa sector is doing, and the demand remains high. Seventy-one percent of respondents feel the demand for swim spas — which offer a great alternative to inground pools and exercise benefits — has grown.
Rachael Pritz, Vice President, RB Retail & Service Solutions
INDUSTRY SPOTLIGHT: RB RETAIL & SERVICE SOLUTIONS
Industry-specific software for pool and spa businesses can be particularly helpful as our industry begins to level out after the post-pandemic boom. Fully integrated business software allows business owners to make data-driven decisions that can open the door to profitable marketing strategies to expand in new areas and help recession-proof their business. Rachael Pritz, Vice President of RB Retail & Service Solutions, lends her expertise on the subject below.
AQUA: Perhaps more than ever before, pool and spa retailers are having to adjust to ever-changing market conditions. How can software help them to adjust quickly and successfully?
Rachael Pritz, RB Retail & Service Solutions: Industry-specific software is much more beneficial to pool and spa businesses than off-the-shelf software because it provides the tools and information they need to quickly pivot and adjust to rapidly changing market conditions. As the market prepares for a potential recession, it’s essential for specialty retailers to collect all business data in ONE system that can be accessed at ANY time in order to effectively compete against online retailers and big-box stores. This includes complete vendor integrations to ensure optimal inventory levels and to provide the best customer service. Effective business software must integrate billing and accounting while also tracking customer equipment and water test results, and providing integrated mobile capabilities to improve efficiency in the retail store and with service techs in the field. Industryspecific software benefits management by providing real-time data, so pool and spa businesses can adjust and implement strategies based on market changes. RB Retail & Service software is designed and continuously updated by veteran industry experts to provide a completely integrated software system that manages ALL business processes from sales and purchasing to billing, service and marketing, allowing business owners to quickly adapt to ever-changing market conditions.
AQUA: What is new in pool and spa specialty software?
RP: We now offer a new EZ SHOP app to enhance the shopping experience, as it provides ‘scan and go’ shopping to customers within the retail store. Once downloaded, the app allows current customers to login to their online bill pay to view their transaction history, create shopping lists and scan the products they need as they walk through the store. The app syncs with any discounts within the customer’s profile and can even be programmed with specials such as BOGO items. Scanned items are then quickly pulled for payment at check out. Retailers are already reporting that the new EZ SHOP app is helping to build customer loyalty by improving the customer’s shopping experience.
RB has also added new functionality that makes it simple for pool professionals to pass along credit card fees using our SmartPay integration. SmartPay allows retailers to pass along credit card fees to consumers by simply determining what percentage of each transition to charge customers (between 0 and 4%) as a ‘program fee.’ Once a value is entered, when an electronic payment method is used, a Program Fee will automatically be added. This allows retailers to pass along this cost to increase profits quickly and automatically.
AQUA: Why is it important for pool/spa retailers to utilize this technology?
RP: Pool and spa businesses are up against fierce competition, especially as consumers become more cautious about their purchases. It’s therefore imperative to utilize every possible technology tool available to ensure profit margins, control inventory and provide the best customer service. For example, our clients routinely mention our Water Lab Sync integration being particularly helpful during the busy summer months because it saves time and provides invaluable information to increase profits. Water Lab Sync connects with industry-leading water testing software to eliminate double data entry into two systems and allows users to look up past water test results, saving time at the water lab and at the cash register. Customers also love that the Water Lab Sync functionality combines with our Mobile Live Service app so service technicians no longer need to bring paperwork back to the office but instead, use their mobile device in the field.
Having a brick-and-mortar retail store provides a competitive advantage, yet consumers also want an option to search and shop online, complete with delivery options. As a result, RB offers a ‘Shopping Cart’ software feature created for pool and spa businesses that were not originally equipped with an e-commerce presence. This feature provides a fully equipped shopping experience, easy checkout and curbside pick-up or delivery. It’s the perfect way to make sales management easier and keep your business thriving despite ever-changing market forces. Online sales continue to grow, and retailers agree that re-training customers to use online shopping for pool and spa supplies, clients to shop your online store to order, pay, and arrange for delivery or pick-up of their chemicals and more. Retailers report they have expanded their marketing reach using their online store by marketing to those that might not have visited their brickand- mortar store because of the distance.
Industry-specific business software can open the door for pool and spa retailers to implement profitable marketing strategies and potentially expand their business in new areas. Imagine the potential added revenues that could be gained if every employee in your company had 20 additional hours per week to follow-up on sales leads, make additional service calls, or attend to customers in-store during peak season by implementing this technology!
