The Retail Sales in the Day Spa Industry survey is a study of the first-ever Day Spa Association (DSA) retail sales data with the purpose of quantifing what is really happening with current industry retail sales patterns. Monte Zwang notes, “We wanted to report the percentage retail has on total day spa sales income. We also wanted to share how spas select the professional products they sell, where they go to find them/buy them, how they market these products and their price points as well as the incentives used for their staffs. For the very first time, we have asked the day spa industry how they handled retail product sales and what results they were experiencing."
Full-service salons, day spas, medical spas, holistic wellness centers, hotel and destination spas were surveyed. More than half of the respondents generated less than $400,000 in annual gross revenues while 25% reported sales volumes over the one million dollar mark. Almost 60% of the respondents had a retail to service sales revenue of 15% or less, while 35% had retail sales revenues of greater than 15%.
With the average spa an 11% to 15% retail space is allocated, while 40% of day spas do not currently allocate any extra space to create a special retail environment. Retail sales were proven to have a direct correlation to the allocated space. Commissions for retail sales stayed close to industry estimates with most employees paid in the 10-15% commission categories. This study shares how most day spas and spas are now streamlining their product lines with skincare, body care, makeup and nailcare as the top four retail sales product priorities controlling 60% of all retail sales. Hair care now generates under 9% of retail sales in spa environments. Whereas the ultimate decision to add new product lines is made by the spa owner, more than 40% of the decisions are now made from manufacturer and distributor catalogs with 35% of buying decisions made from on site or telephone sales.
This new Retail Report sells for $145 for DSA members ($175 for non-members) and it can be ordered online. 201-865-2065