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Salon & Spa Industry Rebounds in Fourth Quarter 2011

Posted: February 7, 2012

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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), increased 0.7% to a level of 104.2. Overall, salon/spa owners are more optimistic about industry growth in the months ahead. Service sales, the core of most salon and spa businesses, was the most encouraging with 67% of salon/spa owners expecting to have higher service sales in the coming six months. Sixty-one percent of salon/spa owners also expect higher retails sales as compared to 7% that expect a decline.

Despite the stronger outlook for sales and the economy, fewer salon/spa owners said they plan to expand staffing levels in the months ahead. Forty-three percent of salon/spa owners said they plan to have higher staffing level in six months. In comparison, only 6% of salon/spa owners expect to reduce staffing levels in six months, matching the proportion who responded similarly last quarter.

The full SSPI report and the "Salon & Spa Tracking Survey" can be found at