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Salon/Spa Performance Index Inches Upward in Q4

Posted: February 8, 2013

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Each of the five indicators for the Current Situation Index improved in the fourth quarter, led by an increase in sales and customer traffic. However, despite these across-the-board improvements, the PBS says overall levels still remain below the stronger marks reached in the first half of 2012.

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) slipped 0.2% to 104.3, marking the second consecutive modest drop. Despite declining 0.2% in the third and fourth quarters, the Expectations Index remains above 100, which PBA says is an indicator that salon/spa owners are optimistic about growth in the coming months.

The decline in the Expectations Index was led by slightly lower optimism on service and retails sales, which are the primary proponents for revenue and growth. Staffing levels are expected to increase for a large percentage of salons and spas, which if comes to fruition, will help benefit the larger economy.