Correlations between downturn and long salon queues
Who said cosmetics are recession-proof and would be the last to be hit in the economic downturn? (I, at least, thought so.)
But whoever said so seems to be wrong. The Professional Beauty Association‘s three main tracking indices for the salon and spa industry extended a decline in the third quarter of 2011 to hit their lowest level in two years.
The Salon & Spa Performance Index (SSPI) is a quarterly composite index that tracks the health and outlook of the U.S. salon and spa industry. It fell 1% from the second quarter to 101.9, posting the second consecutive quarterly decline.
However, the SSPI and the two remaining indices (Current and Expectations indices) remain above a base level measurement of 100 (above 100 indicates expansion), so the situation is not that bad.
“While the third quarter is typically slower for many salons and spas due to the summer holiday season, the trend results from the Salon & Spa Performance Index are discouraging,” said Steve Sleeper, Executive Director for the Professional Beauty Association.
The Current Situation Index, which measures current trends in five industry indicators (service sales, retail sales, customer traffic, employees/hours, and capital expenditures) fell to 100.3 in the third quarter — down 1.1% from the second quarter 2011.
The Expectations Index fell to 103.5, down 0.9% from the second quarter 2011 and 1.7% from the third quarter 2010.
And the survey showed the majority of salon/owners do not expect to make capital improvements in the next six months.
So you may have to queue even longer at your corner beauty salon.