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.
Bosses in the dark
Business bosses, it seems, are as much in the dark as the investors who buy stocks in their companies.
That is the worrying conclusion of a new survey from Booz & Co.
After quizzing more than 800 senior managers, it found 40 percent doubted that their company’s leadership had a credible plan to address the economic crisis and an even higher number – 46 percent – were not sure that their top management could carry out the plan, credible or not.
Alarmingly, even at the CEO and board level, one third of those responding were sceptical of their own plans.
“It appears that the speed with which the crisis hit and the subsequent volatility has left many senior leaders uncertain of how to move forward and whether they should be in survival or opportunity mode,” says Booz partner Jake Leslie Melville.
But despite not being sure what to do, senior managers are clinging on hopefully. More than half of those questioned thought the crisis would ultimately have a positive impact on the competitive position of their companies.
I agree. I find it odd that so many people that I talk to who are in positions to formulate plans for operating in a recession appear to be simply denying it.
