Spas are a leading indicator
July 3rd, 2009 • Posted by Bill Bice • Permalink
If you spend too much time tracking the financial mess like I do, there is a ton of talk about leading and trailing indicators for the economy. Job losses, for example, are a trailing indicator — we'll still be shedding jobs months after the economy has turned around. It's the 90% of people that still have jobs that will lead the recovery, and we'll know it's happening first in the spa industry.
Anitra Brown points us to the AP article, What will signal consumers are back? Check the spa.
Anitra says:
Todd Walter, chief executive officer of Red Door Spa Holdings, is looking for customers to splurge again on facials and massages, rather than sticking with maintenance services such as hair cuts, color and waxing. "He'll also be watching for first-time customers, of whom there's been a 'fairly significant falloff' during the recession." Walter is also looking for a rebound in sales at resort spas, which were hurt more than day spas as people cut back on vacation travel.
I've been very fortunate in that my service, eyelash extensions, is viewed by my clients as an essential "maintenance service." I agree with the assessment that there has been a "fairly significant falloff" in new business. However, I am starting to see a slight increase in new client inquiries and appointments. And, in talking to my clients, the perception in the consumer marketplace is that the economy is improving.
Hang in there everyone!