Rising chemical prices reduced profit and drove some operators out of the industry
Los Angeles, CA (PRWEB) April 24, 2012
In 2012, the Swimming Pool Equipment Stores industry is expected to record $5.2 billion in revenue. Over the past five years, the industry has experienced only muted average annual revenue growth of 0.8%. The combined effects of the real estate market collapse and declining disposable income during the recession adversely affected demand for aboveground pools, chemicals, equipment and recreational pool items, which led to consistent industry revenue decline from 2007 to 2009. With the real estate market in the greatest downturn since the Great Depression, installations of new swimming pools and hot tubs declined significantly, leading to lower demand for the industry's retailers. “Revenue decline was mitigated, however,” says IBISWorld industry analyst Caitlin Moldvay, “by continued demand for maintenance and replacement parts for existing swimming pools.” Moreover, in 2010, the economy and the residential real estate market turned the corner and yielded improving demand for industry retailers. In 2012, industry revenue is forecast to rise, helping counter poor performance from the recession and slow recovery period.
Over the five years to 2012, the number of swimming pool equipment stores has declined at an average annual rate of 0.6% to an estimated 5,415 stores. According to Moldvay, “Adverse conditions during the recession resulted in a number of industry retailers closing their doors.” Furthermore, rising chemical prices, most notably chlorine, have led to lower profit margins for industry retailers, prompting heightened store closures. The Swimming Pool Equipment Stores industry is fragmented, with the majority of operators servicing narrow regional markets. However, significant players like Leslie’s Poolmart Inc. and Pinch A Penny operate on a wider scale.
In the five years to 2017, the industry will benefit from a rebound in the construction sector and rising per capita disposable income among consumers. Over the five-year period, housing starts are projected to rise as low interest rates and pent-up demand foster growth in the real estate market, which will lead to a greater number of swimming pool installations. These healthy trends will cause industry revenue to grow over the next five years. For more information, visit IBISWorld’s Swimming Pool Equipment Stores report in the US industry page.
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IBISWorld industry Report Key Topics
Companies in this industry primarily sell aboveground swimming pools and hot tubs as well as swimming pool equipment, including pool chemicals, cleaning and maintenance equipment and recreational items intended for swimming pool use.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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