Salon Industry Rebounds in Fourth Quarter 2011

The Professional Beauty Association's Three Main Tracking Indices for the Salon & Spa Industry See Increases After Three Quarters of Decline

Driven by stronger sales and traffic levels and a more optimistic outlook for sales growth and the economy, the Professional Beauty Association's (PBA) three main tracking indices for the salon/spa industry, which include the Salon & Spa Performance Index (SSPI), Current Situation Index, and Expectations Index, rose in the fourth quarter of 2011. Following three straight quarters of decline and having hit their lowest levels in two years in the third quarter of 2011, the positive results for fourth quarter 2011 are a welcome relief to the professional salon and spa industry.

The SSPI, which is the main index of the three, is a quarterly composite index that tracks the health and outlook of the U.S. salon/spa industry. The SSPI rose 1% from the third quarter of 2011 to stand at 102.9 in the fourth quarter. A base level measurement of 100 is used, with values above considered positive.

"The salon and spa industry remains resilient. As with the broader economy, it is encouraging to see positive growth and expansion as indicated by the Salon & Spa Performance Index," said Steve Sleeper, Executive Director of the Professional Beauty Association.

Despite the stronger outlook for sales and the economy, fewer salon/spa owners said they plan to expand staffing levels in the months ahead. Forty-three percent of salon/spa owners said they plan to have higher staffing level in six months. In comparison, only six percent of salon/spa owners expect to reduce staffing levels in six months, matching the proportion who responded similarly last quarter.

The full SSPI report and the "Salon & Spa Tracking Survey" can be found at

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