Pulse June 2024 | Page 54

SNAPSHOT SURVEY

RETAIL SALES EFFORTS

RETAIL SALES IS ALWAYS A POPULAR TOPIC for spa professionals , with members looking for proven methods on how to move products off the shelves , reconsidering the number of products to carry , designing creative retail displays and implementing innovative ideas to increase retail sales .
The first ISPA Snapshot Survey of Spring 2024 asked respondents to share details about their retail sales efforts . Survey responses highlight the percentage of spas ’ total revenue derived from retail sales ; average sales-to-service ratio ; incentives spas use to increase retail product sales ; retail promotions and much more .
Retail sales are a significant revenue generator
In 2023 , what percentage of your spa ’ s total revenue was derived from retail sales ?
PERCENTAGE OF REVENUE DERIVED FROM RETAIL SALES
NEARLY HALF ( 48 percent ) of
Less than 5 %
17 %
respondents noted 10 percent or more of their total revenue
5 % -9.9 %
36 %
in 2023 was derived from retail sales . A total of 95 percent of
10 % -14.9 %
26 %
respondents said their front
15 % -19.9 %
12 %
desk staff / spa concierge were
responsible for closing those
20 % -24.9 %
5 %
retail sales .
More than 25 %
5 %
Some spa services align naturally with complementary retail offerings
DIFFERENT SPA SERVICE SEGMENTS posted varying retail sales-to-service ratios , with facial services being the most likely to generate retail sales . The most popular incentive to increase retail product sales indicated was to offer a free gift with purchase ( 68 percent ), followed closely by free product samples with a service ( 67 percent ).
What is your spa ’ s average retail sales to service ratio for the following treatment areas ?
SALES TO SERVICE RATIO
Massage
0-10 % 11-20 % 21-30 % 31-40 % 41-50 % > 50 %
75 % 8 % 5 % 2 % 1 % 10 %
Facials
18 %
44 %
20 %
6 %
4 %
9 %
Nail Services
86 %
10 %
4 %
0 %
0 %
0 %
52 PULSE n JUNE 2024