Spa Industry

Spas are a growing market, but a luxury that not many can afford regularly. However, opening one in the right market can lead to a profitable business venture. According to Merriam-Webster dictionary, a spa is a commercial establishment providing facilities devoted especially to health, fitness, weight loss, beauty, and relaxation (Merriam-Webster Dictionary, 2016). Since the great recession, the number of spa locations in the United States has increased steadily to about twenty thousand in 2013 (Statista, 2016). Furthermore, those locations earned about 14.7 billion in revenue for 2013 with around one hundred sixty-four million visits. The industry, as a whole, employed almost three hundred fifty thousand people, half of them being part-time employees, in 2014. These figures do not include the other spectrum of the market which can be broken up into beauty and aging products as well as …show more content…
There are a small handful of national competitors, such as Woodhouse, LifeSpa, Red Door, Completely Bare, etc. (Joni, 2011). These spas are available in some states, but not all fifty, unlike many fast food chains; majority of day spas are sole proprietorships or partnerships (Allen, 2011). So understanding the competition is specific to the region that spa will be located, however, it is good practice to assume that there will be at least one spa that will offer opposition. Utilizing the figures from market trends, a store with a steady inflow of customers can average about seven hundred thirty-five thousand in gross revenue from about eighty-two thousand visits a year (Statista, 2016). Assuming that trends continue, the spa and beauty market is a safe investment for entrepreneurs seeking entry. It is safe to assume that in order to compete, the spa would need to be located in an area with a large, wealthy population who enjoy leisure