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How the Australian pool and spa business is performing

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Why invest in a pool care franchise? Well, with Aussies’ ongoing passion for a backyard pool there’s a regular service demand and, despite the pandemic, franchises are reporting a positive sales outlook.

Although the market has been constrained over the past five years due to high levels of competition there is an anticipated growth over 2021 and 2022 as the current travel restrictions remain in place and families divert their holiday budget into new pools and spas.

Swimart’s marketing manager Nathan Hallahan can attest to pool brands being the beneficiaries of lockdown spending.

“International travel restrictions and domestic border closures have fuelled a renewed focus on home improvements, as consumers invest in installing a pool rather than taking a holiday.”

According to IBISWorld’s report, Swimming Pool and Spa Equipment Stores in Australia, February 2021, a renewed focus on home improvements is expected to power the pool market in 2020-21.

“For example, data for Clark Rubber indicated that the company exhibited a 200 per cent increase in demand for its mid-range pools over the year through November 2020, compared with the previous year. However, logistical delays and reduced manufacturing activity in overseas markets have negatively affected the availability of industry products sourced from overseas markets.”

Clark Rubber is not alone in reporting upbeat trading.

Poolwerx saw November 2020 shape up as its biggest sales month on record, with retail outlets hitting a 23 per cent rise in revenue.

Overall the pool service brand has boosted sales year on year by 15 per cent.

There have been subtle changes in the product and maintenance focus.

IBISWorld report author Claudia Burgio-Ficca writes  “A shift in demand towards saltwater pools and other water purification methods has hindered demand for pool chemicals over the period, while the pool equipment, accessories and toys segment has been negatively affected by increasing competition from external players.”

However the range of packages available for all pockets has helped drive demand for pools and spas and industry revenue is forecast to grow at an annualised 2.1 per cent through to 2025-26, to $1.1 billion.

Clark Rubber, Poolwerx and Swimart all operate retail stores backed with mobile maintenance services. The three franchise chains are the leading brands in the sector, each with an estimated five per cent share of this highly disparate marketplace.

And it’s good news ahead with the report indicating a positive outlook in the market. A rise in discretionary income and a more positive consumer sentiment are expected to lead to revenue growth over the period.

“Income growth is anticipated to boost the spending power of consumers, enabling them to afford more high-end pool options,” the report suggests.