2026 State of the Industry: Retail Report

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AQUA 2026 Retail Report cover sponsored by Retail & Service Solutions, featuring water background and cash register icon

If there’s one word that keeps coming up in this year’s Retail Report, it’s space.

Not just in the showroom — though retailers overwhelmingly cited space as their biggest showroom challenge — but across the business. Less margin for error. Less room to absorb costs. Less patience from customers. And, in many cases, less willingness to simply “spend more” to grow. Less space all around. 

The 2025 season reflected that tension. Nearly half of retailers reported revenue growth, while a sizable share saw declines, a split that underscores just how uneven the market has become. Inflation, tariffs and interest rates continue to shape decision-making, yet more than half of retailers still say they feel optimistic heading into 2026. Not because conditions are perfect, but because they’re learning how to operate within them.

That mindset is showing up everywhere. Most retailers are holding marketing budgets steady rather than increasing spend. Nearly 70% say AI hasn’t meaningfully impacted their business, at least not yet. And while wellness products like saunas and cold plunges are gaining attention, adoption remains far from universal. In other words, this isn’t a year of sweeping change — it’s a year of selective moves.

Even the customer has shifted. Buyers are more price-sensitive, more informed and more deliberate in how they shop. They still want the benefits — relaxation, hydrotherapy, a better backyard — but they’re thinking harder about how and when they spend.

For retailers, that’s forcing a recalibration. Growth isn’t coming from doing more of everything. It’s coming from doing a few things better — refining product mix, leaning into service, improving the in-store experience and making smarter bets on where the market is headed.

That may not be as flashy as the boom years. But it may be more sustainable. 

We invite you to read on for the 2026 State of the Industry Retail Report.

Business Performance & Outlook

2025 was a tale of two businesses. Nearly half of retailers saw growth, while others felt the squeeze — proof not every retailer is experiencing the same market right now. Still, most are heading into 2026 feeling optimistic, even as tariffs, inflation and interest rates continue to shape how they operate.

2025 retail revenue comparison chart showing year-over-year changes with increase, decrease, and stable categories from 2020-2025

Retail report showing 2026 business sentiment survey with pie chart displaying 56% positive, 37% unsure, and 8% pessimistic outlooks

2025 retail report showing economic impact on businesses with customer testimonials about inflation, tariffs, and market challenges.

Retail report showing 2024-2025 survey results on natural disaster impact, with yes/no response bars indicating 19% yes and 9% no in 2024, 14% yes and 8% no in 2025.

Retail report showing how businesses were affected by natural disasters and severe weather events

Staffing & Workforce Realities

On paper, staffing looks steady. In practice, it’s anything but easy. Retailers continue to rely on referrals to hire and company culture to retain, but nearly half say reliability and work ethic are still hard to find — shifting the conversation from how many employees you have to how strong they are.

Retail staffing report showing 59% stayed the same, 25% increased, and 16% decreased over the past year

Retail hiring report showing employee recruitment sources, with current employees at 56% being the primary hiring method.

Retail report showing survey results: 39% cite company culture, 28% pay, 26% schedule flexibility, 4% career path, and 3% other as benefits improving employee retention.

Bar chart showing hardest retail skills to find: reliability/work ethic 48%, technical knowledge 21%, sales skills 11%, leadership 8%, willingness to learn 6%, customer service 5%

Marketing That Moves the Needle

When it comes to marketing, the fundamentals still win. Word-of-mouth remains the most effective strategy, followed closely by social media and in-store events — reinforcing that connection, not just visibility, drives results. Even so, most retailers are holding their marketing budgets steady in 2026, signaling a shift toward refining what works rather than simply spending more.

Retail report showing 2025 marketing strategies effectiveness and 38% budget increase for 2026

AI may be everywhere in conversation, but adoption in the pool and spa retail space remains limited. While a small group of respondents pointed to AI as a source of future confidence, nearly 70% say it hasn’t played a meaningful role in their business yet — suggesting the industry is still in the early stages of understanding where and how the technology fits.

Retail report comparing AI adoption rates: 9% yes in 2024 versus 30% yes in 2025, with corresponding no responses of 81% and 70%

Product Mix & Sales Drivers

The staples are still doing the heavy lifting. Chemicals, equipment and hot tubs continue to dominate sales, but beneath that stability is a growing push toward diversification. Nearly half of retailers added new products or brands — from automation and water care systems to saunas and cold plunges — signaling a shift toward building around the core, not replacing it.

Retail Report infographic showing 2025 top-selling products including heaters, pumps, hot tubs, pool cleaners, filters, and chemicals in green tones

Retail report showing survey results on new product categories for 2024 and 2025, with illustrated person holding clipboard

Retail report showing new products and brands including pool covers, spas, hot tubs, chemical monitoring systems, and pool cleaners.

Pricing, Financing & Revenue Strategy

Raising prices isn’t optional — it’s reality. Most retailers increased prices in 2025, and more than 80% plan to do it again in 2026, as inflation, tariffs and supplier costs continue to squeeze margins. Some are absorbing what they can, others are adjusting — but across the board, customers are feeling it, making financing an important tool in an increasingly price-sensitive market.

Retail report showing 12-month price changes: 37% increased moderately, 36% increased slightly, 13% increased significantly, 9% stayed same, 5% decreased

Retail report showing price adjustment survey results and financing importance metrics in green bar and pie charts

The Wellness Economy Takes Hold

Wellness is growing — just not at the same pace for everyone. Hot tubs remain the clear leader, while saunas, cold plunges and swim spas continue to gain attention. For retailers, it’s less about whether to enter the category, and more about how far to take it.

Retail report showing 2025 wellness product growth with hot tubs at 54%, saunas 13%, swim spas 8%, cold plunge 8%, and other products 17%

Retail report showing 42% staying the same interest in swim spas, with bar chart displaying annual swim spa sales distribution by quantity ranges.

Retail report survey showing 81% don't sell cold plunges versus 19% who do, with winter snowflake decorations

Retail survey results showing 73% of retailers do not sell saunas and 27% do, displayed as overlapping circles in a Venn diagram format

Retail report showing sauna selling duration: 46% over 10 years, 24% for 3-5 years, 12% for 1-2 years and 6-10 years, 6% under 1 year

The Modern Spa Customer

Today’s spa customer is thinking it through. Hydrotherapy, capacity and ease of use are winning out over flashy features, while practical add-ons like covers and steps still make the cut. But with nearly three-quarters of retailers reporting increased price sensitivity, every purchase is being weighed more carefully.

Retail report pie chart showing annual revenue percentage from hot tub sales across five categories

Retail report showing top five customer priorities when selecting a hot tub, including hydrotherapy options, capacity, ease of use, energy efficiency, and technology features.

Retail report infographic showing spa upgrade preferences with nine categories including covers, spa steps, fragrances, safety locks, towel racks, umbrellas, surrounds, storage, and privacy screens.

Retail report showing sales cycle duration distribution with bar chart and clock illustration in green theme

Retail report showing 75% of customers are not more price-sensitive than a year ago, with pie chart visualization and customer figure illustration.

Showroom Challenges & Growth Opportunities

It all comes back to space. For many retailers, the biggest constraint isn’t demand, it’s room to show it. From limited square footage to inconsistent foot traffic, the challenge is making the most of what’s in front of them. At the same time, opportunity is everywhere — from wellness and service to new markets — if they can find a way to capture it.

Retail report showing showroom challenges with illustrated female employee and two columns listing customer and operational concerns

Retail Report survey showing growth opportunities with three columns of business strategies and recommendations

 

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