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.
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.
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.
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.
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.
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.
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.
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.
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.
INDUSTRY SPOTLIGHT: RB RETAIL & SERVICE SOLUTIONS
Rachael Pritz, Vice President, RB Retail & Service Solutions
AQUA: RB RETAIL & SERVICE SOLUTIONS RECENTLY LAUNCHED A COMPREHENSIVE MARKETING SERVICES PROGRAM FOR DEALERS. WHAT NEED WERE YOU SEEING IN THE MARKET, AND HOW DOES THIS EXPAND YOUR ROLE BEYOND SOFTWARE?
Rachael Pritz, RB Retail & Service Solutions: As we’ve grown alongside our dealers, it became increasingly clear that having the right software alone wasn’t enough to drive success. Many of our customers were asking, “We have the tools — but how do we actually bring in more business and stand out in our local markets?” There was a real gap between operational capability and consistent, effective marketing execution.
We were seeing dealers struggle with things like maintaining a strong online presence, managing campaigns, and finding the time or expertise to market themselves strategically. That’s the need that really stood out — practical, done-for-you or guided marketing support that’s tailored specifically to their industry.
Launching our marketing services program is a natural extension of our role. We’ve always been focused on helping our customers grow, not just running their businesses more efficiently. This expands us beyond being a software provider into a more holistic partner — one that supports both the operational and revenue- generation sides of the business. It’s about helping our dealers not only manage their business better but also win more business in the first place.
AQUA: YOU’VE ALSO INTRODUCED NEW INTEGRATIONS LIKE DOCUSIGN WITHIN THE PLATFORM. HOW DO TOOLS LIKE THIS IMPACT DAY-TO-DAY EXPERIENCE FOR RETAILERS AND SERVICE TEAMS?
RP: From our perspective, every integration we introduce must pass a simple test: Does it make our customers’ day easier and help them move faster? DocuSign is a great example of that in action.
Before, many dealers were still relying on printed documents, manual signatures, scanning, or back- and-forth emails to finalize agreements. That slows everything down, especially in service environments where speed and customer convenience really matter. By bringing DocuSign directly into the platform, we’re removing those friction points entirely.
Now, teams can generate documents, send them for signature, and get them completed — all without leaving the system. For the service side, that means faster approvals, quicker job turnarounds, and a more professional, seamless customer experience. For retail, it helps to close deals faster and keeps everything organized and traceable.
It also reduces errors and paperwork, which is a big deal. When everything is digital and integrated, there’s less risk of lost documents or missed steps, and more visibility across the team.
At the end of the day, tools like this aren’t just “nice to have” — they fundamentally streamline workflows. It’s about giving our customers back time, helping them operate more efficiently, and making every interaction with their customers smoother and more modern.
AQUA: RB HAS LONG FOCUSED ON CONNECTING RETAIL, SERVICE AND OPERATIONS IN ONE SYSTEM. WHY IS THAT LEVEL OF INTEGRATION BECOMING MORE CRITICAL FOR POOL AND SPA BUSINESSES TODAY?
RP: What we’re seeing in the pool and spa industry is that businesses can no longer afford to operate in silos. The customer doesn’t think in terms of “retail,” “service,” or “back office” — they just see one brand, one experience. If those pieces aren’t connected internally, it shows up externally in the form of delays, miscommunication, or inconsistent service.
That’s why having retail, service, and operations fully integrated in one system is becoming so critical. When everything is connected, information flows seamlessly — whether it’s a customer’s purchase history, their service schedule, water test results, or billing details. That gives teams full visibility and allows them to make better, faster decisions.
For example, a retail associate can see that a customer has a service visit scheduled, or a service tech can access purchase history before arriving onsite. That kind of context leads to better conversations, more personalized service, and ultimately stronger customer relationships.
It’s also about efficiency. Disconnected systems create duplicate work, manual entry, and more opportunities for error. Integration eliminates a lot of that friction, which is especially important right now as businesses deal with labor challenges and increasing customer expectations.
At the end of the day, our goal has always been to help businesses run smarter and deliver a better customer experience. As the industry becomes more competitive and more digitally driven, that level of integration isn’t just a differentiator anymore — it’s becoming a necessity.
AQUA: RETAILERS HEAR A LOT ABOUT BEING "DATA-DRIVEN." WHAT DOES THAT ACTUALLY LOOK LIKE IN PRACTICE FOR A POOL AND SPA BUSINESS?
RP: That’s a phrase that gets used a lot, and I think sometimes it can feel a little abstract. For a pool and spa business, being “data-driven” isn’t about dashboards for the sake of dashboards — it’s about using the information you already have to make better, more confident decisions every day.
In practice, it starts with visibility. Knowing what’s actually happening in your business in real time — what’s selling, which customers are coming back, where your service team is spending time, and where you might be losing opportunities.
For example, on the retail side, it can be as simple as understanding your top-performing products by season, or identifying customers who haven’t been in recently and reaching out with the right promotion. On the service side, it’s looking at route efficiency, technician productivity, and identifying gaps in your schedule that could be filled.
It also means connecting the dots across the business. Maybe a customer is buying chemicals frequently but isn’t on a service plan — that’s an opportunity. Or maybe certain products are consistently tied to higher-margin jobs — that’s something you can lean into.
The key is turning that data into action. Not just reports, but prompts and insights that help you and your team know what to do next — who to call, what to stock, where to focus.
At the end of the day, being data-driven is really about running your business with intention instead of intuition alone. It gives you clarity, helps you spot trends earlier, and ultimately puts you in a position to grow more predictably.
AQUA: LOOKING AHEAD, WHAT CAN INDUSTRY PROFESSIONALS EXPECT FROM RB RETAIL & SERVICE SOLUTIONS IN THE NEXT FEW YEARS?
RP: Looking ahead, I think what industry professionals can expect from RB is a continued evolution from being a software provider into a true growth partner for their business.
At our core, we’re still deeply committed to delivering the most robust, industry-specific platform — but that platform is going to keep getting smarter, more connected, and more accessible. You’ll continue to see investment in cloud-based technology, mobile capabilities, and real-time data access so owners and teams can run their business from anywhere with complete visibility.
A big focus for us is expanding integrations. The pool and spa business is complex — it touches vendors, water testing, e-commerce, marketing, payments — and we want RB to be the hub that connects all of it seamlessly.
You’ll also see us doubling down on helping dealers drive revenue, not just manage operations. That includes things like marketing services, smarter customer insights, and tools that help identify opportunities — whether that’s improving inventory decisions, increasing service efficiency, or creating more targeted customer engagement.
Another important piece is our role within the industry itself. Through partnerships like our work with the Pool & Hot Tub Alliance, we’re focused on staying closely connected to what dealers need and helping elevate best practices across the industry.
At the end of the day, everything we’re building toward is about simplicity and growth. The industry isn’t getting less complex — but our goal is to make running your business feel more manageable, more connected, and ultimately more profitable.
