CHICAGO — Drycleaners across the country are still suffering from a sales decline, and many seem to be cutting payroll in order to make ends meet, according to a recent AmericanDrycleaner.com StatShot survey.
The South saw the biggest drop in sales for January 2010 compared to January 2009, with a reported average 9.9% drop. The West came next, with operators reporting a 7.1% decrease, followed by the Midwest and Northeast with 6.4% and 6.2% decreases, respectively.
“Sales are down 25% from last January, and that was down 20% from the previous,” said one operator in the South.
Midwestern operators made the biggest cuts in payroll for January 2010 compared to the same month last year, reporting an average 10.0% drop. The South followed with a reported 7.6% cut. The West and Northeast saw 5.1% and 4.9% cuts, respectively.
“Although we are seeing less work come through the doors, we have been forced to manage our costs, and therefore are seeing the business be more profitable,” one operator in the Northeast said. “We are hopeful for an increase in business this year vs. last year.”
AmericanDrycleaner.com’s StatShot includes information on sales, wages, costs and other financial data based on anonymous survey information provided by industry operators. Subscribers to American Drycleaner’s Wire e-mails are invited to participate in these unscientific surveys, which are conducted online via a partner website, on a regular basis. Readers are encouraged to participate, as a greater number of responses will help to better define industry trends.
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