CHICAGO — A new year for many means a clean slate and a fresh start. But the challenges of Dec. 31 don’t magically go away on Jan. 1. There are steps to make and conditions to take into account to make 2025 a success. 

In Part 1 of this series, we looked at how labor was going to be a continuing challenge for dry cleaners, as well as how finding proper insurance is an ongoing concern. We’ll continue today by exploring an opportunity many cleaners might not be aware of, as well as how consolidation is reshaping the industry.

Amid the challenges, Christopher White, executive director of America’s Best Cleaners (ABC), identifies a surprising growth area that most operators haven’t fully recognized: alterations.

“The need for alterations is growing,” says White when asked about emerging trends. “I just wrote a white paper for all my affiliates, and we’re seeing that now with the influx of these weight-loss drugs like Ozempic^®. We’re seeing huge demand for alterations.”

The GLP-1 weight-loss medications have created a surge of demand as people lose significant amounts of weight and need their wardrobes adjusted. Combined with the growth of resale markets and people buying secondhand clothing that needs tailoring, alteration services are experiencing unprecedented demand.

“The biggest growth segment in our affiliation right now is alterations,” White says. “We cannot get people skilled up fast enough. I have affiliates right now who are actually building out just alteration centers.”

The challenge is finding qualified tailors and seamstresses, which White describes as “a nationwide shortage of people that know how to, or want to, alter garments.”

For cleaners willing to invest in developing alteration capabilities, White sees this as one of the most promising opportunities in 2026.

As the drycleaning industry continues to evolve, the nature of consolidation is changing as older operators age out.

Mary Scalco, CEO of the Drycleaning & Laundry Institute (DLI), believes that consolidation will continue, though perhaps at a slower pace.

“Those that have the wherewithal are now in the position of being able to scoop up those who can’t provide what they can provide,” she says, referring to operators who haven’t invested in routes, kiosks and other convenience services.

White sees the acquisition landscape shifting to larger deals: “I think you’re going to see outside money, and a lot of regional roll-ups of existing, well-known brands and local family-owned businesses being bought by bigger entities.”

The days of small mom-and-pop shops being acquired, however, may be waning. “Most of them are already acquired or they’re going to go out of business,” he says. “They just don’t have enough value for acquisition anymore.”

New competition is also emerging from unexpected quarters. White has seen that laundromats are increasingly competing for wash-dry-fold business, using apps and third-party delivery services to chip away at dry cleaners’ household business.

“They work on a different profit model,” White says. “They’ve got a lot of capital built into equipment that is sitting idle that they just need to fill. And they don’t have to buy a van or pay for a driver or marketing. An app will do that and integrate all that for them.”

Consumer expectations continue to evolve, with convenience becoming the dominant factor in customer satisfaction.

“Less friction, more empathy,” says Dawn Avery, executive director of the National Cleaners Association (NCA), about what customers want. “People want an experience, and they’re willing to pay for it. They don’t really watch price when they’re receiving the best experience of their week.”

Customers increasingly judge dry cleaners by the standards of the giant online retailers, according to Scalco.

“Everybody judges convenience by Amazon,” she says. “That’s the reference point. They say, ‘Well, if I can get it in two hours, how come I have to wait two days?’”

White has seen strong data supporting investment in convenience options, particularly kiosks. Over the past couple of years, his organization’s affiliates and consulting clients who have implemented kiosks correctly “have seen tremendous growth at those locations,” he says.

This success speaks to the realities that drycleaning customers are facing in their own lives.

“The world is not 9-to-5 any longer,” White adds. “Convenience is king. The easier you make it for people to do business with you, the better position you’re going to be in.”

The key demographic driving this demand, he believes, is dual-income households, and particularly those with children: “This group is always going to be a driving force because time is so precious to them.”

Come back Tuesday for the conclusion of this series, where we’ll examine how dry cleaners can best position themselves for today’s customers, and how technology will play a role. For Part 1 of this series, click HERE.