Amid a drop-off in showroom traffic and the angst that often accompanies a Presidential election year, flooring retailers are navigating through an uncertain business landscape as the second half begins.
While business was down for many in the first half, that was not the case across the board. Case in point is Frazier’s Carpet One Floor & Home, Knoxville, Tenn., which is about 4% up year-to-date and doesn’t anticipate any large swings, positive or negative, in the second half.
While Frazier’s may be the outlier in 2024, some dealers took advantage of a stronger-than-expected commercial business and most benefited by higher average tickets that overcame fewer customers.
“While our traffic is down our numbers tell a slightly different story,” said Greg Loeffler, chief operating officer for Pierce Flooring, which operates multiple locations in Montana. “Our retail replacement sales are trending very closely to last year. Where we are seeing a decline is in builder and property management work, and I believe that’s a direct result of slower new home starts and slower real estate movement due to higher interest rates and inflation.”
After a slow start to the year, the builder and commercial segment for Dillabaugh’s Flooring America, Boise, Idaho, is trending in the right direction, according to Casey Dillabaugh, president. “June has brought signs of life to that market, and we expect the second half of the year to be stronger than the first in those particular segments,” he told FCNews. “Though traffic has been less than normal to begin the year, same retail-sales comps were flat or close to normal in the retail sector. We have buyers, not just shoppers, on the full-service front while our Floor Trader outlet continues to perform well in a market that seeks value.”
For many, the antidote to a sluggish economy is being well positioned across multiple business segments. That has proven to be the case again in 2024. As Matt Wien, partner with Marshall Flooring, Mayfield Heights, Ohio, noted, “We have been able to compensate for slower retail traffic with an increase in builder, commercial and rug channels. We have a positive outlook for the third quarter as retail traffic has picked up a bit. However, we are still tamping down expectations due to the election and how that impacts the market each year.”
Strategies in place
With the Presidential election four months away, dealers are gearing up for what they have come to expect could be a slowdown in business. “I have noticed that every Presidential election year, as we get closer to the election, business usually tapers off,” said Bob Gaither, president of Quality Carpet & Flooring, Akron, Ohio. “It usually picks right back up after the election, no matter who wins. I attribute this to a little uncertainty about the outcome of the election and the fact that many consumers are inundated with the negative political news. This carries over to their willingness to spend money on remodeling projects.”
Others painted a similar picture. “Sadly, I don’t see an uptick in traffic until after the election,” said Cathy Buchanan, president of Independent Carpet One Floor & Home, Westland, Mich. “There is too much uncertainty and discomfort for retail. The crazy thing is June has looked promising with commercial business carrying us through. Our average ticket is much higher than ever before. That’s keeping us stable.”
While some flooring retailers plan to be more conservative with expenditures in the second half and are reducing store hours—or even closing on Sundays—others are ready to pounce on what they see as a market ripe with opportunities. “Our strategy is to stay aggressive with marketing and advertising and continue to maximize every opportunity,” Pierce’s Loeffler said. “We constantly work on our sales process, customer experience and project management skills, not only to provide the very best service possible for all our clients but also to capture the greatest amount of gross profit from every invoice by eliminating mistakes and communication issues.”
Marshall Flooring’s Wien said the objective is to stay aggressive and take as much market share as it can. “It’s the perfect time to grow our business,” he noted.
Likewise, Dillabaugh’s Flooring America has no plans to pull back. “Marketing spend and client procurement efforts will continue full steam ahead,” Dillabaugh said. “We expected this year to start better than it has; however, we’re trusting in the slow start just being a slight delay to a really strong recovery and healthy 2025.”
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