Floor covering retailers are a resourceful lot. No matter the circumstances, they seem to find a way out of a predicament. In the first half of 2025, for example, those in flooring retail have confronted persistently high mortgage rates and tariffs to post results that—in some cases—have safely exceeded year-ago levels.
In fact, FCNews found more dealers reporting double-digit increases than those who said business was flat. “We’re positive for the year,” said Adam Joss, president of The Vertical Connection Carpet One, Columbia, Md. “Between tariffs, cuts to government spending and other noise in the market, we’re happy to be where we are—which is up 10% at the end of May.”
Joss’ sentiments were echoed by several others. “Business this year has been great for us,” said Ryan Boender, owner/general manager of Sackett’s Flooring Solutions, Kalamazoo, Mich. “We have grown 15% this year compared to this time last year. We have had a lot of walk-in traffic and an uptick in commercial projects.”
Expanding into cabinets provided a first-half spark for Ted’s Floors & Beyond, Anniston, Ala. After a dismal start to 2025, in which sales were down 25% over the first two months, activity picked up noticeably. “As of May 31, we are now up 10% over 2024,” said Ted Gregerson, president. “We are definitely reaping the rewards for diversifying into the cabinet business in 2023 as we continue to write up really large kitchen and bath total makeover sales.”
Gregerson said the first week of June featured more of the same, namely robust sales. “If things have stayed good for us to this point, we really do not see any reason that sales will begin to slack off the last half of this year. We had a record year in 2024 as we eclipsed $10 million sales for the first time in the history of our company, and we have every reason to believe we are going to break that record again.”
Views of tariffs
While the national average on 30-year fixed mortgages remained just below 7% in the first half (it was 6.9% on June 10), retailers say they have been able to work around it by focusing on other areas. Tariffs is a different animal, however, given its unpredictability. Some dealers say the tariffs have had little impact on their business so far, but others say it has spooked consumers enough to keep them on the sidelines.
“Tariffs have played a significant role, not just economically but also psychologically creating uncertainty in the market, paralyzing retail shoppers who choose to hold out until things feel safer,” said Aaron Johnson, owner, Johnson & Sons Flooring, Knoxville, Tenn. “It’s been a challenging period for us in the retail sector. We’ve seen a decline in retail traffic, which has directly impacted our sales volume.”
But in typical flooring entrepreneur fashion, Johnson has been able to circumvent some of these challenges by leaning on his partnership with domestic manufacturers, namely Mohawk. “Despite the obstacles, pivoting our marketing efforts toward these tariff-free products has started to yield positive results,” Johnson said. “It’s been encouraging to see this strategic shift contribute to a gradual recovery in recent months.”
About All Floors, with two Pennsylvania locations, has fared relatively well in the first half despite unrelenting tariff talk, which has unsettled markets, according to Tom Heffner, president. “Regarding the tariffs, I think it’s early to comment on the impact other than to say the mere discussion of it has created an uneasiness with both our commercial and builder clients,” he told FCNews. “I think the same is the reason for a soft spring in our residential business. While I recognize the necessity to pass on the tariff price increases, they will likely have a further cooling effect on business for the second half of the year.”
To counter the potential slowdown throughout its supply chain, Sterling Carpet & Flooring in Anaheim, Calif., increased its inventory levels in advance of tariffs to offset any future price increases. “We have seen some extended back orders on the wood side, but the supply chain has been fairly steady otherwise,” said Dan Mandel, owner. “We’ve had a great first half of the year. We’re looking at a 20% increase in retail, which has been a great testament to the hard work of our people.”
In the lead up to tariffs, many retailers encouraged prospective buyers to purchase now lest they face higher prices later. That “pull-through” of sales seems to have worked in some cases, including, for example, at The Vertical Connection. “We had a very strong March and April prior to a decline in May,” Joss said, citing the possible tariff effect. “We’re finishing up about 10%, though it hasn’t been without its bumps. We saw a decline in May that wiped out additional first-half gains. It’s too soon to say if price increases currently hitting are having an impact. In the Washington D.C., market, we’re watching to see the impact of government cuts in headcount and spending. There is so much uncertainty with various issues that it’s been a challenge to get a feel for what’s really impacting business day to day. We’re optimistic that these external factors will quiet down and consumer confidence grows.”
Not every flooring retailer is seeing double-digit gains this half. For some, it’s been a mixed bag and very unpredictable. “We have had a few very good months and a few not-so-great months,” said Tom Connell, owner of M&M Carpet Showroom, Houston. “Overall, we have a lot in the pipeline, which should translate to higher numbers as the year progresses. The only surprise we have seen is the increased amount of communication we have received from suppliers regarding price increases. There has been a lot of back and forth because of the uncertainty. Some have said they would hold the line until absolutely necessary, whereas others have jumped on it to get ahead of it. That has created some confusion with our salespeople.”
Dealers like Mark Strauch, owner of Floor Craft LLC, Colorado Springs, Colo., said he was hoping to see more significant growth in business at this point of the year. “We’re still running at the same pace since the slowdown in 2023,” he noted. “Our builders are not seeing the growth they were hoping for this year. On a positive note, retail sales have increased over the last couple of months and have stayed stronger than at the beginning of the year.”
Meanwhile, at Bob & Pete’s Floors in Canton, Ohio, sales are up 5% over last year and profitability is 10% higher. But despite those healthy gains, Bob Pireu, co-owner, said it doesn’t feel so good. “While our numbers are up, I feel like we are down,” he explained. “We are quoting more than we are closing. [Business] has gone in weird spurts where I feel consumer confidence is in question and consumers are looking but waiting to buy. We have really focused on qualifying and trying to sell at a higher margin and do what we need to do to close the job.”
For Carpetland USA (The Langan Group), with nine locations across Iowa and Illinois, business has been flat through May. “Traffic and business have been choppy—similar to that of the stock market and tariff negotiations—but overall, we’re in a good spot thus far,” said Eric Langan, owner. “I believe the choppiness will continue throughout the year. There is business out there, but it needs to be earned.”
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