1. Carpet and Floorcovering Market Profiler 2018
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2. Floor Covering Market Looks Fresh
Floor Covering Market Looks Fresh
According to Floor Covering Weekly’s 2017 Statistical Report, US floor covering sales during 2016 totaled $24.47 billion, an increase of 4.4% from Industry revenues are expected to increase 3.5% to 4.5% per year through 2021.
Financial pressures on Millennials, including weak income gains, large student debt and restrictive mortgages during 2016 resulted in less residential revenue. Commercial business, however, boosted by strong profit gains, countered weak residential sales.
The hospitality, office and commercial markets increased at the fastest pace during 2016, but government spending was sluggish. The sales of more commercial than residential products increased the spending on hard flooring versus carpet and rugs.

3. Commercial Sales and Residential Area Rugs Drive Growth
Commercial Sales and Residential Area Rugs Drive Growth
Carpet and rugs lost market share to hard flooring during 2016, due to a 1.3% decrease in residential replacements; however, commercial sales in this segment increased 2.2%.
Carpet tile is a trend in commercial floor covering, and now accounts for 60% of commercial carpet sales.
Consumers increased their purchases of area rugs for their new hard flooring. Most area rugs are imported, and imports of carpet and rugs increased by 5.4% during 2016, mostly from China, India and Turkey.

4. Mixed Results for Hard Flooring Market
Mixed Results for Hard Flooring Market
Ceramic tile sales increased during 2016, due to new products, such as digitally printed tiles and planks and thin tiles for walls, counters and other surfaces. More bathroom remodeling projects also contributed.
Wood floor sales growth has slowed from double digits to 5.9% with declining prices and competition from ceramic tile planks and wood plastic composite products.
Technologically advanced and higher-end LVT drove vinyl and other resilient flooring sales growth, but production issues hampered growth. Laminate flooring sales declined, because Chinese imported products did not satisfy California’s air quality standards.

5. Retailers’ Bottom Line
Retailers’ Bottom Line
ReCo research of flooring sellers found that 30.0% reported annual sales of as much as $1 million; 28.1%, $1 million–$2 million; 13.0%, $2 million–$3 million; 12.5%, $3 million–$5 million; 9.2%, $5 million–$10 million; and 7.2%, more than $10 million.
Almost one in five, or 19.4%, had on average of 5 or fewer customers buying per week; 23.5% sell to 6–10 customers; 24.3%, 11–20; 14.1%, 21–30; 10.2%, 31–50; 5.5%, 51–100; 2.3%, 101–200; and 0.7%, more than 300.
More than half, or 56.9%, of study respondents said the fastest growing segments were residential replacement; 21.6%, builder/new construction; 16.9%, contract/commercial; and 4.5%, Main Street commercial.

6. Stores That Are Tops in Flooring
Stores That Are Tops in Flooring
All of the top 10 retailers listed in Floor Covering Weekly’s 2016 Top 50 Retailers report retained their positions from 2015 to Lumber Liquidators was first, but its sales decreased from $978.8 million for 2015 to $940.0 million for 2016.
The number-two retailer, Empire Home Services, increased sales 7.7%, and increased its number of stores from 3 in 2016 to 21 in Number three, Floor & Décor, increased sales 72%, from $368 million to $630 million, and added 3 new stores.
The remainder of the 2016 top-10 list were The Tile Shop, Rite Rug, Redi Carpet, ABC Carpet & Home, Great Floors, Nebraska Furniture Mart and Avalon Flooring.

7.
Trends and Technology
According to Floor Trends, 2018 trends include botanical designs, deconstructed tiles, earth tones, global designs, realistic-looking wood or stone in other materials, carpet tiles, mixed-shape wood planks and stronger color and grain woods.
During January 2018, marketing agency Mobile Marketing announced a partnership with The World Floor Covering Association to provide an e-commerce platform to its members to sell area rugs online.
With the PLNAR augmented-reality app, customers will be able to visualize different flooring options in their space on iOS devices. Flooring manufacturer Torlys has a similar technology available on its Website.

8. Advertising Strategies
Advertising Strategies
Market innovative LVT flooring as an affordable alternative for Millennial homeowners, so they are able to incorporate another design element into their homes.
Showcase new laminate flooring that is waterproof to parents of small children and pet owners.
Highlight cork and reclaimed wood as sustainable flooring choices. Offer a discount or special price to homeowners who have added another environmentally-friendly, such as energy-efficient appliances, solar panels, etc. within a qualifying time period.

9.
New Media Strategies
Tie into augmented-reality apps from manufacturers and third parties, and showcase them in-store. Consider creating how-to videos for your Website and social media to maximize the number of customers who utilize these apps.
Capture customer information and their flooring needs and send them personalized s with links to content, photos and videos of flooring that accommodates their needs.
Offer digitally printing of customers’ images on ceramic tiles as a custom product.

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