Flooring Retailers Insights 2022: Sales Trends & Consumer Preferences
The report delves into the flooring industry, highlighting key insights from 2022. It covers consumer spending trends, popular carpet brands, LVT sales statistics, and hardwood sales shares. The data reveals consumer preferences and buying behaviors, shedding light on the evolving landscape of the flooring market.
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Presentation Transcript
Struggling with the Economy According to the US Bureau of Economic Analysis, consumers spent $33.77 billion on carpets and other floor coverings during Q1 2023, a 2.6% increase from Q1 2022, an 11.3% increase from Q1 2021 and a 37.7% increase from Q1 2020. Inflation has dampened home improvement projects and, therefore, flooring purchases. The Farnsworth Group reports the percentage of surveyed homeowners who have completed a home improvement project during May is unchanged since January. Sales of new single-family homes did improve during April 2023, increasing 4.1% from March and 11.8% from April 2022, April 2023 housing starts decreased 28.1% YOY and the average late-May mortgage rate reached a seven-month high.
Flooring Retailers 2022 Profile The March May 2023 flooring retailers survey for the annual ReCo Market Intelligence Report found more than 50% of their annual sales were one million or less (31.7%) and one million to two million (27.1%). Just 7.6% of those surveyed have sales of $10 million plus. Similarly, more than 50% of surveyed retailers said 10 or fewer customers buy flooring during a typical week, or five or fewer customers (31.8%) and 6 to 10 customers (26.4%). Residential replacement was both the largest share of their 2022 flooring sales at 56.2% and the fastest portion of their 2022 business at 63.1%. Builder/New construction was second: a 24.1% share of sales and a 22.4% share of the fastest portion of sales.
Flooring Retailers 2022 Carpet Sales The ReCo report for the carpet category shows the Shaw carpet brand was 52.4% of surveyed retailers 2022 sales, followed by EF/Dream Weaver (16.4%), Mohawk (14.5%), Anderson Tuftex (3.8%), Karastan (2.7%) and Stanton Carpet (2.3%). More than half (51.0%) of retailers said consumers very often request a specific carpet brand but salespeople had more influence on purchases ( extremely at 44%) than the influence of brands ( extremely at 13.1%). Residential replacement carpet was the sales leader during 2022 at 58.3%, followed by builder/new construction at 24.8%, specified/commercial at 9.4% and main street commercial at 7.5%.
Flooring Retailers 2022 LVT (Luxury Vinyl Tile) Sales The Shaw brand of LVT flooring was also first in sales during 2022 at 66.1% of surveyed retailers; however, other brands were also strong: COREtec at 53%, Mohawk at 41.8%, Mannington Mills at 33.7%, Engineered Floors at 16.9% and Karndean at 15.7%. Of the eight attributes the ReCo report uses to rate LVT suppliers, Shaw was first in six: service, merchandising support, price, product availability, complaints/claims and training. COREtec was first in quality and consumer preference, with Shaw second in both attributes. Salespeople were extremely (39.5%) or influential (29.4%) on LVT purchases and 50.6% of retailers said they very often and 21.9% often try to switch consumers from their preferred brand to another brand.
Flooring Retailers 2022 Hardwood Sales Shaw s hardwood flooring products also represented the largest share of retailers 2022 sales in this category at 57.8%, followed by Mohawk at 39.3%, Bruce at 31.0%, Anderson Tuftex at 27.0%, COREtec at 24.6% and Mannington Mills at 22.9%. Of the three largest categories of flooring sales at the surveyed retailers, residential replacement was the largest sector in the hardwood category at 63.8%, compared to 58.3% in the carpet category and 57.8% in the LVT category. The influence of salespeople on hardwood purchases was also greater or 45% extremely. The influence of brands on hardwood purchases was the least of the three largest categories: 34.2% extremely.
Kitchen and Bathroom Flooring Trends According to the Houzz 2023 Kitchen Trends Study, modified flooring was the last major change during a kitchen renovation at 4% of surveyed consumers. In the Houzz 2022 Bathroom Trends Study, modified flooring was sixth of seven major changes at 6%. Wood was surveyed consumers top choice for kitchen flooring, followed by gray at 14%, brown at 9%, beige at 8% and multicolored at 6%. Eco-friendly flooring was the top sustainable choice for a kitchen renovation at 16%. Unsurprisingly, tile was the dominant choice for shower flooring in an upgraded shower during a bathroom renovation at 87% while ceramic or porcelain was first at 60% for flooring outside a shower.
Advertising Strategies With inflation and interest rates delaying many homeowners home improvement projects, flooring retailers could boost sales by offering various discounted bundles of carpet and LVT, carpet and hardwood, carpet and ceramic tile, etc. for various locations throughout a home. Media reps who excel at being local marketing/media consultants can work with flooring retailers to create campaigns (broadcast and direct mail and email) to boost the sales of minor flooring categories of which retailers sell the least. Because affluent households have disposable income for home improvement projects, flooring retailers can use selected media to target these higher-income households to market luxury vinyl tile (LVT) and other high-end flooring products.
New Media Strategies Since many customers request specific flooring brands, retailers can gather data from customers during an extended period of their requests and then use social media posts to share that data and promote how many of those brands the store carries. The ReCo report shows salespeople at flooring retailers heavily influence customers purchases. Social media posts (preferably short videos) can separately feature salespeople to emphasize their knowledge and how they help customers choose the right flooring. Flooring retailers digital advertising campaigns and messages should include more information about their eco-friendly flooring as Millennials, who are today s primary homebuyers, and Gen Zers make many of their purchases based on sustainability.
