Our good friend and 2023 Lifetime Achievement Award winner Harold Traister often stops by our office to shoot the sh%t. (No, we do not work remotely.) Harold, with 60-plus years in this industry, has been around the block a few times and likes to share his wisdom.
Lately, he had us a little concerned with his doom-and-gloom reports of retail business in the New York metro area, where he has opened a bunch of Abbey dealers. However, his reports are the antithesis of what we hear from other dealers with whom the FCNews staff constantly engage. So what is real and what is fake news?
I took it upon myself to ask as many dealers as I could about business when attending the National Floorcovering Alliance spring meeting about two weeks ago. When you spend a few days with some of the best retailers across the country, you get a snapshot of what’s really happening out there.
The consensus among the 40 retailers was that the first quarter was solid with a slowing in April due to tariff uncertainty. Many NFA dealers were up double digits in the first quarter over 2024 numbers. And those who reported a dropoff in April at worst were flat year over year. And now, with tariffs on China being rescinded for 90 days with a favorable trade deal hopefully coming to fruition— and the Dow climbing back above 42,000—optimism abounds.
Which brings me to an article I recently read on Zeta that highlighted some key topics impacting retail right now. Retail is facing pressure from every direction between shifting tariffs, consumer sentiment plummeting in April, exploding retail media budgets and an AI race to efficiency and value. What’s clear is the playbook from even a year ago doesn’t hold. This is the time to re-center around what actually drives growth today: using your data to place the customer at the center of everything you do.
Here are five topics impacting retail today:
1. Tariffs. Global trade tensions are heating up and consumer sentiment has weighed in. U.S.–China relations add uncertainty to sourcing and pricing strategies. Retailers are scrutinizing their processes from materials to manufacturing to shipping and diversifying aggressively—with more leaning into nearshoring and localized supply chains. But margin pressure is very real. Retailers must be ready to pivot quickly with pricing strategies as tariff rules shift.
2. Retail Media Networks (RMNs). Ad budgets are shifting rapidly from social platforms to retail environments where purchase intent is stronger. Unlike traditional platforms (like Google or Facebook), RMNs are digital marketing channels owned by the retailers themselves, encompassing websites, apps and other platforms, giving them control over the advertising inventory and data they collect. Retailers provide space to sell advertising slots to other brands, like manufacturers, making them an integral part of modern commerce. To put this in perspective, think about a retailer charging Shaw, Mohawk or any other company to advertise on their site. This captures the consumer at the moment they are most likely to make a purchase, either online or in-store. And it also expands the retailer’s digital efforts from just a marketing tool to a profit center. The key: Relevance and frequency must be tightly managed or shoppers will tune out fast. While RMNs may account for 1%–5% of total revenue, they can drive 10%–20% of profit, thanks to high margins and incremental ad revenue.
3. AI. The retailers winning in 2025 are using artificial intelligence to do more than write headlines and subject lines. From real-time personalization and churn prediction to dynamic pricing, dynamic offers and optimized inventory, AI is powering decisions at every level. But there’s a wide gap between those operationalizing it and those talking transformation without traction. There is still an opportunity to be an early adopter of AI. Start by identifying specific use cases for your business and implement from there.
4. Consumer confidence. Sentiment is waning, and with this comes an era of unpredictable shoppers. As a result: luxury category buyers remain resilient; value-driven retail is under pressure; and Gen Z is shopping with intent but also saving more than any other generation. Retailers must be ready for shifts in basket size, channel preference and loyalty behavior—often in the same customer.
5. Loyalty program shifts. Traditional points-based programs are losing steam. Instead, consumers are gravitating toward loyalty that feels exclusive and rewarding: Access, meaningful rewards and recognition is the name of the game. Retail’s future is being built in real time.
The companies that will win the rest of 2025 aren’t the biggest or the loudest—they’re the ones that can read the tea leaves, be agile and make every customer moment count.
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