The agita that flooring dealers felt for a good portion of 2024 has been replaced with a sense of relief—and positivity—that two interest-rate cuts and the conclusion of a presidential election will yield positive results.
Several dealers told FCNews that retail traffic has picked up since the election, a positive sign after months of rather lackluster activity. “We’re excited to say that our traffic counts have gone up exponentially [since the election],” said Sam O’Krent, owner of O’Krent Floors, San Antonio. “We’ve even had customers say, ‘Now that the election is over, we’re feeling good and ready to buy our floors.’ This is a nice change of pace from the weeks prior to the election where it felt like customers were hesitant to make a move.”
A very similar sentiment was felt at Ted’s Floors & Beyond in Anniston, Ala. After surveying his sales professionals at his two stores, president/owner Ted Gregerson concluded there had been a noticeable uptick in activity. “Our sales team reported more retail traffic in the last weeks than in many months,” Gregerson said. “I believe this latest cut in interest rates will continue to spur consumer traffic as it has created a feeling that the economy will continue to improve in the months to come.”
Other flooring dealers see the rate cuts as a lagging indicator that has yet to materialize. “Not much has changed since the recent rate cuts or the election,” said Eric Mondragon, division manager/flooring buyer for RC Willey, with 14 locations in four Western states. “Mortgage rates are still over 7% and builders in our area are not building as many homes as they did in previous years, so the new construction segment remains slow.”
Likewise, Eric Langan, president/owner of Carpetland USA (The Langan Group), with nine locations across Iowa and Illinois, said they have yet to see a significant swing in business—good or bad—on the heels of the election and rate cuts. “Our retail business has been solid over the past 45 days while our commercial business has slowed a little bit—a mixed bag for sure,” he said. “We’re hoping to be flat to up 2% by the end of the calendar year.”
Along the same lines, Casey Dillabaugh, president of Boise-Idaho-based Dillabaugh’s Flooring America, was taking something of a wait-and-see approach. “It’s too soon to tell by any data indications if the presidential election will have any effect on business,” he said. “However, consumer sentiment and positive economic indicators even a week after the election would lead us to believe it’ll be a shot in the arm across all business sectors. We’ve seen a pretty dramatic increase in new construction sales over the past three months prior to the election, so we expect that to continue.”
Fall rally buoys dealers
Several dealers reported a spike in business since fall arrived—across both business and product segments. A case in point is RC Willey, which saw business grow 15% in October, with carpet up 8% and hard surface up 24%. “Consumers who have the discretionary funds and low debt are choosing to stay in their homes and remodel with better goods,” Mondragon said.
October was the best month of the year for Boss Carpet One Floor & Home, with two locations in Illinois. “We did pull a lot out of the market early, so we will see if the rest of Q4 remains steady,” said Ben Boss, owner. “It seems slower than it really is because traffic is down, although consumers who are coming in are buyers.”
A strong end to a challenging year is motivating many flooring dealers down the stretch, with hopes for a strong 2025. As Alex Roberts, president of Houston-based Roberts Carpet & Fine Floors, noted, “We are busy, but we’ve been busy for the past couple months. We expect to end the year strong. We had a strong start and then took a dive, but by year-end we expect to be up. Traffic comes in waves, and we are hoping to ride the wave for as long as possible.”
The Vertical Connection Carpet One Floor & Home, Columbia, Md., is one retailer that has ridden the wave for a good portion of 2024. While traffic was lighter in the weeks leading to the election, it has picked up again, coupled with big purchases. “Order sizes have been larger, and our overall business has been steady,” said Adam Joss, owner. “We’re grateful for a solid year, projected to be up about 15%. We’ve invested in driving growth and will continue to do so in the year ahead.”
Double-digit gains are certainly not the norm this year, but they are not unheard of. Year-to-date Ted’s Floors & Beyond is up 12% over 2023, buoyed by its expansion into non-flooring categories. “We are definitely reaping the benefits of diversifying into cabinets [April 2023],” Gregerson said. “It has taken some time, but we are going to add approximately $600,000 in sales this year because of us doing so. Our commercial business has been huge this year as well.”
Retailers who maintain or increase their marketing spend during challenging years invariably fare better than those who cut back. And that has been the case again this year for two Alliance Flooring dealers—Bob and Pete’s Floors in Canton, Ohio, and Kevin Rose’s Carpetland USA in Illinois. “We are up about 8% over last year and see a nice push in the commercial and residential markets,” said Bob Pireu, co-owner. “We have maintained our marketing and are trying to keep a consistent message to our customers. We have been blessed to have a consistent year, but I do believe consumer confidence is up, and we will see an increase in sales as we wrap up the year. Our estimation team has been busy quoting. While our sales are good, there are a lot of pending quotes out there.”
Rose said his business is up over 2023, citing strong activity in Chicago’s commercial sector.
Interest rate cuts and presidential elections aside, Carpetland USA’s Langan is of the mind that flooring retailers need to look internally—and not at outside influences—to chart their path forward. “Those who go out and aggressively get business will succeed, while those who wait and hope things will get better will be left behind,” he said.
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