Lay it down: Higher material costs and rising competition will hinder profit growthAbstractFloor Covering Stores in the US
Sales improved for operators in the Floor Covering Stores industry over the five years to 2017. Professional contractors and homeowners typically purchase industry goods while undergoing new residential construction and home renovation projects. Therefore, the steady rise in housing starts and remodeling activity over the past five years helped increase demand for industry retailers. During the five-year period, demand conditions have improved in line with the strengthening economy. As a result of the continued strengthening economy, IBISWorld forecasts steady growth for the industry over the five years to 2022. While competition persists, growth in the housing market will boost overall demand for floor coverings, thus benefiting the industry. Moving forward, the industry will experience higher material costs, which, when combined with rising competition, will force operators to consolidate to salvage profit margins.
Establishments in this industry retail carpets, rugs, tiles and vinyl flooring. Most operators manage sales and administrative activities, such as customer service, product merchandising, advertising, inventory control and cash handling. Some operators also offer installation or repair services.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.