Fears of a recession have persisted since late 2022 and, to some extent, continue to this day. And yet, flooring retailers thumbed their noses at the prognosticators, defying the naysayers with a winning game plan that included selling higher-end goods/larger tickets to offset a weakened residential remodel market. The result? A more-than-respectable 2023.
Indeed, what began as a year when even the eternal optimists among flooring retailers were guarded is ending with most dealers pleased. While not record breaking in most cases, several businesses said they were able to achieve year-over-year gains.
A case in point is Tulsa, Okla.-based Grigsby’s Carpet, Tile & Hardwood, which, like many, were not wearing rose-colored glasses at the start of the year. “We were anticipating a down year,” said Penny Carnino, COO. “David [Stover, vice president at Grigsby’s] and I have been pleasantly surprised going against our biggest year [2022] that we are right there— even a little up. We are hoping to continue that through the end of the year.”
Carnino cited an infusion of sales talent “who are driven and always working to improve their sales” with contributing to the success in 2023.
While new RSAs helped Grigsby’s, other flooring retailers relied on larger transactions or diversifying their showroom to produce strong sales during a year when inflation and high interest rates subdued retail traffic. “Our biggest surprise for this year was no doubt the increase in our average invoice,” said Ted Gregerson, president/owner of Ted’s Floors & Beyond, Anniston, Ala. “Retail traffic is way down, but those who are coming in are definitely buying and spending a lot more than we typically see.”
For the year, Ted’s Floors & Beyond is up 12% over what was a record 2022, Gregerson reports. The increase is partly due to higher ticket sales. “When it comes to retail sales, a $20,000 invoice would normally be a big sale for us,” he explained. “Throughout this year, we have written countless $30,000 to $50,000 retail invoices. Our retail customers have been purchasing a lot better goods this year and doing entire kitchen and bath makeovers. We certainly were not expecting that big of a jump.”
Given all the negative economic news surrounding 2023, Castle Hayne, N.C.-based Barefoot Flooring would have gladly settled for a flat year. But things turned much better than flat, according to John Bretzloff, manager. “We have been content that we were able to hold the line and even slightly surpass our 2022 numbers,” he said. “But we’re not having a celebration, we’re just thankful for sustaining amid difficult times.”
For Don Cantor, owner of Lake Interiors Chelan, Chelan, Wash., his most pleasant surprise is knowing the consumers who have money are still spending on remodels and new custom homes in his market. “Our area is very desirable, and a lot of people are moving in from the Puget Sound area to get away from the big city environment. The higher interest rates did not influence their projects.”
Meanwhile, walk-in traffic numbers—and total sales—are down year-over-year at Hopkins Carpet One Floor & Home, Hopkins, Minn. But Casondra Brady, general manager, said she takes solace in the fact that orders have been much larger than expected. “We are completing more of the home rather than small areas and, therefore, we can make more of a total impact,” she said.
Evidence that some consumers are still willing to spend on flooring turned up at RC Willey. The Salt Lake City-based home furnishings retailer wrote more than $13 million for flooring in each of its private sales in 2023.
“Consumers are still spending money,” said Eric Mondragon, hard surface flooring buyer. “The unemployment rate is still low, so consumers are choosing where they want to spend their discretionary funds.”
