It’s human nature to feel generally optimistic at the start of a new year, seeing it as a chance for fresh starts, new opportunities and personal growth. Flooring retailers are no different as they approach 2026 with a clean slate and hope that this year will be more prosperous.
Despite mortgage interest rates that remain above 6%, a fragile labor market and consumer confidence that fell for the fifth consecutive month in December, most dealers prefer to look at the bright side, citing positive signs ahead like tax breaks and potentially larger tax refunds in 2026.
“I must stay optimistic—as that is my 2026 resolution,” said Cathy Buchanan, owner of Independent Carpet One Floor & Home, Westland, Mich. “Although the state of our country is still a bit torn politically, I do see interest rates dropping slightly, and gas is dropping slightly, so
with that in mind I am confident the consumer’s mindset will be better than 2025.”
Buchanan is not alone in that thinking. Other dealers, including Penny Carnino, COO of Grigsby’s Carpet, Tile & Hardwood, Tulsa, Okla., reported a bump in business right out of the gate. “I have been pleasantly surprised at how much traffic we have already had in the store the first few days of 2026. We are looking forward to a great year.”
Pete Rubando of Giant Floor, a Carpet One retailer with four Pennsylvania locations, is projecting a strong first half. “We finished very strong in 2025 and we are seeing demand remain relatively steady,” he told FCNews. “We see consumer confidence [trending higher] as interest rates start to decline and oil/gas prices keep going down. Overall, we have a positive outlook for 2026.”
Adam Joss, owner of The Vertical Connection Carpet One, Columbia, Md., has several reasons to feel more optimistic in 2026. “Our particular market had a tough ’25 so I do expect less noise coming from D.C., which is a good thing,” Joss explained. “DOGE [Department of Government Efficiency] is done and hopefully there will be no more shutdowns. Rates should decline and confidence could get a boost from larger tax returns. I’m optimistic that we’ll see a solid spring. I’ve read that tax returns may be a welcome surprise to many. Extra discretionary dollars are always good for our business.”
Following a strong 2025, Denver-based Carpet Exchange, with 15 locations, expects to build on that momentum in 2026. “Our expectation is that we will continue to grow in 2026,” said Bruce Odette, president. “Coming off a good year, momentum is strong and we anticipate steady, consistent sales. There is a lot of pent-up demand that could eventually be released.”
Boise, Idaho-based Dillabaugh Flooring Company, which operates Flooring America, Carpet One Floor & Home and Floor Trader Outlets, has benefited from a robust housing market in Boise that only recently has taken a pause. Casey Dillabaugh, president, is hoping to get back on track. “While I would love to be able to look into a crystal ball and be supremely confident about 2026, the way that the fourth quarter went—which I can only categorize as frustrating and concerning, particularly in the residential sector—we need to see some early wins in 2026 to provide some level of optimism,” he noted. “That being said, while we cannot control the economy, competition or any other outside factors, we can ‘control our own controllables.’”
Things dealers cannot control, i.e., mortgage rates and government policy changes, continue to create an air of uncertainty for some retailers. “There are so many variables,” said Phil Koufidakis, president of Phoenix-based Baker Bros Area Rugs & Flooring, with six locations. “I am not expecting a significant bump in the short term. If the tariffs are struck down, we will end up with a ton of uncertainty—and maybe lower prices—and that will likely not help things in the short term. In the end interest rates are the key factor for the business.”
The Flooring Edge, with three Ohio locations, expects its business will see single-digit growth in 2026 despite some challenges. “I believe that the main drag on our business this year will probably be our new home flooring business,” said Craig Phillips, vice president. “Our builder’s customers, for the most part, still finance the new build with a conventional mortgage. Current rates are currently holding down prospective customers from coming in and committing to build. So, I do not see a big uptick in sales for our builders this year.”
Regardless of how things play out in the short to medium term, retailers are doing their part to put themselves in the best position to win. “We are continuing to aggressively pursue all avenues of promotion and advertising to maximize our opportunities,” Carpet Exchange’s Odette said.
