Hardwood Floors Oct/Nov 2019

RETAILERS

2020

“target custom homebuilders and architects in lieu of showroom sales to residential homeowners.” NWFA retailers estimate that services including installation, refinishing, design, repair, and training will make up a good portion of sales, with 41 percent of retailers saying services account for a quarter to half of their sales. And half of retailers said they predict this percentage to stay the same in 2020. Accessory sales made up 10 percent or less of sales for 83 percent of retailers in 2019, which is expected to remain the same for most in 2020. Going into the second half of 2019 and 2020, retailers see their top two opportunities as product diversification and improvements to operations. One retailer said they planned to offer “some value lines and new product offerings.” Christopher Keale, T&G Flooring in Denver, said he is using new apps to improve the surface segment of his business. He said: “We have project management apps we've recently rolled out on all of our crews’ phones so you can press a button and notify a customer that you're on your way. You can press another button and tell themwhen their appointment is scheduled. You can see the entire schedule for every project for the next four months.” NWFA retailers plan to remain competitive by educating customers on products and providing high- quality customer service. Many mentioned their well-trained sales staff and providing customers with value as a top strategy moving forward.

In 2018, 36 percent of NWFA retailers reported sales up somewhat (3 - 7 percent), 27 percent reported that sales were up significantly (8 percent or more), and 9 percent reported sales were about the same. Just 18 percent reported that 2018 sales were down somewhat (3 - 7 percent) and 9 percent reported sales down significantly. Looking into the remainder of 2019 and into 2020, NWFA retailers are expecting sales on wood flooring to be affected by the economic slowdown and political climate. They also are concerned about competition from online sales. Expectations for 2019 full-year revenue were up somewhat for 33 percent of retailers and down somewhat for an equal 33 percent. Sixteen percent of retailers forecasted sales for the remainder of 2019 would be about the same. For 2020, NWFA wood flooring retailers in the survey are cautiously optimistic with 8 percent forecasting sales will grow significantly, and 41 percent expecting sales to be up somewhat. One retailer said: “It depends on our local and national government. The attitude of our customers to spend is what we rely on. It’s a very tough political climate.” Many retailers cited competition from LVT andWPC as a top concern with 66 percent saying wood-look products are having a negative effect on their real-wood product sales. While some are moving more into LVT and carpet for the builder market, another retailer mentioned their strategy in late 2019 and into 2020 will be to

WOOD FLOORING PURCHASED FROM

Wood-flooring distributors

77%

General floor-covering distributors

54%

Direct from manufacturers

77%

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