Hardwood Floors October/November 2024

Industry Outlook 2025 RETAILERS Wood flooring sales remained flat for the majority of NWFA retailers in 2023. Halfway through 2024, about a third of NWFA retailers in the survey expect an increase in revenues for wood flooring for the year. For those who expect sales to drop, the reasons included an uncertain economy and softened consumer trends. Looking ahead, more than two-thirds of retailers in the survey said they are optimistic for growth in 2025.

One retailer said: “Consumer trends are soft, and this may continue through a good portion of next year. There’s a lot of unknown ahead with the economy and housing market.” Retailers in the survey reported the product that experienced the most dramatic increase in demand in 2024 was factory-finished engineered, followed by parquet, herringbone, chevron patterns, and factory-finished solid. The product type that has experienced the most significant decrease in demand was antique reclaimed wood. More than half of NWFA retailers who responded to the survey said their wood flooring sales grew more slowly than non-wood flooring products. And the majority expect the percentage of sales attributed to accessories (maintenance, upgrades, sundries, etc.) to stay the same. The same applies to sales attributed to services (install, refinishing, design, training, etc.). Going into the second half of 2024 and the first half of 2025, retailers see their top opportunities in product diversification and improvements to operations. Other opportunities heading into 2024 include finding new talent and value-added services. Richard Veilleux, vice president at Floor Systems, said having a more standardized grading system for prefinished hardwood would increase consistency across the board and help customers communicate their wants and needs. “People come in with an idea of what they want but can’t explain it because there’s no consistency from brand to brand.” The political climate is a top concern for most NWFA retailers, followed by the economy and competition from non-wood and wood look floor coverings. “This is an exciting time in the wood industry,” said Steven Skutelsky, managing partner at PID Floors. “If you’re not waking up and falling asleep thinking about wood floors, you will get left behind. When things are calm, you don’t need to be a wood expert to make a sale. I think it will filter out the folks not passionate about wood floors. I think we are in a good place. We just need to keep our heads up.”

RETAILERS

What are your top opportunities for 2024? 1. Improvements to operations 2. Product diversification 3. New talent What are you most worried about in 2024? 1. Political climate 2. Economy 3. Competition from non-wood and wood-look floor coverings What are the top features customers shop for when looking for flooring?

1. Attractiveness 2. Durability 3. Ease of maintenance 4. Price

WHAT DO CUSTOMERS WANT?

According to NWFA retailers, the top features customers shop for when looking for a new floor are attractiveness, durability, ease of maintenance, and price. Some retailers say their customers are taking the time to plan out flooring choices and want manufacturer samples.

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