Retailers React: Inflation effects – Floor Covering News
Every two weeks, FCNews seeks floor dealers across the country to provide advice on current topics. This week we asked: How is your market doing?
Here are their reactions:
Business is still going well, but we’re doing a lot of new construction – jobs that’s been in the works for six months or so. Our walk-in store traffic is still good and I feel like we’re going to have a strong second and third quarters. That said, with rising interest rates and high gas prices — as well as increases in material costs and freight — something has to be given.
– Jeremy Wirges, 3 Kings Carpet, Fort Wayne, Ind.
Things have slowed down from last year and I expect that trend to continue into and through the summer months. Inflation certainly plays a negative role for consumers. Discretionary income is being devoured by basic necessities – groceries, utilities, fuel, etc. With inflation rising and the stock market falling, we will continue to slow things down for the rest of 2022.
– Eric Langan, Carpetland USA, Davenport, Iowa
Sales remain solid, although traffic has declined. We continue to see high closing rates and good order sizes. It is unclear whether the declining traffic trend will be short-lived. Significant falls in stock markets will traditionally slow sales, although higher home values may offset that in this case.
– Adam Joss, The Vertical Connection, Carpet One, Columbia, Md.
Foot traffic has slowed down considerably, although we often experience that around this time of year. We are concerned about the financial markets and inflation affecting business, at least through the medium term. In the meantime, we use this time as an opportunity to fine-tune our showroom, marketing and lead follow-up.
-John Bretzloff, Barefoot Flooring, Castle Hayne, NC
Our market is resilient and we are blessed with continued growth in all segments. Retail has fallen in the past month, but we are seeing a steady increase to within 10%-15% of where we left off before the short decline. New construction remains strong, with some builders taking extra caution on future launches or shifting specs to target a marginally more affordable home. Commercial/multi-family remains a stronghold.
– Kyal Wilson, Tampa Floors and Interiors, Tampa, Idaho