Strategic Exchange: January started the year with positive momentum – March 2026

We’re hearing some positive news about the retail sales of flooring in January. One of the larger group of retailers saw a 4.5% improvement on a year-over-year basis.

Unfortunately, in late January, winter storm Fern hit a large swath of the country running from Arizona to Washington, D.C. and not only hindered the attendance at Surfaces but also distracted consumers from wanting to shop for flooring. As a result, sales of flooring in early February suffered a dip.

The outlook at Surfaces was upbeat. Is it possible that all the pessimists stayed home and shoveled snow? We’re also hearing some positive news about an uptick in carpet sales, especially with upper-end goods, in Q4 2025. By the time we do our Annual Report in May, we will have a much better read on the market.

ABBEY WINTER CONFERENCE IN FORT LAUDERDALE

The Abbey Carpet franchise buying group kicked off its winter conference at the brand-new Omni Fort Lauderdale hotel with a Super Bowl party sponsored by Engineered Floors (EF). The next morning, Will Young, senior vice president of residential sales at EF, did an excellent job of telling the roughly 400 member attendees at the general session why we are where we are in terms of tepid demand for flooring over the last three years. “The engine that drives the business is existing home sales,” Will said.

Will, Bob Shaw’s grandson, went on for a quick hour, without using notes or a teleprompter, covering the shift in carpet construction, telling the audience that HGTV and Joanna Gaines are no friends of carpet as a flooring option, and that there are more truck drivers “in the belly of the market” than there are millionaires. One of his key takeaways was that “easing rates do spur demand for flooring,” noting that existing-home sales will start to recover if and when mortgage rates go back to the 5% range.

Another point that he made was “that home centers often sell better goods because there is no one there to talk them out of it,” his point being that RSAs often are too quick to promote a less expensive alternative to fear of losing the sale.

It is worth noting that Phil Gutierrez welcomed his members at the beginning of the meeting, revealing that Abbey is in good hands despite the issues he’s had in the past with throat cancer. The group has clearly been on a roll recently, attracting nine new members and bringing in seven new suppliers. I invite you to listen to the FloorDaily podcasts I did with both leadership and members while I was at the meeting. Our Best Practices interview (on page 91) is with David’s Abbey Carpet & Floors, a successful Abbey member in Knoxville, Tennessee.

CARPET SHARE LOSS

I learned at the CCA Global meeting that carpet revenue, on a national basis, has fallen to 35% among its members. I mentioned above that some suppliers, like Shaw, saw a double-digit year-over-year increase in Q4 of last year. This is good news. I remember Julius Shaw once telling me that carpet was like pleated pants: it comes in and out of style like a swinging pendulum. That said, the carpet industry is in dire need of some entity stepping up to arrest the perception that carpet is the “diaper of the home.” What happened to Carpet…it just feels better?

There are initiatives out there now for other flooring categories-Why Tile by the Tile Council of North America, Beautifully Responsible by the Resilient Floor Covering Institute and the newest campaign, Wood Picker by the National Wood Flooring Association-that tell consumers why they should consider one type of flooring over another. There is a video clip featuring a child on the Carpet and Rug Institute’s website that attempts to extol the benefits of living on carpeted floors, but more effort needs to be focused on this message. How can an industry drop from $11 billion in annual sales to $7 billion (wholesale) and not circle the wagons?

SUPREME COURT RULING ON TRUMP TARIFFS

Right before press time, the Supreme Court ruled that President Trump exceeded his authority when imposing sweeping tariffs using a law reserved for a national emergency. The justices, divided 6-3, held that Trump’s aggressive approach to tariffs on products entering the U.S. from across the world was not permitted under the 1977 International Emergency Economic Powers Act (IEEPA).

According to Chief Justice John Roberts, who authored the ruling, “The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration and scope.” But, he added, the Trump administration “points to no statute” in which Congress has previously said that the language in IEEPA could apply to tariffs.

The decision upends his tariffs in two categories. One is country-by-country or “reciprocal” tariffs, which range from 34% for China to a 10% baseline for the rest of the world. The other is a 25% tariff Trump imposed on some goods from Canada, China and Mexico for what the administration said was their failure to curb the flow of fentanyl.

It is likely that companies that have paid the tariffs will be able to seek a refund.

For comments on this column, email kemp@floorfocus.com.

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