Top 100 Retail: Despite challenges from every corner, residential dealers still find ways of navigating the underperforming market – Nov 2025

By Darius Helm

Coming into a year in which retailers widely expected homeowners to turn their attention back to remodeling and home buying, the economic, political and social upheaval unleashed across the nation quickly put a damper on those high expectations. Sustained inflation and tariff threats, along with various other destabilizing developments, have hobbled investment in new construction, home buying and renovation.

In last year’s report, Floor Focus noted that, assuming current trends like cooling inflation and lowering interest rates continue, the expectation was that the year would start slowly and gather steam in the second half with gains in builder and residential remodeling, followed by strengthening multifamily turns. Most of those hopes have now been deferred to late 2026 and beyond.

If there’s one thing the market has going for it, it’s pent-up demand. When spending is deferred, as we’ve seen before, the eventual release of pent-up demand may not add up to the sales lost during the slowdown, but it is ultimately an unstoppable force. This time around, the cycles are more attenuated because of the wave of remodeling and home buying during the pandemic, driven by low interest rates, the widespread shift to working from home and the use of stimulus checks. To some extent, the pandemic spending surge synchronized remodeling and home-buying cycles that are typically more evenly spread out, creating a more prominent, albeit transient, trough.

“Retailers got all their growth from 2020 to 2022,” says Nick Bock, CEO of 31st Street Capital, adding that the slowdown over the last three years is in large part because of the customers who spent money during that period that otherwise would have waited.

MARKET UPDATE

The mid-September quarter-point reduction in the Fed’s benchmark rate has been heralded by many as the first step toward driving growth in the domestic economy. Two more cuts of 25 basis points are expected this year, though there is no guarantee. One may have already come by the time this story is published, and the next was anticipated follow the Fed’s December 10 meeting. It will take more cuts before mortgage rates start to follow the benchmark, but as we learned in September, any significant drop in mortgage rates can spur a wave of refinancing. When the rates dropped below 6.5% in anticipation of the Fed’s announcement, the market reacted with a nearly 30% increase in mortgage application volume from August and from September 2024, according to the Mortgage Bankers Association Market Composite Index.

Dipping mortgage rates will drive some market activity, but a whole slew of homeowners and homebuyers, counting on a trend, will be waiting for them to drop lower. After all, rates are still more than double what they were during the pandemic. Many, including COO Greg Loeffler from Montana’s Pierce Flooring & Design, question whether we’ll ever get back to those 3% 30-year rates.

“Mortgage rates are not a magic wand,” says Adam Brookner, CEO at Real Floors, whose business is focused on the multifamily business, noting that inflation is the big deal-and escalating prices due to tariffs also loom large.

Also impacting the fortunes of retailers are operating costs. Most interviewees report that utilities have soared, as have healthcare expenses-also, pay increases are impacting profitability.

While the wealthy have always done better than the lower and middle classes, until recently there was at least the impression that we were all in it together. When the economy was hit, everyone felt the pain, and when times were good, it was good for most people-the rising tide lifted all boats. But in recent years, the sense of economic camaraderie has ebbed. As the bulk of Americans have felt the impact of inflation everywhere from their grocery tabs to their health insurance to their utilities, the fortunes of the wealthy have soared. This schism is reflected in the state of the residential flooring market. Despite the constraints of rising costs and high interest rates, retailers this year report that the high end of the market is robust.

However, it bears noting that the high end of the market, while driving sales, isn’t running at the same pace as the last few years. According to a Wall Street Journal report last month, luxury home sales dropped in August, and price growth has also slowed. According to real estate brokerage firm Redfin, following the tariff shock of early April, “buyers and sellers across the spectrum saw dramatic swings in household wealth that took a toll on spring and summer purchasing.”

Overall, remodeling has been the stronger channel for residential flooring sales, ahead of builder and multifamily. Estimates by Santo Torcivia at Market Insights detail a drop below one million units for new single-family homes, with marginal gains for multifamily new construction, while remodeling is showing modest gains (up 1.1%). September’s existing-home sales were up 1.5% over August and 4.1% over September 2024 at a seasonally adjusted rate of 4.06 million homes, and both existing home prices and unsold inventory showed increases.

In the single-family builder market, dealers report that some of the bigger builders are buying down interest rates to help drive sales. While it’s a good short-term strategy, Carpets N More CEO Steve Chesin points out that it depresses margins and can’t go on indefinitely.

According to Torcivia, some homeowners have started leveraging the equity in their homes, which has soared in recent years. He says, “If they go buy another home-and this is what’s boosting some of whatever housing growth we have-they’re using that equity, if they’re downsizing, to either lower the amount of their mortgage…or they’ll just go in pay cash for that new house.”

In the multifamily market, a key issue is how long it will take to move through the new supply of units on the market. Right now, the trend among renters is to stay put. Property managers don’t want them moving, and they’re offering financial incentives, including modifying rental agreements, to keep them in place, since apartment turns cost money. In fact, Brookner reports that he’s seeing a 7% to 11% reduction in spending per account.

Multifamily specialists, including Real Floors and ProFloors, report that they’re doing more patches and repairs than they’re used to, which is less profitable than turns, already a high-volume, low-margin business.

In terms of when the residential market will return to health, while some dealers expect pent-up demand to be released next year, many feel that 2026 will be another grind, with the real recovery coming in 2027. Lower interest rates will gradually clear the path for investment in new construction, and as mortgage rates inch down, homeowners will start to spend, but so far there’s little sign of inflation measurably easing. So, the caution flag remains up.

PRODUCT NEWS

Just about every retailer reports that hardwood is the hot item, corroborating what dealers reported in the July retailer survey, where it was easily the fastest-growing product category.
According to Carpet Exchange president and CEO Bruce Odette. The surge in demand for hardwood is driven by
consumers looking for products that are sustainable and enhance their homes’ value. Also, hardwood is stronger at the higher end, where much of the activity is.

Retailers also report that the weakening of lower-end SPC due to product failures over the last couple of years is still shifting buyers toward better goods, like WPC, improved laminates, beefier SPC and even flex LVT. And that category shift toward better goods has helped buoy revenues to some extent.

Also showing strength for most dealers is carpet. The majority of dealers consider that carpet’s years of share loss in the residential market are behind them, though it’s worth noting that it’s higher-end carpet that’s driving a lot of growth in the category, including decorative goods and, for some, bound broadloom rugs. Also, carpet selection at middle and lower price points is in response to a push for lower ticket sizes from consumers. So, we won’t know for sure whether carpet has stabilized until the lower end regains some strength.

INDEPENDENT DEALER HIGHLIGHTS

Real Floors, #9 on the top 100 list, is a multifamily specialist with about 80% of its multifamily business on the apartment turns side and the balance in new construction. It also does 10% of its business in the single-family builder market, and about 5% of its revenues come from non-multifamily contract commercial, including large venues like arenas and data centers.

Despite the underperformance of the multifamily market, Real Floors’ total residential sales are anticipated to grow by 1% to 2% this year to an estimated $494 million. However, part of how Real Floors is posting growth this year is from gains in new markets-most notably from its Arbor Carpet acquisition in 2022 that added several locations and helped expand the firm beyond its focus in the Southeast-which is helping to offset declines in its more mature markets. Real Floors works out of 31 locations, which includes two that were added over the last year, across 12 states-most of the Southeast, along with Nevada, California, Colorado, Texas, Arizona and New Mexico.

CEO Adam Brookner reports that the market is still under pressure and notes that record-setting renewal rates are reducing spends per account as much as 7% to 11%, and there’s not a lot of activity with capital projects. In terms of when the multifamily market will regain some momentum, Brookner says, “The optimist in me says maybe the third quarter of 2026.”

America’s Floor Source, #21, which has nine brick-and-mortar locations in Illinois, Kentucky, Tennessee, Indiana and Ohio, as well as its FlooringMarket e-commerce site, does about 45% of its business in the builder market, another 35% in residential remodel, 14% in multifamily (both new construction and turns), 2% in mainstreet and 4% in contract commercial. The firm’s CEO, Michel Vermette, is a long-time flooring veteran on the manufacturing side, including nearly 18 years with Mohawk, nine of which he served as president of Mohawk Group.

This year, total residential sales inched up to an estimated $215 million. Through the course of the year, the strongest segment has been residential remodel, up 7%, in part due to the firm’s focus this year (including updating displays and products) and driven by the higher end. Single-family builder started well but gradually slowed, and multifamily new construction was healthy in the first quarter, slowed in the second and is now starting to come back, thanks to contracts the firm already secured. Turns work was down over the first six months and is now also moving into positive territory, which Vermette attributes to gaining share in various markets.

In terms of flooring categories, the biggest gains have been in laminates, followed by ceramic and then carpet. AFS also produces bound broadloom rugs and runners, with tables for binding at four of its locations. And it’s testing out synthetic turf.

The retailer completed its rebranding from America’s Floor Source to AFS in all locations, upgraded its website and networks and put in place a new warehouse management system, and going forward it will continue upgrading its stores. It’s also close to announcing another acquisition.

Nebraska Furniture Mart (NFM), #22 on the list, a leading member of the National Floorcovering Alliance (NFA), is the largest home furnishings store in the U.S., selling flooring, furniture, appliances and electronics. Owned by Berkshire Hathaway, The retailer has three huge stores-Omaha, Nebraska; Kansas City, Kansas; The Colony (Dallas), Texas- whose scale is best conveyed by how many Home Depots can fit inside of them (at least six in the case of the NFM and adjacent Home Depot in Texas)-and a smaller but still substantial location in Des Moines, Iowa that is more focused on flooring and some electronics. And coming in the spring of 2027 is a new store in Austin, Texas, also a massive location with about half a million square feet of showroom.

Business has been fairly healthy at NFM this year, thanks in part to its focus on middle and higher price points. Kansas City has been strongest, followed by Omaha and Des Moines, while the Dallas market has been more challenging. Flooring revenues this year are anticipated to be down a hair to an estimated $178 million, assuming a soft fourth quarter.

NFM’s Carpet business has been strong, particularly higher-end patterned goods. Area rugs sales have also been healthy. And while LVT continues to perform well, there are signs that it is close to plateauing, with gains this year in hardwood and laminates, though from a smaller base. And ticket prices in general are up.

Flooring sales for the first half of the year were soft, while the third quarter started to show some nice gains, though in spurts, and the retailer is planning for a growth year in 2026. Earlier this year, NFM completed an update of its Kansas City showroom, including giving more space to carpet and adding a Shaw Anso gallery like it did in Omaha a few years ago.

Atlanta Flooring Design Centers (AFDC), #23, an employee-owned company headquartered just north of Atlanta in Suwanee, Georgia, does nearly three quarters of its business in the single-family builder market, along with contract commercial work and some residential remodel. The firm is on track to end this year about flat at $178 million. Builder
business is off about 5% to 7% with existing customers, but AFDC also picked up some new customers, which has helped buffer the firm in this sluggish market. The most important gains have been in the South Carolina market. And hopes are high for gains next year.

According to Donny Phillips, who founded the firm 40 years ago, AFDC made two acquisitions this year, first a smaller store in middle Georgia that adds about $2 million to its sales, and then in July, it acquired Alpharetta, Georgia-based Signature Floors & Design, a custom home flooring specialist that should bring in about $10 million in additional sales in 2026. The company now has 15 locations in six states.

One of the leaders in the multifamily market is Memphis, Tennessee-headquartered Artisent Floors, #25, a family-owned operation covering 17 markets going from Florida all the way to the upper Midwest. The firm has traditionally been heavily focused on multifamily replacement-last year, 95% of the firm’s revenues, which were estimated at about $123 million, came from the multifamily market.

Last month, Artisent announced its acquisition of Atlanta, Georgia’s Elite Flooring, which does about 50% of its business in the single-family builder market, another 30% in multifamily and 20% in new construction, including multifamily. Elite has locations across Georgia, South Carolina, North Carolina, Tennessee and Florida, bringing Artisent’s total to 22. Anticipated 2025 sales, including a partial year of Elite, should end up around $150 million. And next year, with a full year of Elite under its belt, Artisent’s total revenues may reach the $300 million mark.

For the time being, Elite will continue business under the Elite brand, but the plan is ultimately to go to market as Artisent.

The leading independent retailer in the Colorado region, Carpet Exchange, #26, operates out of 19 locations, including 16 Carpet Exchange stores in Colorado and one in Cheyenne, Wyoming, as well as a Colorado Flooring retail store and The Flooring Group, located in Denver, which goes to the trade. About 96% of its total revenues come from flooring. The retailer also offers countertops and cabinets, with its cabinet program available exclusively to the trade. With about two thirds of its revenues coming from the middle and higher end of the market, the firm has performed ahead of the overall market this year, with sales inching up to an estimated $144 million.

Carpet Exchange, which is independent and not affiliated with any of the buying groups, does most of its business in the residential remodel market, which has performed well for the retailer. Builder business has been recovering more slowly, but there are signs of renewed activity.

“We maintain a strong online presence,” says Carpet Exchange’s Odette, noting that success requires a strategic blend of website marketing and diverse advertising channels. “Recently, we have expanded our efforts by partnering with influencers in the design trade to further strengthen our brand.” The first Instagram Reels by influencer partners are launching this quarter.

Odette adds that he’s seen a strong surge in hardwood flooring demand, and the firm has now made it a key focus in its advertising programs across all media channels. Its leading manufacturing partners continue to be Shaw and Mohawk, led by their better-goods brands, like Shaw’s Coretec, Pet Perfect and Anderson Tuftex and Mohawk’s Karastan and SmartStrand.

Houston, Texas-headquartered 31st Street Capital, #34, operates more than 50 locations across six states-Texas, Arizona, Minnesota, Kentucky, Indiana and Illinois-mostly focused on the residential remodel market (70%) with the balance in builder and multifamily. This year, revenues will end about flat at $100 million, with remodel underperforming but builder and multifamily posting modest gains.

The firm has six brands: Floor Source in Phoenix, Arizona; Flooring Expo in the Minneapolis/St. Paul metro market; Flooring Expo by Carpet King just outside of Chicago; Floors for Living in the Houston, Texas metro market; Kentucky’s Premier Flooring, centered on the greater Louisville area; and Sam Kinnaird’s, also in Louisville but in southern Indiana, as well. Among the stronger markets is Houston, Texas, while Minneapolis and some other Midwest metro markets are under more pressure.

According to CEO and co-founder Nick Bock, while the year started with optimism around the economy despite the turmoil, the market has underperformed. “We’ve had an unbelievable run of chaos and uncertainty,” he notes. Looking ahead, he assesses that there may be some gains due to better interest rates, but labor could be an issue when the market strengthens.

Touch of Color (TOC), #38, headquartered in Harrisburg, Pennsylvania, serves the Pennsylvania and Virginia markets, with about half its business coming from single-family builder and about 20% from multifamily. Another 10% comes from residential remodel. In addition to its corporate HQ and design group, the firm has operations in Pittsburgh and Philadelphia, another in Richmond, Virginia and a retail store in Harrisburg.

While TOC’s business is flat with most of its homebuilders, it’s up 38% with its largest builder partner, a firm that serves the middle to higher end of the market and also offers financing. Meanwhile, multifamily business-TOC does both apartment turns and new construction-is off this year. The firm reports that it’s still making some good margins on the builder side, but replacement work in units is in relatively poor shape, with a high proportion of renters staying put. Without new multifamily customers, sales declines in that market would have been much more severe. As is, sales have inched up this year to an estimated $93 million, not including non-multifamily commercial work.

Airbase Carpet & Tile Mart, #41, which operates out of 14 locations in Pennsylvania, Delaware and New Jersey, is a family owned and operated retailer founded in 1967 by Sam Longwill, with grandson Michael Longwill currently serving as president. The retailer, which is an NFA member, reports that the year has been characterized by less traffic but bigger tickets, and business has strengthened during the fall selling season, with better goods leading the way. For the year, revenues will likely be down about 2% to an estimated $79 million.

As is the case with most retailers, operating costs are presenting another barrier to profitability, including everything from health insurance to utilities. The firm currently does not face any issues finding installers, but that could change when business picks up, which the firm anticipates will occur in 2026. “I’m optimistic for next year,” says president Michael Longwill, citing pent-up demand, lowering interest rates and, hopefully, more consumer confidence. “Combine that with our operational, merchandising and skill development of our team the past few years during the downturn, and we should explode with the tide changing.”

At the beginning of this year, Maryland-based Flooring Partners acquired Ohio’s The Flooring Edge, comprising Barrington Carpet & Flooring Design, Carpet Country & Design Center and Young’s Floor Covering. Then, in August, SCI Floor Covering out of Romulus, Michigan acquired Flooring Partners. SCI, now #42 on the top 100 list, is owned by Rainier Partners, a Seattle, Washington-based private equity firm.

The new firm’s expanded reach covers a lot of the Midwest and Southeast, with a dozen operations in Illinois, Missouri, Kansas, Michigan, Indiana, Ohio, Pennsylvania, New Jersey and Maryland. “We’re really excited about access to the Baltimore port,” said Dave Elberson, CEO with SCI Floor Covering in a recent FloorDaily podcast, noting that it’s hard to import into the Great Lakes region.

About two thirds of the firm’s revenues come from the multifamily market, and most of the rest is single-family builder business. 2025 revenues are estimated to be $78 million, including partial year reenues from its acquisition.

Another prominent retailer on the list, R.C. Willey, #46 on the top 100 list, has ten locations in Utah, Nevada, California and Idaho, selling flooring, furniture, appliances and electronics. The retailer, which is an NFA member, is also owned by Berkshire Hathaway. Going into 2025, residential remodel accounted for about 90% of the firm’s flooring sales, with another 10% in the custom single-family builder market.

While builder business has been stagnant this year, gains in remodel, focused on the middle to higher end, has helped drive sales-with revenues from its annual private sale in September up 10% over last year. Anticipated gains of about 4% this year should yield flooring revenues of about $72 million.

The firm reports solid business in Utah and Idaho this year, while California has been a tough market. And in terms of Nevada, business in Las Vegas has been soft, largely due to a drop in tourism, while Reno business has been fairly healthy.

R.C. Willey is currently upgrading its website, which is largely designed as an inspiration portal to drive traffic to its stores, though it also does leads online, which can be followed up by an associate coming out to measure the spaces. Now,
however, the retailer is working with Roomvo and transitioning to showcase its products through the room visualizer’s substantial catalog system.

In terms of product sales, laminate and wood is up, as is WPC, while SPC business is down. Carpet is also having a fairly healthy year, with better-end goods selling well, while rug business is off by mid-single digits.

Carpets N More, #49, serves the greater Las Vegas metro market through four locations. About two thirds of its revenues come from the single-family builder market. Multifamily makes up another 15%, with 7% in retail and the rest in contract commercial. Residential flooring sales were up last year, according to the firm, to about $65 million.

Builder business has been about flat this year for Carpets N More, which has a very strong position in the Las Vegas single-family market. According to CEO Steve Chesin, it has a hand in half the new homes being built in the city.

The firm has fared better in residential remodel, thanks in large part to a new high-end store it opened in Boca Park at the beginning of the year. Chesin expects that next year will be more challenging with a likely double-digit drop in builder business and impacts from the tourism slowdown, and multifamily will likely be flat or maybe up a hair.

Chesin reports that carpet business is down, as is ceramic, though to a lesser degree, while LVT continues to drive sales in the middle to lower end of the market. Beyond flooring, Carpets N More sells cabinets and window treatments-they’re smaller tickets, but it helps the firm get a foot in the door for flooring sales.

“Business is actually very good,” says Ian Newton, general manager of Flooring 101, #60, a seven-store, family-owned retailer in Southern California. “Although traffic count is down in the stores, we’re still seeing good sales numbers. We’re seeing larger ticket items, better goods, more expensive goods. That tells me that the consumers that are coming through the door have more spendable income or are probably higher-end customers.”

The retailer’s revenues will be up about 11% for the year to an estimated $51 million. Newton notes that “it’s a bit more of an aggressive market out there,” adding that consumers are shopping harder than they were two or three years ago.

To stay visible, the company has boosted its outreach. “We’re doing more advertising now than we have done in the last four years,” Newton notes. “That’s very much part of the key. Thank God that we’re well funded and have the opportunity to do that.”

Montana’s Pierce Flooring & Design, an NFA member and #98 on the list, serves the retail, builder, multifamily, mainstreet and commercial contract markets in Montana through seven locations. “With only a million people in Montana, we have to be all things to all people,” says COO Greg Loeffler. He cites an above-average year in contract business, adding that builder and multifamily “are maintaining very well” in Montana but not growing like they were, in part due to a slowdown in the influx of new residents, which has been driving gains in Montana for several years.

The higher end has been sustaining business this year. An uptick in middle to higher end custom homes has somewhat offset the decline in spec home and production builder business. Total revenues are expected to inch up to $37 million this year, and Floor Focus estimates that residential business will end up about flat at $28 million.

Loeffler contends that the Montana market has stabilized, and daily sales are increasing, and he anticipates a strengthening in remodel business next year as the real estate market gets moving again, while commercial business seems poised to slow.

Carpet business has been steady at Pierce, with soft surface flooring making up anywhere from 30% to 65% of store sales. WPC is gaining over SPC, and laminates and gluedown LVT are trying to make a comeback.

ProFloors, which was just off the list this year but will likely be back next year, is celebrating its first quarter century of business this year. The Atlanta, Georgia-headquartered firm, founded in 2000 by industry veteran Rob Walker, does about 60% of its business in multifamily new construction, and another 25% comes from apartment turns and renovations. Builder business makes up another 10%, and the rest is contract commercial. This year, total residential flooring sales, including new construction, will likely end up down by low single digits to an estimated $25 million.

On the high-volume, narrow-margin turns side of the business, Walker notes that landlords are incentivizing renters to hold onto them, reducing turnover, and he’s also seeing an increase in patch and repair work instead of replacement. However, the picture is better in new construction. The firm, which is a member of FEI Group’s MultiFamily Solutions, had a strong Q2 in booking deals, which should help the firm navigate through the next couple of years.

Walker expects a slow grind over the next couple of years as new inventory starts to fill up before rents start to rise and developers start to build new properties.

BUYING GROUP UPDATE

CCA Global Partners’ retail divisions closed fiscal 2025 ahead of expectations, marking another year of solid performance despite uneven market conditions. “We’re reaching our year-end better than originally anticipated,” says Keith Spano, president of the group’s retail division and Carpet One Floor & Home. “Our retail business was up, driven by better-end flooring products and our kitchen-and-bath segment, which remains in steady demand regardless of the economy.”

While residential remodel fueled growth, the builder and commercial segments softened, reflecting broader trends in builder sentiment and the Architecture Billings Index. Still, Spano describes the year as one of disciplined execution: “We’ve maintained our offensive position of ‘foot on the gas.’ Our members who follow the playbook are more diversified, better financed, and more operationally sound than most independent retailers.”

Looking ahead, Spano expects modest but steady growth in 2026 as recent investments begin to yield results. Those investments include Retail 2.0, launched in 2024 to help members modernize showrooms and diversify into kitchen and bath; and the expansion of CCA University, a new eight-week, data-driven sales training program that focuses on helping retail sales associates handle objections and close more sales.

Member succession planning has also become a major initiative. “Over 11,000 people in the U.S. turn 65 every day,” Spano notes. “We spend significant time helping members who want to sell match up with others looking to expand-simplifying the transition, saving brokerage fees, and continuing the legacy of the brand.”

Throughout 2025, CCA-which is the largest buying group and includes Carpet One Floor & Home, International Design Guild, Flooring America, Flooring Canada and ProSource-emphasized peer connection and best-practice sharing through its advisory council meetings, regional networking groups, Nex40 young-leaders program, and a series of regional and virtual events in the U.S. and Canada.

The year will culminate with the Winter ConneXtion, set for January 2026 in Denver, Colorado, where members will be introduced to new initiatives, digital-marketing tools and peer-networking opportunities.

FEI Group has grown significantly since the days when it was just composed of Home Solutions and MultiFamily Solutions under its original Floor Expo name. A decade ago, the firm entered the kitchen and bath industry with KBX and K&B Alliance, followed by Exterior Contractor Alliance, a roofing group, in 2018. In 2022, the group was purchased from its former parent, CCA Global Partners, by Nationwide Marketing Group, and following the acquisition FEI added a sixth group, Traffic Safety Solutions.

All told, FEI has 500 member companies, including 59 in MultiFamily Solutions and 71 in Home Solutions. Membership has grown for the last three years, adding 50 to 60 new members every year. Fastest growing is the roofing group, and the largest group is Home Solutions. While FEI is likely to add more groups to its portfolio down the line, for now its focus is on growing Traffic Safety Solutions, which is focused on traffic control services and pavement markings.

This year, FEI’s multifamily dealers somewhat outperformed those in the single-family builder market, despite being held back by sluggish apartment turns business. On average, multifamily is up by single digits. On the single-family side, which is flat to down this year, dealers are focusing more on base-grade materials to claw back affordability.

Enthusiasm among members remains high. At FEI’s national conference in September in San Diego, California, 700 individuals from member companies attended, up from 2024. The event included a mini trade show, featuring a score of flooring and flooring-related firms, including Shaw, AHF Products, Southwind, Roomvo, Mannington, Engineered Floors, Dal-Tile, Tarkett, MSI, Cali, Happy Feet, Karndean, TEC, Schönox and Bjork, to name just a few.

Keynote speaker Dave Berke, a retired Marine, fighter pilot and TOPGUN instructor, went through several scenarios to highlight the importance of leadership and decision-making, themes echoed throughout the three-day conference. Another top issue at the conference was about working with younger generations, both in terms of bringing them into the fold and understanding their needs and priorities as clients. In the general session, Zonda chief economist Ali Wolf discussed the state of the housing market-not great-and the state of residential remodeling-somewhat better-and took questions from members.

Members also took time out of their schedules for FEI’s Give Back program, which this time around involved assembly line-style packing 10,000 No Child Hungry meals, 800 Stop Hunger bags and 800 hygiene kits for those in need in the San Diego area.

On the second night after all the sessions, FEI Group held a dinner party on the USS Midway, within walking distance of the San Diego Marriott Marquis Marina, where the conference was held.

FEI’s biggest member, Artisan Design Group (ADG), was acquired by Lowe’s in June. While ADG remains a member of FEI at least through the end of its contract next year-at which point FEI will work with ADG and other members to decide on a path forward-at FEI’s national conference in September it did not participate in breakout sessions where strategy is discussed.

While much of the residential replacement business has slowed, National Floorcovering Alliance (NFA) president Ian Newton says members are still performing well by staying sharp and investing in marketing.

Newton says the group’s 40 members-each among the nation’s top retailers-are showing steady performance. “It’s a mixed bag,” he explains. “Some are up, some are down, depending on their market areas. But I think for the most part the membership is doing good.” The group expects Thornton’s Flooring to join by year’s end.

Unique among buying groups, the NFA only has one full-time employee, with most of the decisions made by a volunteer group of board members and committee leaders who also have key roles within the member businesses.

The NFA meets twice a year-in the spring and the fall-and also during Surfaces at the end of January. Next year, the spring meeting will take place in Lake Tahoe, and the fall meeting will be in St. Maarten. At this year’s fall meeting in Anchorage, Alaska, members enjoyed three days of activities. Tile supplier Happy Floors was promoted from specialty vendor status. “They’ve moved up to become a core vendor for the group. I’m excited to have them here,” Newton says.

Following a solid year in 2024, 2025 began with lingering caution from the election and tariff uncertainty, Floors & More and its members, which include the Big Bob’s Flooring Outlet and Floor to Ceiling brands, are ending the year on a high note, says group vice president Vinnie Virga Jr. “Once people realized prices weren’t going to skyrocket, they came back to the table,” he explains. Floors & More members are outperforming the broader flooring market, which he estimates is down about 10%. “Across our group, we’re seeing anything from down 5% to up 10%, depending on the member,” he adds.

The group’s message to members this year has been simple: stay the course. “When times are tough, the first thing business owners tend to cut is marketing-it really should be the last,” says Virga. “If you’re doing the right marketing strategies, if you’re investing in SEO, if you’re following up with clients, eventually you’re going to get results.”

Floors & More continues to lean into its digital leadership through its partnership with Neuralami, the AI-driven marketing platform led by former executives from web.com. As search behavior evolves, the group is researching how to adapt members’ websites for AI-generated summaries and local discovery.

Looking to 2026, the group will host its annual convention, Legacy, in the first quarter-“Our family reunion,” Virga calls it-focused on the enduring heritage of both the organization and its members. Updated private-brand displays and continued R&D into AI search optimization are also in the works. Virga says membership has grown by roughly 20% over the past year to 104 locations nationwide, with a goal of 200 by 2030.

Print the Article