Carpet stain: As the housing market cools down, industry revenue will decline

Over the five years to 2018, the Floor Covering Stores industry in Canada has benefited from Canada's robust housing market. Despite this growth, intense competition from large home improvement stores remains a threat to the industry. Additionally, asymmetric growth in the housing market and fears of a possible housing bubble have led to slower growth over 2016 and 2017, limiting the industry's overall expansion. Over the five years to 2018, industry revenue is projected to increase. Housing market conditions are expected to normalize over the five years to 2023, thus the robust growth that characterized part of the previous five-year period will become more difficult to maintain...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
3.6%
Forecast Growth 18-23
Profit
Employment
11,535
Businesses
1,605
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has had to combat competition from large home improvement stores
  • Floor coverings sales are highly dependent on disposable incomes and the health of the housing market.
  • The industry’s primary engine of growth, the housing market, is forecast to slow
  • Industry Report - Starting a New Business Chapter

    The Floor Covering Stores industry in Canada exhibits low barriers to entry for prospective operators because it has no licensing requirement, government regulations or resource constraints that prevent operators from entering. Furthermore, costs involved in establishing a floor covering store are relatively low because most of these retailers do not stock a significant amount of inventory. Rather, industry operators maintain a showroom and order goods from manufacturer warehouses when a sale is made. So, new operators are not required to invest a significant amount of capital in acquiring goods...purchase to read more.

    Additional Insights for the Floor Covering Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Floor Covering Stores Industry are

  • Proximity to key markets
  • Access to highly skilled workforce
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as National unemployment rate and Per capita disposable income in the Floor Covering Stores industry impact industry performance..

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    What's in this report

    What is the Floor Covering Stores Industry?

    Establishments in this industry retail carpets, rugs, tiles and vinyl flooring. Most operators handle sales and administrative activities, such as customer service, product merchandising, advertising, inventory control and cash handling. Some operators also offer installation or repair services in addition to their retailing activities.

    Industry Products
  • Carpet and rugs
  • Other hard surface floor coverings
  • Hardwood floors
  • Other products
  • Services
  • Industry Activities
  • Retailing floor coverings
  • Retailing rugs
  • Installing floor coverings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • National unemployment rate
  • Per capita disposable income
  • Housing starts
  • Residential renovation expenditure

  • Current Performance
  • Mixed performance complicates growth
  • Profitability and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Housing slows
  • Profitability and other trends
  • Table: Floor Covering Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Floor Covering Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Property Management in Canada
  • Remodelling in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Floor Covering Wholesaling in Canada
  • Wood Panelling Manufacturing in Canada

  • Products & Services
  • Carpet and rugs
  • Other hard surface floor coverings
  • Hardwood floors
  • Services
  • Other products
  • Chart: Floor Covering Stores Industry Products and Services Segmentation

  • Demand Determinants
  • Housing market and home improvement spending
  • Consumer confidence and income
  • Nonresidential construction
  • External competition from home improvement stores

  • Major Markets
  • Do-it-yourself consumers
  • Do-it-for-me consumers
  • Contractors
  • Chart: Major Market Segmentation for the Floor Covering Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities, marketing and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Floor Covering Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Floor Covering Stores Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Floor Covering Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Floor Covering Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Electronic Data Interchange
  • The transmission of electronic documents among businesses from one computer system to another.
  • Laminate Flooring
  • A synthetic style of flooring that simulates wood or stone through a lamination process.
  • Resilient Flooring
  • A manufactured interior floor-covering material, in either sheet or tile form, that is resilient; such flooring includes linoleum, sheet vinyl, vinyl composition tile, cork and others.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Floor Covering Stores market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Floor Covering Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Floor Covering Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Floor Covering Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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