Worn down: Volatile consumer sentiment has constrained industry revenue growth

The Floor Coverings Retailing industry has recorded weak revenue growth over the past five years. Residential building construction activity increased over the three years through 2017-18, fuelling demand for floor coverings and supporting industry revenue growth. However, subsequent declines in residential construction activity over the latter half of the five-year period have eroded much of the earlier gains. Industry revenue is expected to grow at an annualised 0.4% over the five years through 2019-20, to $3.0 billion. This trend includes an anticipated decline of 3.3% in the current year. The revenue decrease in 2019-20 is anticipated to stem from a downturn in residential building construction, which is likely to constrain demand for industry products...read more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Fluctuations in residential building construction activity have limited industry revenue growth
  • Online retailers have allowed consumers to compare prices for industry products
  • Demand from residential building construction is forecast to increase, supporting industry demand
  • Industry Report - Industry Investment Chapter

    The industry exhibits low capital intensity. For every dollar spent on capital, $14.90 is spent on wages. Low capital intensity can be attributed to weak capital investment for daily business needs, and the industry's requirement for employees to undertake a variety of tasks. Employees are required to have a sound understanding of differences in floor covering products and be able to provide consumers with accurate advice and timely quotes.Despite the industry's reliance on labour, retailers are required to make an initial capital investment to enter the industry. The costs associated with purchasing or constructing a new store can be greatly reduced by players choosing to enter lease agreements. Other capital costs include fixtures and fittings and point-of-sale (POS) systems. Sin...purchase to read more.

    Additional Insights for the Floor Coverings Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Floor Coverings Retailing are:

  • Establishment of brand names
  • Having a clear market position
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Demand from residential building construction and Real household discretionary income in the Floor Coverings Retailing industry impact industry performance..

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    What's in this report

    What is the Floor Coverings Retailing Industry?

    Industry operators primarily sell a range of floor covering products including carpet, timber, vinyl and rugs. Tiles made of linoleum, vinyl, cork, carpet or rubber are included in the industry. However, businesses that primarily lay floor coverings or retail ceramic tiles are excluded from the industry. Businesses that primarily operate as hardware and building supplies retailers are also excluded.

    Industry Products
  • Carpets
  • Floor rugs, mats and matting
  • Vinyl, timber and other floor coverings
  • Industry Activities
  • Carpet retailing
  • Floor covering retailing
  • Floor rug retailing
  • Floor tile retailing (linoleum, vinyl, cork, carpet and rubber)
  • Parquetry retailing
  • Timber floor retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from residential building construction
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from hardware and building supplies retailing

  • Current Performance
  • Trading environment
  • Profit performance
  • Enterprises and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading landscape
  • Falling profit
  • Enterprises and employment
  • Table: Floor Coverings Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Floor Coverings Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Carpet and Textile Floor Covering Manufacturing
  • Furniture and Floor Covering Wholesaling
  • Natural Rubber Product Manufacturing
  • Timber Resawing and Dressing

  • Products & Services
  • Carpets
  • Vinyl, timber and other floor coverings
  • Floor rugs, mats and matting
  • Chart: Floor Coverings Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses and other organisations
  • People aged over 55
  • People aged 35 to 54
  • People aged 15 to 34
  • Chart: Major Market Segmentation for the Floor Coverings Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Floor Coverings Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Floor Coverings Retailing Industry

  • Industry Globalization
    Carpet Court Australia Limited, Newfurn Floor Coverings Limited, Carpet Call (Holdings) Pty Ltd, Harvey Norman Holdings Ltd,
  • Table: Carpet Court Australia Limited - financial performance
  • Table: Newfurn Floor Coverings Limited - financial performance
  • Table: Carpet Call (Holdings) Pty Ltd - financial performance
  • Table: Harvey Norman Holdings Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Floor Coverings Retailing 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 Coverings Retailing Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Electronic data interchange technology involves computer systems that transmit data between establishments.
  • House Construction
  • The construction of new homes.
  • Pos
  • Point-of-sale systems are used at checkout points to capture data at the time and place of sale.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Floor Coverings Retailing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Coverings Retailing:
    • 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 Coverings Retailing 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 Coverings Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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