The top issues impacting the specialty retailers' area rug business are increased competition from other flooring channels, the increasing number of big-box channels and eroding profit margins.
The biggest challenges for carpet/area rug manufacturers over the next two years are: installation services, cited by 56 percent of respondents; alternative hard-surface flooring, identified by 55 percent; product innovation, 36 percent; and ability to meet consumer demand, 25 percent (multiple responses allowed).