As the flooring industry faces tightening margins and shifting market dynamics, kitchens and baths emerge as resilient categories offering strong add-on sales opportunities and impressive ROI.
In an evolving home improvement landscape, flooring retailers are increasingly eyeing kitchen and bath remodels as a natural extension of their core services. These spaces not only drive higher project values but also allow for cross-selling a wide range of products, from tiles to luxury vinyl and even cabinetry.
Key Insights
- Kitchens and baths account for over 40% of residential remodeling spending in the U.S.
- Dealers see strong returns by bundling flooring with countertops, cabinets, and backsplashes.
- Showroom upgrades and in-house design services are key competitive advantages.
- Labor shortages and inflation are still affecting project timelines and costs.
- Builders and remodelers value one-stop solutions provided by flooring retailers expanding into kitchen and bath.
Expanding Services for Long-Term Value
Many flooring dealers have responded to consumer demand by offering turnkey kitchen and bath solutions. This shift allows them to capture a greater share of the remodeling dollar while strengthening customer relationships. Showrooms are adapting to this trend by dedicating space to vignettes, hiring kitchen and bath designers, and investing in higher-margin product lines.
Tackling Challenges with Strategic Growth
Despite the opportunities, the transition is not without hurdles. Labor shortages continue to impact installation schedules, and inflationary pressures are squeezing budgets. However, retailers who navigate these challenges through supply chain partnerships and skilled design staff are seeing significant benefits.
Summary
With homeowners focusing more on kitchen and bath remodels, flooring dealers who diversify into these segments are poised for growth. By providing end-to-end remodeling services, they enhance their value proposition, improve customer retention, and tap into high-margin opportunities.
