VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Saturday, January 10, 2026
Floor & Decor Holdings, Inc.
FND · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Floor & Decor is a U.S. specialty retailer focused on hard-surface flooring and related accessories, operating warehouse-format stores and an e-commerce channel, with a smaller commercial surfaces business (Spartan). In retail, its moat is primarily supply-driven: direct sourcing and purchasing scale support everyday-low-price positioning, while large in-stock stores and distribution capabilities improve immediate project fulfillment. Demand-side advantages are more modest and center on price trust and Pro-oriented convenience/loyalty. Both retail and commercial end-markets are competitive and fragmented, which limits pricing power.
Primary segment
Floor & Decor Retail
Market structure
Competitive
Market share
9%-11% (reported)
HHI: —
Coverage
2 segments · 8 tags
Updated 2026-01-08
Segments
Floor & Decor Retail
U.S. retail hard-surface flooring and accessories
Revenue
95%
Structure
Competitive
Pricing
weak
Share
9%-11% (reported)
Peers
Spartan (Commercial surfaces)
U.S. commercial hard-surface flooring specification and distribution
Revenue
5%
Structure
Competitive
Pricing
weak
Share
—
Peers
—
Moat Claims
Floor & Decor Retail
U.S. retail hard-surface flooring and accessories
Revenue/profit shares are approximations based on the company's 10-Q segment table for the 39 weeks ended 2025-09-25 (Retail net sales $3,375.6m; Other $178.8m; Retail operating income $207.7m; Other $10.4m).
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength
Durability
Confidence
Evidence
Direct sourcing relationships and purchasing scale reduce intermediary costs and support everyday-low-price positioning; harder for smaller specialty flooring retailers to replicate.
Erosion risks
- Big-box peers match direct sourcing advantages
- Tariffs or trade restrictions raise import costs
- Supplier disruptions or longer lead times
Leading indicators
- Gross margin trend
- Import/tariff exposure changes
- Vendor concentration trend
Counterarguments
- Large home improvement chains also have substantial sourcing scale and can pressure vendors.
Distribution Control
Supply
Distribution Control
Strength
Durability
Confidence
Evidence
Warehouse-format stores with deep in-stock, job-lot quantities plus regional distribution centers and omnichannel pickup/delivery improve immediate availability and project completion convenience.
Erosion risks
- E-commerce fulfillment improves across competitors
- Real estate and labor cost inflation compresses store economics
- Inventory risk if demand weakens
Leading indicators
- Store count growth
- Inventory turns and in-stock rates
- Comparable store sales trend
Counterarguments
- Big-box home improvement retailers have larger store networks and can invest heavily in omnichannel fulfillment.
Scope Economies
Supply
Scope Economies
Strength
Durability
Confidence
Evidence
Broad assortment across flooring + installation materials/tools + accessories increases basket size and reduces customer need to multi-source.
Erosion risks
- Customers unbundle purchases online
- Manufacturers expand direct-to-consumer channels
Leading indicators
- Attachment rate of installation materials/accessories
- Average ticket size trend
Counterarguments
- General home improvement retailers can also serve as one-stop destinations and have broader category adjacency.
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Everyday-low-price strategy (vs frequent promotions) aims to build customer trust that they are getting consistent value without waiting for sales.
Erosion risks
- Competitors price-match or intensify promotions
- Brand damage from quality or service issues
Leading indicators
- Customer satisfaction/NPS trend
- Repeat purchase rate among Pros
Counterarguments
- Flooring is often an infrequent purchase; trust alone may not prevent switching when price/availability is similar.
Procurement Inertia
Demand
Procurement Inertia
Strength
Durability
Confidence
Evidence
Pro-focused services (credit, storage, early hours, pickup logistics) and a Pro loyalty program can create repeat purchasing habits, even if switching costs are not contractual.
Erosion risks
- Competing Pro programs (HD/LOW) reduce differentiation
- Pros multi-source based on job needs and local availability
Leading indicators
- Pro mix of sales
- Loyalty program liability/redemption activity
Counterarguments
- Pros can switch stores easily; benefits may be convenience-based rather than true switching costs.
Operational Excellence
Supply
Operational Excellence
Strength
Durability
Confidence
Evidence
Data-driven inventory forecasting and store-level localization support in-stock job-lot quantities and fast reaction to demand shifts.
Erosion risks
- Forecast errors lead to markdowns or stockouts
- Competitors close the analytics gap
Leading indicators
- Inventory shrink and markdown rates
- In-stock rates for top SKUs
Counterarguments
- Large retailers can build comparable forecasting and replenishment systems over time.
Spartan (Commercial surfaces)
U.S. commercial hard-surface flooring specification and distribution
Revenue/profit shares are approximations based on the company's 10-Q segment table for the 39 weeks ended 2025-09-25 (Other net sales $178.8m; Other operating income $10.4m).
Procurement Inertia
Demand
Procurement Inertia
Strength
Durability
Confidence
Evidence
Specification-driven purchasing in commercial flooring can create relationship and specification inertia once products are specified through architects/designers and contractor channels.
Erosion risks
- Manufacturers bypass distribution or win specifications directly
- Cyclical downturn in commercial construction
- Relationship churn as projects/teams change
Leading indicators
- Commercial pipeline/backlog indicators
- Win rate in architect/design specifications
Counterarguments
- Distributor relationships are rarely exclusive; switching can occur project-to-project.
Evidence
We procure the majority of our products directly from manufacturers... Direct sourcing is a key competitive advantage.
Explicitly links direct sourcing (enabled by scale/resources) to advantage versus smaller specialty competitors.
The cost savings we achieve by directly sourcing... enable us to offer our customers everyday low prices.
Connects supply-side cost advantage to retail pricing strategy.
By carrying a deep level of in-stock hard surface flooring inventory... we seek to offer our customers immediate availability.
Supports availability/fulfillment advantage from stocking depth and store model.
Our warehouse-format stores... average approximately 77,000 square feet.
Large footprint supports breadth/depth of in-stock assortment relative to specialty peers.
We carry an extensive range of products... to fulfill a customer's entire flooring project.
Direct statement of one-stop assortment spanning multiple product categories.
Showing 5 of 12 sources.
Risks & Indicators
Erosion risks
- Big-box peers match direct sourcing advantages
- Tariffs or trade restrictions raise import costs
- Supplier disruptions or longer lead times
- E-commerce fulfillment improves across competitors
- Real estate and labor cost inflation compresses store economics
- Inventory risk if demand weakens
Leading indicators
- Gross margin trend
- Import/tariff exposure changes
- Vendor concentration trend
- Store count growth
- Inventory turns and in-stock rates
- Comparable store sales trend
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.