Hollywood, Fla.—As Mohawk’s Floorscapes members gathered here for the group’s fourth annual convention, one couldn’t help but sense the excitement dealers felt about the network’s growth, the opportunities they share and the new Studio showroom. Over 80% of the more than 450 Floor-scapes members—representing 600 storefronts nationwide—were in attendance for the event at the Westin Diplomat Resort & Spa. “The economy is showing signs of recovery everywhere you look,” Jeff Lorberbaum, president and CEO of Mohawk Industries told members. “According to reports, the third quarter will exceed expectations and growth will be at over 8.2% in the quarter, the fastest expansion in more than two decades. Corporate profits are rising, and consumer confidence is up with one of the largest one-month improvements since December 2001.

“In addition, mortgage rates remain at a historic low,” he added, “and most economists believe they will remain through most of 2004. This is really good for our industry. Total retail sales increased more than 7% in September, the strongest monthly improvement in three years. Home furnishing sales increased 6-1/2% while in housing, existing home sales continued at record setting paces in September. “In fact,” Lorberbaum continued, “September’s annualized sales rate of 6-1/2 million units set a third consecutive monthly record. Likewise, new home sales have increased for the fifth straight month while home ownership hit an all-time high of 68% in the third quarter. The tax reduction plan is stimulating the economy while lower capital gains rates con tinue to allow individuals in businesses to invest more in goods and services.

Corporate spending is finally rising as well, and a pent-up demand in commercial renovation will be good for our industry in 2004.” In addition to the positive economic news, members were treated to a spate of educational seminars, networking opportunities and new products as well an inspirational appearance by former astronaut and Apollo 11 legend, Buzz Aldrin. But Aldrin wasn’t the only buzz at the event, especially after the unveiling of the Floorscapes Studio. Also noteworthy were the 36 prospective members who attended the event, more than 90% of which signed up for the program, along with a few unscheduled walk-ins who also became members. “One challenge the entire industry has faced is how to integrate soft and hard surface products so the consumer can see how they work together, and to simplify the consumer’s selection process,” said vice president of retail marketing, Manny Llerena. “We’re very excited to unveil a new idea we believe accomplishes this—and gives Floorscapes stores a decided advantage.

“This new design concept is a departure from traditional floor covering environments where so much is based on practicality and price,’” he added. “It is a showroom that really takes things to a whole new level based on decorating and fashion. The hard surface area, a key element of the showroom, is now coordinated with the soft surface products giving the consumer one message: It’s clear for her what her shopping experience is going to be like in an easy-to-buy environment.” The showroom, which, after some tweaking, is scheduled to be installed in stores in March 2004, offers a fully integrated hard surface department featuring everything from ceramic tile and laminate flooring from Mohawk, hardwood from Anderson, and vinyl products from Congoleum and Mannington.

A new “Dreamscape” idea center allows consumers to browse hundreds of room scenes and helps them visualize the decorating options available in the selection process. New 3-D wall graphics provide inspiration and help the customer realize her decorating style, noted Llerena. While the entire Floorscapes Studio would require approximately 10,000 square feet of showroom space, several levels featuring components of the complete system not requiring as much space were made available to members as well. “Everything she sees is based on decorating. Research has shown one thing time and again: Consumers really want the ability for one-stop shopping in floor covering and decorating products. With the hard surface products, floor care products, a rug program, and window treatments, dealers are in the position to give their customers something they previously have not had—the ability to buy much, much more from one knowledgeable source.”

Other programs featured at the show include Mohawk Select, a new area rug program offer ing more than 160 in-stock rugs; the Mohawk Custom Window Fashions program, which debuted last year and received several improvements based on retailer feedback, and the Mohawk Professional Truck Mounted program, which features one system for carpet cleaning and another for dust-free hardwood refinishing. “We really stepped to the plate in creating the Mohawk Select area rug line,” said Merle Johnson, vice president of marketing for Mohawk Home. “We responded to the inventory request. It will be a very quick ship and we can do drop ships on this program to the end user for the retailer.”

The program utilizes a color card system which shows what interior colors, including furniture and wall colors, the rugs will coordinate with. “The members love the new card system,” she said. “The concept behind it is that it will be color correct. It’s also an advertising vehicle as you have the colors giving the customer free decorating tips as you’ll have all the colors on the back so she can use them to match her furniture, drapes and other things in the room.” Fred Giuggio, Southeast regional sales manager for Quick-Step, a new vendor to Floorscapes, said, “We like being in the Floorscapes environment it was just a matter of putting the two companies together and building a partnership and that’s what we are really excited about. With the Studio concept, Mohawk has really done the right thing. It has taken a very exciting environment and just improve upon it. We are real pleased with the way the show is going as well.”

“I think it’s awesome,” said Marty Schallock, owner of Malkin’s Carpets in Menomonee Falls, Wis., of the Floorscapes Studio. “It’s a new and unique way to show your products. It’s beautiful. A lot of thought and effort has gone into this. You can see it. It’s not something they thought of overnight. It didn’t just happen. “We do mostly soft surface, but our hard surfaces are up, mostly in the hardwood and laminate areas,” he explained. “We need to get more concentrated on ceramic tile as well. We need to show more, feature more and get our salespeople more educated in ceramic tile. And with what we see here, it’s a perfect opportunity for us to move forward with all that. It’s user friendly, consumer-friendly—it’s great. We not just selling flooring, we’re selling fashion and style. And this really shows that.”

“Mohawk has done a good job with the rug program,” said Lonnie Bushey of True Colors Flooring in Fort Wayne, Ind. “It has come out with a lot of new designs. It’s also doing a great job with the hard surface program with the ceramic tile and the hardwood. That’s one of the biggest things Mohawk needed to work on and it has. We sell a ton of hardwood and ceramic tile, so to have it organized the way Mohawk is doing it is really great. It helps us.” “The Studio is very innovative,” said Jennifer Ellison, interior design consultant for Troy Furniture & Carpet in Troy, Mo., “and also very stylish. It targets our number one consumer, which is typically the woman in the household. The signage is very appealing and the Idea Center will be very helpful. “In lieu of salespeople who may be busy and unable to get to a customer immediately, the Idea Center gives her something to look at to get some ideas and to educate herself if she is not decorating savvy,” she explained.

“The expansion of the hard surfaces is very exciting as our business trend is turning toward hardwood and ceramic tile, especially to the upper end custom home, where consumers are into the handscraped hardwoods, porcelains and granites. “If we had the square footage we would probably do everything that is being shown here,” added Ellison. “For now, we will definitely be updating all our signage and retrofitting many of our displays and headers.” “The Studio is fantastic,” said Hiram Oyola, president of Tile Barn Carpet & Interiors in Plant City, Fla. “I think they outdid themselves this time. I’m very impressed with the presentation. It’s very professional and very user-friendly. “We’re getting ideas for a bigger store that we will be opening,” he added.

“The size of the showroom will not be as big as this, but very close. We really like the presentation of the hardwoods, the laminates, as well as the Dal-tile and American Olean product display. We also like the Idea Center, but will probably modify it a little bit, making it more friendly for our needs.” “Mohawk has made the Studio so easy to understand,” explained Oyola. “Being in the flooring business for as long as I have been, I’d say that, years ago, the customer would rely on what the salesman would say. Now we have a different clientele. She is very well educated. This system is so user-friendly, all she needs to do is read as all the information you could ever think of is right at her fingertips. So life is easier for the salespeople as well as for the consumer.” “I like the new color direction of the new Studio,” said Cindy Denton Corbett, owner and design er of Loveland Design Center in Loveland, Colo.

“The general concept is good. It sets Mohawk far above and beyond anything else going on out there. Everybody else has to either design their own or find a firm that is going to design their own showroom and implement that, but I think Mohawk has really set itself apart with this. I think it’s a great concept.” “The whole Floorscapes Studio concept has been received extremely well especially in light of the fact it has four levels of commitment that can be made and phased into over a longer period of time,” said Mark Olson, marketing manager. “The integrated hard surface offerings have been long overdue and is now put forth in a very concise, even sightline in the store to match the soft surface side of the store that’s been working for five years.”

“Most of the members look like they will be moving forward with some portion of the new concept,” said Lorberbaum. “They are all trying to expand their hard surface businesses and they really like the hard surface offerings.” “The reaction to the Studio has been overwhelmingly positive,” concluded Llerena. “There has been a tremendous amount of interest on the hard surface part of the business now, matching with the soft side of the business. The members can sense that it is truly a decorating center where they can focus on fashion. We’ve had tremendous reactions on it. Many dealers are prepared to start making the transition as quickly as we can get it in their stores.”