Article Number : 4901 |
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| Date | 9/29/2009 8:49:10 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4901 |
| Abstract | By K.J. Quinn The recession coupled with increased competition from natural surfaces and laminates continue to impact resilient’s market penetration. While vinyl sales are down, distributors say... |
| Article | By K.J. Quinn The recession coupled with increased competition from natural surfaces and laminates continue to impact resilient’s market penetration. While vinyl sales are down, distributors say it is declining at a lesser rate than overall flooring volume. “A beneficial side effect of the economic downturn for resilient is that many consumers are replacing hardwood, laminate and tile with the less expensive, strong performing resilient sheet goods,” said Keith Slobodien, president of Apollo Distributing. “Luxury vinyl tile (LVT) is also replacing wood and laminate for the same reason.” The sweet spot for resilient centers in the mid-price range, around $15 to $20 per square yard, according to industry estimates. Higher-end products have become a tougher sell in light of the growth of natural materials. And because the majority of sheet visuals are interpretations of slate or wood, people are inclined to buy the real thing when prices exceed $20 per square yard. “The higher-end resilient is suffering, while the value to mid-priced lines has declined at a lesser rate,” said Fred Reitz Jr., vice president of operations at J.J. Haines. While less volume is reportedly being done in the high end, an area where tile and hardwood are kings, distributors say vinyl is holding its own in the builder market, where base-grade and lower-end products are preferred. “Ceramic has been the primary hard surface used in Florida for years, but we see builders looking to put in less expensive products,” said Buddy Faircloth, executive vice president Armstrong, Cain & Bultman. “So there is a movement from tile to vinyl.” In the commercial sector, distributors report that vinyl sheet and floor tile sales continue to remain steady in the educational, institutional and healthcare sectors— three traditional strongholds for the category. End users, architects and designers continue to covet vinyl for its excellent performance and maintenance qualities and enhanced fashion appeal. Depending on the application, VCT represents anywhere from 50% to 70% of the commercial vinyl business, with the remainder consisting of specialty floors, such as solid vinyl tile. As a mature category, the challenge for vinyl is to continue to make it exciting in the eyes of consumers and retailers. Resilient mills are doing their part by unveiling groundbreaking products featuring new constructions and backings, cutting-edge colors and designs. “We are selling and promoting vinyl strongly and introducing new products in this category such as CushionStep,” Haines’ Reitz said of Armstrong’s fiberglass product. “We are moving on a number of fronts simultaneously, such as more promotions and investment in merchandising, more training of product knowledge for our reps, and more training and spiffs for dealers.” Johnson Wholesale Floors reports that dealers are more open to its presentations on Tarkett’s FiberFloor product due the value it offers, compared to wood and laminate. “There is a lot of value for the price in the new resilient products,” said Melinda McChesney, president. In spite of the recession, distributors say they continue to invest in the resilient business. This is being done with the expectation that when business conditions start to improve, they will be in a position to gain market share and increase sales. “We are building our brands, strengthening our relationships, placing displays, selling sample updates, training our people and internally, improving our systems,” Apollo’s Slobodien said. While distributor and retailer product mixes include less vinyl than in years past, it remains a viable category as the excellent price-value relationship translates into high profit margins for retailers—typically over 30%. “We’re totally dedicated to the vinyl business,” Cain and Bultman’s Faircloth declared, adding that displays and samples continue to gain placement at both the retail and builder markets. “That’s what brought us to the party for years before introducing new product categories.” |