By Steven Feldman
OAK BROOK, ILL.—In the mid-1990s Pergo single handedly launched the laminate flooring category in the U.S., a segment that today is comprised of a multitude of manufacturers that collectively contribute to a $1.4 billion business at wholesale. Much has transpired in these last 14 years, which has led Pergo to initiate a major repositioning of its line.

In short, simplification is the name of the game. The Pergo portfolio will now be comprised of just four collections led by a new premium product offering dubbed Elegant Expressions by Pergo.

Exclusive to the specialty retailer channel, Elegant Expressions “takes the best of everything Pergo and incorporates it into one premium collection,” said Suzi Hunneman, marketing manager.

Until now, Pergo offered the Vintage Home traditional strip, Vintage Home planks and World Traveler collections. Some products offered attached underlayments; some offered embossed in register; widths varied from 3½ to 5 inches; cores were either 8mm or 10mm, and retail price points ranged from $3.69 to $4.19.

No more. Pergo has taken the best designs and attributes of the three sub-brands and morphed them into Elegant Expressions, which also benefits from some completely new designs. All products will now offer a 10mm core and 2mm attached underlayment.

There will be two formats, 5-inch (16 SKUs) and 8-inch (12 SKUs), all with a micro bevel. Exotics will get a higher gloss level to better emulate real wood, and “the best embossed-in-register technology in the industry” will appear where it is warranted, said Mike Neilsen, vice president of sales. “Our tolerance for EIR is tighter than any other manufacturer.” Every product in the line will carry a $3.99 retail price point.

According to Geroge Kelley, president and CEO, confusion at the retail and distribution level is what drove this initiative. “We wanted to simplify things, get back to basics, come out with one price point with the best options of any laminate manufacturer.”

Neilsen believes Elegant Expressions offers some of the best aesthetics on the market. “We went to the latest hardwood trends in terms of décor,” he said. “The result is high-end styling with more exotic patterns and darker, richer colors. We hit the market right.”

He also thinks the 10mm core will be a difference maker in the minds of consumers. “First of all, there is perceived value,” he said. “If it weighs more it’s considered to be a premium. Second, most of our competitors’ products have 7mm or 8mm cores. Some get into the 9mm range. Third, there is no 10mm product in the home center.”

Pergo has backed Elegant Expressions with a lifetime warranty. As well, a new patent-pending protective overlay, ScratchGard Advanced, offers two benefits: better scratch and scuff protection, and greater clarity. “The new overlay provides 30% greater scratch and scuff protection than the existing LusterGard Plus,” Neilsen said. “The second benefit is resin reformulation to provide greater clarity—more vibrant colors, more realism.”

Commercially speaking

The second new collection within the revamped Pergo portfolio is Pergo Commercial, which consolidates the HPL Pergo Select and Pergo Select Planks under one umbrella.

“Our goal this year is to consolidate or simplify our product offering and capitalize on the Main Street commercial segment that already exists in the retail channel,” Nielsen said. “What we’ve done in positioning our commercial product is incorporate designs that are kind of niche, that will work well in the Main Street arena.” He noted an example is carbonized oak. “You need to have trendy designs in commercial. You need eye catchers. Then you can put in your cherrys oaks and maples.

“This collection is targeted toward Main Street and strengthens our overall product portfolio because the positioning of Pergo Commercial will work in commercial as well as the residential arena.”

To that end, Pergo Commercial will be merchandised side-by-side with Elegant Expressions. “It speaks to the Pergo brand,” Nielson said. “Elegant Expressions is the premium collection, while Pergo Commercial lends itself to the perception of added durability. We feel the commercial name gives the retailer an up-sell.”

Pergo Commercial will offer 14 SKUs, all with a 10mm core in 5- and 8-inch formats. The new TitanX surface protection is the HPL version of ScratchGard Advanced. In addition, Pergo enhanced the line with antimicrobial and anti-static properties. The line will retail for $4.19.

The Pergo portfolio is rounded out by Accolade Plank and Everyday, both of which remain unchanged. Accolade offers 12 SKUs with an attached back and retails for $2.97 to allow the independent retailer to compete with the home centers, while Everyday is the entry-level collection in four SKUs.

Merchandising

Pergo is overhauling what has been its successful Diamond display to accommodate the new brand positioning. “It is the shell of our Diamond display with a new header, now 9 ½ feet wide versus 8 feet, new side panels, hardware and signage,” Hunneman said. “But what was successful about the Diamond display we’ve kept in that expansion and updating capabilities.”

Hunneman noted that another goal was to merchandise the narrow-width product the same way hardwood is merchandised in the marketplace. Traditionally it is shown in a 16 x 16 or 18 x 18 mounted sample. But most significant is the flexibility now that Pego has reduced its SKUs from 74 to 58. “The rack was too busy,” Nielsen said. “This allows us to merchandise product properly. Better sample sizes.”

Aside from the merchandising, reducing SKUs by 20% allows distributors to stock more of the more trendy patterns. Kelley added that it also helps the company internally from a production standpoint. “Inventory management is a crucial part of our business, and this is one step in controlling cost and better serving distributors and retailers. Another byproduct will be better speed to market.”

Pergo is supporting the revamp with print ads in 13 consumer shelter magazines and spots on seven cable TV networks. As well, in the fall there will be print ads specific to Elegant Expressions.