Warren Buffett, right, graciously posing with SFA members and their families.

By Matthew Spieler
Orlando, Fla.—From products never before seen in the market to personal meetings with Warren Buffett, CEO of Berkshire Hathaway, and home fashions diva Kathy Ireland, Shaw Industries made sure the more than 3,600 people in attendance for its sixth biennial Shaw Flooring Alliance (SFA) convention did not leave Walt Disney’s Magic Kingdom disappointed.

Among those in attendance were 950 of Shaw’s best dealers and their families, who were invited to “Explore” all the new opportunities the manufacturer had on display—including an assortment of environmentally friendly carpets and wood, a new Kathy Ireland (KI) Home merchandising unit and products, educational sessions focused on helping dealers grow their businesses and the ability to talk one-on-one with the company’s executive management team, not to mention Buffett, whose company owns Shaw.

For Shaw, it was a chance to show members that despite the changes that have taken place within the company recently—namely the retirement of Bob Shaw, who led the mill for 48 years, and the promotions of Vance Bell to CEO and Randy Merritt to president—the culture and focus of the mill remains.

“One of the things that Mr. Shaw always stressed was that change is good and necessary,” Merritt said. “We’ve always been changing and this is just one more case. But who we are will never change. Our greatest asset is people who are focused on helping others improve themselves and their businesses, and that is something that will remain.”

Management made it a point of telling the membership how just about all of them have been with Shaw for 20 or more years, with many beginning their careers with the company.

Following an uplifting town hall style meeting with Buffett and Bell (see related story), executives stressed the importance of brands, both local and national, and how they can help drive traffic to member showrooms.

“You are the brand,” Merritt said. “Your neighborhood knows you, but a national brand is an important ingredient—it adds value to your business. Customers have a perception of your store, and having recognized and accepted brands only strengthens that perception and makes you their first choice for floor covering.”

That is where Shaw and the exclusive products it brings to SFA, such as KI, come in, said Scott Sandlin, Shaw’s vice president of residential marketing. He noted the company’s marketing efforts are getting proven results and members need to tap into them to help create sales.

The reason is consumers who are decorating their homes pay attention to the various advertisements in magazines, on TV and the Internet as they use them for research. This is especially true of the latter, as “two-thirds of the people who walk into a flooring store have been on the Web first,” Sandlin explained. “Shaw has realized this and we made a commitment to our Internet initiative—and it’s working.”

He noted the site was getting 120,000 visitors a week (6.2 million a year), and the number keeps growing.

Another important brand, said Kathy Young, Shaw’s creative director, is KI Home, which is “one of the fastest growing brands in the country. Consumers recognize it and trust it” and, when it comes to floor covering bearing the moniker, “it can only be found in your stores.”

Going green

While branding and education were of utmost importance at the convention—as evidenced by the more than 500 members sitting in on the first round of educational sessions—it was the products on the exhibit floor and what they represented that was creating most of the buzz.

Specifically, Shaw’s Green Edge initiative ( FCNews, Dec. 11/18), including new Anso- branded products that can now be recycled back into new carpet over and over without any loss of performance or styling (FCNews, Jan. 15/22), and Epic, an environmentally friendly hardwood floor in which the veneer uses up to two-thirds less harvested wood than comparable solid and engineered products. Plus, its core is made from wood fiber that comes from the manufacture of other products, and it comes from managed forests.

“The environment and accepting responsibility for it is an emerging trend among consumers,” said Merritt, who noted 72% admit they are concerned, 88% said they are interested to learn about environmental products and 80% actively recycle.

During an exclusive interview with FCNews, Ireland said the environment is “very important” to her customers. “Not only is she definitely aware, she wants to know how corporate America is dealing with it and she is willing to support those who are doing the right thing.”

That is one of the qualities that attracted her to Shaw. “All our product partners are very environmentally forward; it’s one of our core values, and Shaw has been an active participant from the start.”

She noted all the Anso products shown in her new colorwall display feature recycled content and can also be collected after their initial use and recycled back to new carpet.

Speaking of her new display, Ireland was “thrilled with how it came out. It was a collaborative effort, as everything we do is, between our design team and Shaw, as well as input from the consumer who is the most critical part of our design team. She tells me how she feels—what she likes and dislikes. Today’s mom is busy and concerned about making the right choice, so it’s critical to listen to her, and create products and displays to answer her needs.”

As she spoke, members lined up for the chance to meet the celebrity, something Ireland described as “educational for me. Dealers are on the front line, and it is a great opportunity to hear first hand from them. They are truly committed to a high level of service, so getting their input is invaluable.”

Based on the reaction of the members, both KI and Shaw were on target. “This colorwall is a home run,” said Tony Sicilia, of Hoffman Floors in New Jersey. “Between that and the green products—I love it.”

Mike Barthalomew of America’s Finest Carpet in San Diego, noted, “I live in a very green-friendly city—people are very proactive. Even builders are starting to construct homes that are totally green, and people have been coming into our stores asking about flooring and the environment. So what Shaw is doing with its Anso and Epic products fits right in with what’s going on in the marketplace.”

While interest in doing the right thing exists, Merritt said one of the biggest things needed to push it forward is education. To accomplish this, Shaw has launched a major initiative to train both its salespeople as well as dealers on how to sell and promote green products and the environment. This effort includes advertising the mill’s Green Edge program, training sessions for salespeople, DVDs for dealers, a Web site devoted to the subject and more.

“Up to now,” he added, “flooring was not thought about as an environmental option. If we can educate the customer on what we are doing she’ll participate because she understands everyone needs to be involved to complete the cycle. This includes making sure her carpet gets properly collected after its use so we can bring it back and turn it into new broadloom.”

Scott Humphrey, SFA’s marketing manager, told the membership the whole green initiative is a great chance for them. “Very rarely do you get an opportunity to lead in something so massive; something that affects everyone. And this is a full opportunity for our dealers and Shaw to be at the forefront.”