MILESTONE: Alliance Flooring, one of the industry’s largest buying groups, just concluded its 10th anniversary convention in Atlanta and it was a landmark event. Attendance reached virtually maximum percentage levels and strong supplier support bolstered the optimism of the ebullient retailers. They were informed, enlightened and entertained and addressed by top industry executives. Jeff Lorberbaum, CEO of Mohawk Industries, stressed the need to understand who your customer is: Women bring in half the income and earn half the bachelor degrees. “These are the CPOs—the Chief Purchasing Officers. They are the decision makers and control $7 billion of the Gross Domestic Product—that’s power!” He urged retailers to use legitimate innovations to get her to your store. Offer her genuine help, no gimmicks. “These are challenging and important times for the industry. Times are tough but we have the opportunity to produce the greatest results. Behavioral patterns have shifted; she wants better quality, styling, performance, and she’s willing to pay for it.” The audience loved it.

TRIBUTE: At Surfaces 2007, the World Floor Covering Association ( WFCA) created a continuing memorial to honor Howard Olansky, industry icon whose storied career touched so many lives. The inaugural Howard Olansky WFCA Affiliate of the Year award, renamed as a tribute to the renowned publisher and editor, was presented to six distinguished organizations: the Chicago Floorcovering Association, the Maryland-Northern Virginia Floor Covering Association and the Washington State Floor Covering Association in the Large Association category. The Central Florida Floor Covering Association, the Southern Nevada Floor Covering Association and the Wisconsin Floor Covering Association in the Small Association category. The six winners were given inscribed gavels.

UPDATE: In my last column I reported that Home Depot contemplated selling its wholesale division, HD Supply, “because of low profits.” Since then, the company announced it hit its 2006 target of more than $12 billion in sales; that’s about 12% of Home Depot’s total volume of $90.8 billion. With robust sales like $12 billion, management might want to revisit the “low profits” assessment and re-think divesting the unit. Sales in the retail division experienced lighter growth, up only 2.6%, though overall sales were 11.4% over the previous year. Profits hit $5.8 billion, not too shabby. Same-store sales last year were down 2.8%, impacted by a slow fourth quarter, with profit falling 28% to $925 million from $1.3 billion a year ago. Home Depot blamed it on the slowing housing market. Could be.

COPING: Many flooring retailers say they are feeling the brunt of a tapering housing market and that they must adjust to the changes—particularly those who do a brisk business with builders. Some are changing strategies by seeking appealing products for remodelers and considering new demographics. Floor covering stores account for about $1.5 billion in home channel sales, according to the Department of Commerce, and the retailers involved in that business are concerned when the housing market slumps. A New England retailer at Shaw Industries’ regional show in Connecticut in January said he was looking for new carpet colors and patterns for the commercial market as an alternative to the housing slowdown. Another dealer said he has shifted his focus to replacement business. “That might be slower, but it’s surer,” he said. Then there are those who are coping and waiting for the housing market to rebound.

ADDENDUM: Cope, adapt, change, but stay in the race. Remember, nothing is more rewarding than to watch someone who says it can’t be done get interrupted by someone actually doing it.