City Of Industry, Calif.—Four months after acquiring Color Tile ( FCNews, April 29/May 6), Alliance Flooring rolled out its brand new hard surface system to its members in a big way at the company’s recent annual summit here. With hard surfaces growing more and more popular with consumers, executives believe there is no time like the present to help their CarpetsPlus, Color Tile and Carpetland franchisees help themselves while taking advantage of the Color Tile name. Despite the fact Color Tile, celebrating its 50th anniversary in 2002, experienced some difficult times in the recent past—dropping to under 100 stores six years ago and declaring bankruptcy—CarpetsPlus believes the Color Tile name is still “top of mind” with consumers.

Accordingly, and to the delight of its members, the group, which employed the theme, “The Power of Brands” for its convention, has put together a hard surface system designed to work with its soft surface programs. As a matter of fact, the launch was so successful that by the last day of the convention, every retailer in attendance had signed on to become a licensed Color Tile dealer. “I would say that my expectations were that we would probably have more of an uphill battle with this than we’ve had,” said Ron Dunn, CarpetsPlus’ copresident and CEO. “But once the dealers got a look at the displays and we talked about the value brand concept, their reaction was overwhelming. We had a need for hard surface, and they are getting behind the program.” “This convention and the re-launching of Color Tile has been extremely gratifying,” said Carpets-Plus’ co-president, Jon Logue.

The Color Tile program was introduced as a way for existing flooring businesses to acquire instant brand identity and recognition through a store within a store concept. A recent survey found that more than 80% of Americans 30 years of age and older recognize the Color Tile brand name. This is evidenced by the fact that there are three million visits to the Color Tile Web site each year. With approximately 80 Color Tile, 38 Carpetland and 270 CarpetsPlus stores, the deal was viewed as a win-win for everybody. “One dynamic I like has the Color Tile dealers learning more about soft surface from the CarpetsPlus people, and, in turn, the CarpetsPlus people are learning more about the hard surface business from the Color Tile retailers,” said Dunn, who sees Color Tile and CarpetsPlus becoming one within six months. “And the Carpetland dealers add another dynamic as they are truly a franchise unto themselves, especially in the Midwest. They are really excited about this three-pronged alliance.”

“From the Color Tile side, they were really excited when the merger happened because they didn’t have a carpet program put together,” said Tony Fry, membership development for CarpetsPlus. “So it was a no-brainer for them to bring a carpet program into a predominately hard surface selling store. What’s so interesting at this convention is, the CarpetsPlus and Carpetland dealers haven’t done a very good job selling hard surfaces. Their percentages were way down compared to the Color Tile people, but they are so superior in carpet. “So this was a no-brainer for them,” he added, “especially with what they’ve seen of the pricing, rebates and all the other benefits that go along with it. They are just as excited as the Color Tile dealers with the merger. It makes sense. Now you have a system where can literally move your samples into a store and open up the next day as a brand new store.”

“I think one of the biggest challenges we are going to face is the growth,” said an optimistic Kevin Corsini, brand manager for Alliance Flooring, the umbrella company of Carpets-Plus, Carpetland and Color Tile. “Our challenge is to grow at a manageable pace, where we maintain the relationships that are important with both our dealers and vendors, and we build systems that will last. Because it’s more than just a name, it’s about building systems to support it.” And with a new hard surface program and advertising campaign celebrating Color Tile’s 50th anniversary, all the retailers in attendance knew they had a great opportunity before them.

“The main reason I’m getting involved with the program is to build a segment of the business that I am weak in, that being the average retail customer,” said new Color Tile member, Dave Anderson of Anderson Floors in Lake Dallas, Texas. “My background is in carpet, then I learned more about and started selling tile. Until now, I had concentrated more on upper end builder work. “The focus for me now is going to be on retail, merchandising, store layout—many of the things I didn’t think were important in the past,” he explained. “That’s where I think this program will help.” “The Internet sight, the branding and the Color Tile displays, the total package is just going to enhance our hard surfaces area where we were lacking,” said Michael Moore of Carpet Network of America in Medford, Ore.

“There is a lot of confusion in the marketplace for the consumer, whether she is visiting the big box store or XYZ re tailer. When she comes into our store, it is much more uniform. It is going to help our hard surface area where we were lacking be fore. These new displays tie everything—soft and hard surface—together, the CarpetsPlus way.” FCNews columnist, Warren Tyler, the event’s key-note speaker, told members despite the growth of other buying groups, Color Tile remains the only floor store brand name recognized from coast to coast. “Becoming a Color Tile licensed dealer will not only drive traffic into your stores, but also add value to your product selections. This one of the most strategic moves a buying group has ever made.”

Logue recognized the Alliance Flooring advisory board’s pivotal role in the planning process. “In only 90 days, we were able to develop a private label hard surface program with national pricing and dis tribution and a highly styled in-store merchandising system. Each member is due proper recognition and appreciation.” Color Tile Boutique System The first component of the Color Tile Boutique system unveiled in the program launch and available to dealers early next year is the Color Tile Design Gallery. The Gallery is Color Tile’s private label merchandising program and includes six custom displays featuring a wide selection of tile, laminate and hardwood products. It consists of a flip-card rack for ceramic tile as well as a loose sample rack. “These products were chosen from the ‘best of the best’ in each flooring category,” said Dunn.

The second component offered is the Color Tile Select Series, a collection of products from core suppliers—including wood from Mohawk Industries, wood and vinyl from Mannington Mills, and Wilsonart and Quick-Step laminate, and Congoleum’s Durastone—all who have agreed to co-brand with Color Tile. “This offering allows retailers to retrofit existing display headers and graphics with the Color Tile brand and allows vendors to display their name alongside Color Tile,” he said. Retailers in the Color Tile program receive national pricing, distribution on all products, guaranteed delivery and extended warranties, Dunn noted. Each component brings reduced pricing, co-op advertising and increased rebates for retailers in the Color Tile program.

“Suppliers of hardwood, vinyl and laminate all aggressively negotiated to become members of the Select Series. Those chosen as partners agreed to support the program with numerous benefits, such as co-branding Color Tile in their national advertising.” Color Tile’s last component is a regionally selected private label program. Additional tile and stone products are provided through regional distributor programs that licensed dealers will be able to sell under the Color Tile name. These products will serve to meet the unique fashion demands found in each part of the country. “Paired with the Design Gallery and the Select Series, Color Tile retailers will be able to offer a full selection of hard surface products to meet their customers’ needs,” said Logue.

With Color Tile offering a brand name and CarpetsPlus debuting its new displays, all the members who attended agreed the venture was a win-win for everyone involved. “The CarpetsPlus dealers were very happy with the Color Tile program. “This is a natural coupling,” said Wendy Werner of Carpet Town in West Allis, Wis. “It takes a brand name and connects it to CarpetsPlus. And it complements our existing programs in so many ways. It is making hard surface what it needed to be at CarpetsPlus; it says we are serious about hard surface as well.” Travis Wichern, who owns five Minnesota-based Color Tile stores, was delighted with what he saw at the summit and with the progress Color Tile has made with CarpetsPlus. “In three months, we’ve moved forward faster than we did in the previous four years. We’ve been really happy with what we have seen and we’ve ordered the new display systems for a couple of our stores. We will see how things go and then add as we go along.”

“I signed up with Color Tile the minute I first heard of the opportunity of becoming a licensee,” said Color Tile member Doug Bolton of Carpet Barn in South Lake Tahoe, Calif. “I immediately wanted to be associated with the name. When CarpetsPlus bought the name, I had never heard of them. Now that I have come to this convention, I can see it is going to be a very good relationship. There is so much here that is going to help us to be organized in our store.” “The displays are outstanding,” said John Ayer of Northwest Floors/CarpetsPlus of Cor vallis, Ore. “This is a super addition to the CarpetsPlus program. It gives us a hard surface program that is a co-ordinated system. And the name recognition of Color Tile is a great advertising opportunity for all the CarpetsPlus dealers.”

“Seeing how the market is going more and more into ceramic tile and hardwood, this program falls right into line with where we’re headed,” said Sid York of Carpetland USA in Flint, Mich. “And having a recognized name keys into drawing more traffic. It’s a nice combination. The timing could not have been better and with the name to follow it up, that makes it even stronger. With advertising, it gives you a little bit more bang for your dollar as well. Overall, it’s a good program.” “I’ve thanked the Color Tile people for coming on board,” said Werner. “We needed them, their expertise, help and insight. That’s what they’ve done here. Color Tile still has a powerful name. That’s what we think will make a difference. “For the CarpetsPlus dealers, having the new hard surface systems in their stores will let their customers know we are serious about our hard surface business,” she concluded. “I believe this is the beginning of a really successful marriage.”