Houston—All systems were go for Carpet One as the industry’s largest buying
group launched its biannual barrage of new products and programs with several
hundreds of its members in attendance here at the brand new Hilton Americas
Hotel from Feb. 19 to 21. With “One Vision. One Choice.” as its theme, Carpet
One wanted to let franchisees know they should market themselves as the onestop
shop for all types of flooring.
In keeping with that focus, the group announced the refinement of its
SelectAFloor program for ceramic tile. While introduced at the organization’s
summer show, ( FCNews, Sept. 1/8), the group listened to its members and refined
the system to offer an even more regional focus. Mills providing product for the
system include Crossville, Daltile, Mohawk, Mannington, and Shaw. “We
continuously and relentlessly look at and analyze the facts of our ever-changing
industry and how Carpet One is positioned to maintain our role as a flooring
leader and to continue to increase your market share,” Alan Greenberg, co-CEO,
told the members.
Programs designed to add more offerings to Carpet One’s rug, broadloom and
hard surface selections were announced, as well as an innovative computer
program that will be unveiled in the near future. Destination Carpet One, a new
store layout was also introduced. New marketing and advertising initiatives also
debuted, as well as new vendors such as Laufen and Prestige and the new Flex
Floor product from Balta. Other initiatives include a sales incentive program
for sales professionals called the Triple Crown Challenge; participation in
“Let’s Make A Difference Day,” was announced, in which school libraries and
media centers across North America will receive complimentary makeovers courtesy
of their local Carpet One store.
In addition, a fundraising campaign, “Carpet One Welcomes Your Support,” will
take place in October during National Breast Cancer Awareness Month. Carpet
One’s more than 1,000 retail stores throughout North America will be selling
specially designed welcome mats, with proceeds being donated to local breast
cancer charities. Another one of the new initiatives announced includes a
builder deal called the New Home Show-case program. Designed to meet the
flooring needs of the residential construction market, the program brings an
“unprecedented level of customer support and comprehensive warranties to home
builders nationwide,” said Howard Brodsky, Co-CEO.
The Carpet One Home Showcase program offers home builders an extensive
selection of high quality hard and soft surface flooring options for new home
construction. Each product is backed by a Carpet One SelectAFloor warranty,
developed specifically for the builder market to suit the requirements of the
builder. “Our new Home Showcase program provides members with a great
opportunity to build their businesses by targeting the needs of the growing new
home construction industry,’ said Charlie Dilks, Carpet One’s co-COO. Carpet One
members will have an opportunity to select the products best suited to their
particular market. The comprehensive assortment will be showcased in displays
suited to the builder/model home industry. All flooring options will have a
one-year price guarantee as well as an assortment of “quick-ship” products to
choose from.
Not all was about new and improved products and programs at the convention,
however, as Carpet One discussed the price hikes affecting the industry. “By now
you’ve heard the price of fiber is going up,” said Sandy Mishkin, president of
CCA Global Partners, Carpet One’s parent company. He added that a second round
of increases, from 6% to 8%, will take effect in March. “I can tell you the
manufacturers are extremely firm on this. They will negotiate on individual
items, but, generally speaking, they are very firm on this increase. For the
roll-stocking dealers, you are not going to see prices this cheap for a couple
of years.”
He also noted, due to purchase volumes not being met on its Liz Claiborne
ceramic program, Carpet One and Armstrong have mutually agreed to give up the
right to sole distribution of the Armstrong ceramic line. “Let me be clear,”
Mishkin told members, “we did not give up our exclusive rights to the Liz
Claiborne brand. Its products will still be available as they are today,
however, we are allowing Armstrong to sell its ceramic line under its brand
through distribution to other specialty stores. Our agreement prohibits
Armstrong distributors from selling big boxes, home centers or any other buying
group.” Despite the news of price hikes, members were generally pleased with
what they were offered at the event. “It’s been a wonderful show. I really liked
some of the new laminate lines introduced by Mannington,” said John Fike of Fike
Bros.
Carpet One in Yeagertown, Pa. Concerning any impending price increases, like
many of the members, Fike echoed, “What we are going to have to do is go with
the punches, and do what we have to in order to be competitive against everybody
else. Everybody else is going to get the same price increases. I think we’ll do
fine.” “We’ve been buying a lot of product at the show,” said Steven Joss of The
Vertical Connection Carpet One in Columbia, Md., “especially wood. We’ve got
many hardwood flooring displays as we are installing a lot of it. It’s been
unbelievable with wood, as has laminate.” Regarding price increases, Joss
stated, “I don’t have a problem with it. When prices go back down, mine don’t.
Once they go up, they stay there. To me, it’s an advantage, not a disadvantage.”
“I have been doing this for 30 years,” said Roy Rock of Rock’s Carpet One in
Amory, Miss. “With today’s consumer, salaries have changed. She perceives, and
it is true, that prices project quality. So, she knows a quality product is
going to costs more. She is not sticker-shocked like us oldtimers are. Sometime
us retailers are our own worst enemy when it comes to pricing.” “We do a lot of
roll buys here and so we take advantage of many of the specials,” said Ron Joers
of Joers Floor Center Carpet One in Mishawaka, Ind., a member of Carpet One for
10 years. “In light of the price increase coming up I hit it pretty hard this
time. If you are a stocking dealer like I am, you have to make sure to insulate
yourself a little bit from the price increases because it’s tough to pass those
hikes along to apartment complexes or home builders.”
“It’s been a very good show with many introductions to the Lees program,”
said Julie Kerkochian Garleb of United Carpet One in Fresno, Calif. “The new
builder program is wonderful. It’s a full system from beginning to end featuring
good level upgrades, good hard surface products. It’s very easy for us to show
to our builders. “With hard surfaces being our highest growth area and one of
our concern areas,” she added, “Carpet One has done really well with what it’s
brought us. Good price points, good warranties, good, well-rounded selection.
Being from California, many of the national programs have not fit our niche.
This time, most of them have been great.”