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CCA Global groups continue to outpace industry, Carpet One means business in 2009
Article Number: 4066
 
DALLAS—“It’s always better when we’re together.” Words that rang true as Carpet One Floor & Home members looked back at a trying year in preparation for profit in 2009 during its recent winter convention here.

“Last year was a difficult one for everyone, but we outperformed the industry and took market share,” said Eric Demaree, president of Carpet One Floor & Home. “Fortunately we have the best, premier retailers in the industry, and collectively we can leverage things that small independents cannot—brands, pricing, technology, credit buy-downs and intellectual capital.”

Standing out in a down market, the cohesive Carpet One successfully increased membership in 2008, adding 43 new stores and 23 new members. And Demaree expects nothing less in the year ahead. “We believe we will do the same, if not better in 2009,” he said, noting the group actually turns down interested parties weekly that are not up to Carpet One’s standards. But, there is still room to grow. “We can probably fill in 150 markets without cannibalizing existing members.”

And, who better to attest to the benefits of being aligned with Carpet One than its own members? “Without Carpet One—the programs, the support of corporate staff and fellow members—we might not have continued in business over the last few years,” explained Beth Hughes of O’Briens Carpet One Floor & Home in Colorado Springs, Colo. “The programs to help us succeed, best practices, financing, warranties, marketing, products and rebates have made the difference.”

Cathy Buchanan of Independent Carpet One Floor & Home in Westland, Mich., agreed joining the group provides unique opportunities. “This is an opportunity to find new ways of doing business,” she said. “By ourselves—without the University, marketing, product and merchandising— we could not survive.”

So, what is the key to keeping a profitable, growing membership, especially during a dwindling economy? A strong focus on business leading to profitability and success, explained Demaree, which was exemplified at the Dallas meeting— Carpet One Means Business. “Our conventions are not designed to entertain. Our conventions are business,” he said. “We are not going to do anything that will not drive more business, close more sales or raise the average ticket.”

And, during a tough economic climate, the group adjusted its targets, zeroing in on just a few key areas. “We felt it was critical in this down market to concentrate on the minimal number of things that could dramatically impact our members’ businesses in three areas,” Demaree pointed out.

First, the group looked at marketing systems that drive more traffic, heavily weighted toward Web-based exposure. Second, a focus was placed on helping members close more sales by providing lower prices, significant consumer financing programs and incentives for sales professionals. And, third, Carpet One looked to help members raise their average ticket by enhancing programs such as its exclusive EverGuard stain treatment and adding value to proprietary brands.

“Significant planning went into this convention,” said Scott Walker of Walker’s Carpet One Floor & Home in Bellingham, Wash. “There was a keen recognition many in our industry were suffering financially and psychologically as a result of the virtual depression. Therefore, corporate set a realistic, yet positive tone to provide both hope and useful direction for the future. There was little fluff.”

Buchanan said the show was a continuation of the summer session and remained valuable and upbeat. “Our summer convention was based on driving more traffic, raising margins and closing more sales,” she recalled. “The winter ’09 meeting was an extension of this, which felt good. Let’s get to work, roll up our sleeves and get down to the nitty gritty.”

In line with that mentality, Demaree quoted a Herman Miller executive, “‘We cannot become what we need to be by remaining what we are.’ During this time, we need to understand our mission and purpose of business; to put words into action. All touch points must be aligned brick by brick.”

And, another touch point addressed at the meeting was product. Though Carpet One did not introduce any new products, it did cut the Liz Claiborne line and re- launch its Bigelow brand. “We had a tremendous relationship with Liz Claiborne for almost seven years, but as business conditions changed, the line was not performing to the level we both wanted,” Demaree explained. “So, effective April 1, we will be converting all the existing Liz displays and samples to our new, revamped Bigelow brand—Big heritage. Big style. Big value.”

The group also added to its Relax It’s Lees line, which will now qualify for its Green Select program. Several additions were also made to the Biltmore collection.

Members appreciated the succinct, specialized changes. “We need to get down to basics, clean up the mess, watch our cash flow and scale down but stay strong,” Buchanan said.

Walker agreed putting the focus on select, but relative practices and programs is what will differentiate Carpet One from the rest going forward. “The group is focused on initiatives that are most likely to enable members to survive and flourish in the face of all the challenges that exist today.”


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Date
1/20/2009 9:35:22 AM
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