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Variety equals volume for many floor covering retailers
Article Number: 5894
 
There are more than 30,000 locations selling laminates today, including big boxes and price clubs, so there are many places where people can shop. Consumer research indicates flooring buyers want to look, compare and see differentiation between products. That’s why retailers are advised to display a wide assortment of top-selling styles and colors, industry members say.

How many laminate flooring brands should a store merchandise? The number has grown considerably larger over the years due to the proliferation of new players, products and imports. The reasoning is simple: The more lines a retailer carries, the less chance a shopper will visit other stores.

For example, Craig’s Carpet in Dalton shows about seven brands on A-Frame racks and up to 15 on pallets. “You can show off different styles,” Steve Brock, a member of the store’s sales team, explained. “We can show 6 to 8 square feet of laminate flooring in three to four boards in each color.”

On the flip side, Ted Smith Floor Products, Reading, Pa., displays only two laminate brands on pallets located in a 40 x 60-foot area inside the store. “We are ‘narrow and deep’ only in the wood look, no tiles,” owner Jeff Nigrelli explained. “The wood look is what has worked best for us.”

How do dealers choose which type of laminates to sell? Marketers suggest each store maintains a sufficient number of top-selling styles and colors. But demographics play an important part in determining a product mix as well. For instance, if a store caters to high-end customers, then the product selection should reflect styles and price points that appeal to this clientele.

What are the key price points? The extensive selection of low-end products carried by big box stores may discourage specialty flooring dealers from selling them. Nonetheless, experts advise retailers not to avoid the low-end business entirely. A significant amount of volume moves at the low price points. And it is also important for retailers to carry beginning price points to show consumers the differences between lower-quality and higher-end goods.

“Shop the competition and make sure recognizable manufacturer brands like Armstrong, Pergo, Mannington and Quick•Step are not overpriced on your floor, because the consumer will perceive that you are overpriced on everything else,” said Olga Robertson, president, FCA Network, the offshoot of Floor Covering Associates in Chicago. “You need to get aggressive on the opening price point and then make it up on the trade-ups.”

While value and durability are two major selling points for laminates, almost equally important is color and design, according to consumer research. These preferences vary by region. If retailers are unsure about the looks and colors popular in their marketing territory, they may want to investigate selections offered by competitors. Dealers can also speak to their suppliers, who can provide them with information pertaining to the company’s best sellers as well as the top-selling styles in their area.

Laminates are merchandised in everything from racks and specially designed display systems to pallets. For instance, Nebraska Furniture Mart in Omaha merchandises laminates in a dedicated, finished area. Display racks vary in size; for instance, stocking colors are shown along a wall on 2 x 3-foot boards while a two-tier, 4-foot-high unit contains small samples. The Mart carries a number of brands, covering every style and price point.

“The in-stock wall is highlighted, so when you walk in the area your eye is drawn to it,” explained Gary Cissell, director of flooring. “There customers can find the more popular laminate selections we have in stock.”

Floor Covering Associates dedicates about 20% of its retail floor space to laminates, Robertson said. “We merchandise the manufacturer brands in our showroom, but anything that we stock is merchandised in a 24 x 24-inch sample on a stair step display,” she said. “We merchandise all of our stock products in a larger format in the front of the store, as these are the best values in each category.”

In a nutshell, successful retailers concur that merchandising units should be appealing, customer friendly and allow shoppers to touch, feel and see what they are contemplating to buy. If laminates are shown properly, the display essentially serves as a silent salesperson.



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Date
9/6/2010 4:44:20 AM
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