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Lew Migliore, the Industry's Troubleshooter and President of LGM & Associates Technical Flooring Services. LGM specializes in the practice of consulting on and trouble shooting all flooring related complaints, problems, and performance issues having experts in every category as well as related educational services.
| 2/19/2007 3:43:06 PM  Big box threat: Real or perceived?
You're inundated with so much hype about the threat to the flooring dealer it's hard to know if it is real or perceived.
I'm tired of hearing how big Home Depot and Lowe's are getting in flooring and how they may take over retail sales. Don't believe it, it's not going to happen. That may sound like a bold statement but it's true and here's why.
Any time you go into one of these stores you're hard pressed to find help. Customer service is virtually nonexistent.
When it comes to floor covering this is the kiss of death. A consumer goes to look at flooring in a location that is a destination. She wants a store conducive to picking a product that will beautify her home, and these warehouse facilities just aren't the place for that. If you do find someone to help, his knowledge can be sorely limited. If you're lucky, you may find someone who knows a little about what they're talking about.
I have split visits to both Home Depot and Lowe's simply because someone in a particular department actually knows what they're talking about. Many times the employee doesn't know or even gets surly. And they don't always have what you're looking for. This goes for floor covering as well. The selection is minimal compared to a full-service flooring retailer. A full-service store specializes in floor covering and most know what they're talking about. Plus, the full-service store is loaded with the latest products and there's much more to see than in a big box.
What then is their advantage? There really isn't one. What they have going is advertising- and a lot of it. If you put your message out to enough people you're bound to snag a lot of them. After they get there, however, and see there is not a large selection, no one to help and little product knowledge, you have a chance at them. The closer you are to a big box, the better your chances of making a sale.
I know dealers who have stores close to a Home Depot, and their business has been up since the box opened. I've heard stories of retailers opening close to a big box just to take advantage of disappointed consumers. And I've heard stories about dealers whose stores adjoin the big box parking lot and they've reconfigured the main entrance to take advantage of the situation. By the sheer number of stores and the amount of marketing and advertising done they are going to produce lots of volume, but they can't compete with you on service and selection. That's the advantage you must realize and capitalize on.
Recent Christmas shopping sales statistics revealed some very interesting results: Only 18% of shoppers bought for price; the majority bought due to availability and return policy. The largest, most expensive stores had the highest volumes and increases in sales. Why? Service and quality product. WalMart did not do as well as Neiman Marcus proportionally. If you have a high-end store with a great atmosphere, knowledgeable sales staff, a designer or two, excellent selection, quality products and an understanding of the female consumer and you market the place well, you'll have a hit.
There's been mention of a WalMart threat to the flooring dealer. Think about this: Do you think WalMart could ever do what you do? Never happen. It's not in its business model, philosophy or mindset. It is not a service center and it doesn't sell home furnishings other than small items. Forget about it getting into your business. Anyone who continues to scare you with the mention of this is out of touch with reality.
Edited by Admin 1/18/2008 10:34:59 AM
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Transmitted: 5/11/2026 11:54:02 PM Powered by FloorBiz Forums
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