Features

NFA meets to share ideas, strategies & solutions

Monday, March 28, 2022

[Vail, Colo.] The National Floorcovering Alliance’s (NFA) Spring Meeting held here was energized with vibrant conversation, tailored programs and, of course, the special camaraderie shared among NFA members and their key vendors.

“I like how we approached this meeting. All members sharing. The theme of the whole conference today was more dialogue with membership. We had a lot of good discussion today,” offered Dave Chambers of Nebraska Furniture Mart (NFM) and an NFA board member.

Following the group’s full member meeting, FCW met with the board — Jason McSwain, McSwain Carpet & Floors; Larry Flick, The Floor Store; Deb DeGraaf, DeGraaf Interiors; Raffi Sarmazian, Sarmazian Bros.; Eric Mondragon, RC Willey Home Furnishings; NFM’s Chambers; and, Dan Mandel, Sterling Carpet & Flooring — to talk about ideas shared at the meeting and how they were addressing the continuing price increases and labor shortages as well as inflation and the war in Ukraine.

These retailers reported that over the last couple of weeks, traffic has slowed slightly in the stores — a product of both inflation and the war in Ukraine.

“The stock market has been horrendous for the last several weeks,” pointed out Flick. “Between inflation, the war. The consumer confidence over the last few weeks is not where it was.”

Added Mondragon, “We have a lot more reasons for consumers to shop in our stores and we see traffic levels coming down a bit. We see this with natural catastrophes,” he said, explaining, “Some feel guilty, a stage of the crisis. At some point, we will trend back to normality. But right now, we are in early stages of the consumer feeling guilty spending money so they are holding off a bit.”

And, said Chambers, “They are willing to take a step back. They will still update their home but hold on to their money now.”

Solid Selling Practices

One topic board members said was a challenge was the RSA and getting them to embrace higher margins and create value at the upper end, particularly with the constant price increases across all categories.

“It’s getting the RSA used to price increases,” explained Mondragon. “These price increases are coming so fast and furious. They struggle a little bit with now creating value in the upper end price points. That’s the struggle. Getting them confident in selling a price. Selling the whole job.”

Flick revealed that he has increased stock levels by 50 percent but the challenge for him, he said, is “convincing salespeople that our 50 percent margin is someone else’s 30 percent. We give flexibility to sell the margin they want to but also realizing that when they quote 50 percent and the guy down the street is selling at 30 percent, we are still less.”

DeGraaf agreed that it is about the RSA’s confidence. “We have levels that they can work within. A few salespeople give cash and carry price. They go right to that price.”

Sarmazian added, “We have three tiers and are tweaking the tiers to give less of a discount.”

Lessons Learned

The pandemic has had lasting and, in some cases, positive effects on these retailers. One area, DeGraaf noted, was around technology, software platforms, QR tags and digital tags. “They help you be more efficient,” she said.

Technology indeed is an area where the NFA members reveal their processes and successes. “Everybody has a new application for it. We are using QR codes on our tags to link to our website,” shared Chambers.

DeGraaf said in her business they are continuing to use Zoom.

“We are being more efficient,” noted Mandel. “With business conditions today, with price increases and freight costs, the mix of ideas we get from all over country to take back to our stores [is invaluable],” he said, noting that this sharing extends to other challenges such as employee retention and labor shortages.

Sarmazian told FCW that he too is experiencing difficulty hiring RSAs, particularly in paying an attractive rate to new employees while maintaining equity among the staff.

One way these retailers are addressing hiring and retaining employees is what Mondragon called “hidden paychecks.” He explained, “Not increasing wages but shorten hours, work from home if the job allows. We’re a lot more flexible now. We want them to be happy.

Sarmazian too found ways outside of pay to keep his team happy. “We shortened business hours since COVID and it has created a better work/life balance. That has value. That is a non-monetary way to make it more attractive.”

The pandemic also allowed for a deeper insight into a business, said Mandel. “We learned about our employees over the last two years and how valuable they are to the backbone of our company. The hours they were working — it was eye-opening.”

Offered Flick, “We are allowing employees to work from home. That was never the case before COVID. And we buy lunch for the corporate staff three days a week as a show of appreciation.”

The power of the group, though, rests on the sharing of best practices. Here in Vail, small breakout sessions were conducted where members continued to learn from each other and lean on each other. Board members also said that it was during the difficult days of the pandemic when they looked to fellow members the most.

“I realized how important the NFA is and that I can pick up the phone and talk to Jason (McSwain), for example,” shared Mandel.

The pandemic also changed perception and even execution. “Everybody here is great at strategy creation and execution,” noted Chambers. “The pandemic forced us to accelerate and make us comfortable with accelerating [strategy]. We proved to ourselves that we can do things much faster.”

Added Mondragon, “We’ve embraced change.”

Meeting Minutes

One of the hallmarks of the NFA has been its early adoption of new ideas, strategies and products. And, it continues to diversify the suppliers on the vendor floor beyond traditional product.

“Diversity has been a member desire,” said McSwain. “Others continue to do research and bring information ahead of the meeting to make the most of that time. Even if your website is designed by someone else, you learn things, different formulas. And vendors like it because they reach more eyeballs.”

DeGraaf pointed out that the show floor reflects the scope of their businesses. “There are so many facets to our business that makes us successful in our markets besides product,” she explained. “The benefit [to NFA] is networking, raising the bar and supporting things like technology — all of those facets.”

Chambers said that at the breakouts, there was even discussion about warehouse racking. “It can’t just be about product,” he said. “We continue to try to push the NFA’s leadership in the industry. We want to bring more of that to our group.”

Supply Side

Vendors bring it to Vail

[Vail, Colo.] Vendors here at the National Floorcovering Alliance’s (NFA) Spring Meeting brought their A-Game, talking frankly about challenges while developing and offering solutions to meet these retailers’ needs.

Product innovations included new grout and beveled edge technology and longer planks for hard surface as well as unique constructions. Patterned carpet stood out along with rugs that are made for indoors and outdoors.

Outdoor opportunities were showcased here along with researched-based trend stories. Nature-inspired warm tones reigned as well.

Laminate is clearly making a comeback with its Made in the U.S.A. story and realistic visuals. Here, companies such as AHF showcased new introductions along with their SPC offerings.

Technology too took a front seat with Mobile Marketing and Roomvo present. These retailers are on top of creating a better and more streamlined consumer journey and companies such as Daltile are onboard with these platforms helping retailers create seamless consumer engagement.

Mark Clayton, Phenix, shows the company’s PetPlus featuring Microban technology.

The CALI team — Doug Jackson, Chanel Timbrook Clifford and Bob Fish make a statement on the show floor. Here the team was prepped to talk about its popular Longboards and Legends collections and its new outdoor offerings which include indoor/outdoor rugs, decking and turf.

Kelly Oberschlake and Trey Thames were part of the Mohawk team here to talk about the company’s Master Brands Mohawk, Karastan and Pergo.

MSI’s Emily Holle reveals the five trends driving flooring today. She also revealed the indoor/outdoor display that makes a “Seamless Sanctuary” easy by pairing pavers with porcelain and pavers with LVG.

Along with its hand-surged indoor/outdoor rugs, Stanton showed its Decorative Waterproof Flooring to NFM’s Dave Chambers.

Dream Weaver (Engineered Floors) featured, among other products, three new styles in its DW Select collection featuring its new tufting technology.

Here, president Jason Surratt talks NFA members through its solution dyed polyester “bread and butter” line as well as new additions to its ProGen line.

Shaw showed the latest from its three residential brands — Shaw Floors, COREtec and Anderson Tuftex (A/T) — as well as a new Main Street Commercial suitcase that features a carpet tile, broadloom and resilient flooring. COREtec showed three platforms to support NFA retailers and a new integrated bevel. “New innovation is going to start in COREtec,” noted Shaw’s Mark Sutton. A/T wood introduced a unique construction called Joinery featuring a distinct design element while A/T soft surface included the company's new Pet Perfect program.

Karndean showed its design prowess and flexibility here with a chevron in both gluedown and rigid core.

Emser debuted its matt and polished marble looks in this new display along with a line of Designer Grouts for its Euphoria subway tiles.

Republic Floor’s Efi Eylor talks to NFA members about new products including its popular SPC.

Mannington’s Jay Kopelsohn shows off the company’s Dealers’ Choice (FCW’s voice of the retailer award) winning CraftedEdge Technology on its SPC.

Armstrong’s Betty Walden explains the new NFA exclusive QR code for samples that bring the customer right to the retailer’s site powered by Roomvo who was also present at the vendor/member meeting.

The Dixie Group had a lot to talk about including TruCor Prime Pinnacle, a 90-inch log plank — a step up from XXL that will launch later this year — as well its Decorative Division products pictured here. Noted Len Andolini, “We are very. Committed to pattern. And all can be fabricated for rugs.”

Happy Feet’s Nick Johnson and Dave Snedeker show off three new SPC products including Mustang planks shown here.

Mobile Marketing’s Carole Cross works with some 60 percent to NFA members on their websites which allow retailers to capture valuable data on customers, ecommerce and change of status, for example.