Features

NFA Networks Up North

Monday, March 18, 2024

[Banff, Alberta, Canada] FCW spent time here in Banff to hear about the start of 2024 from board members of the National Floorcovering Alliance (NFA) — where they are winning and the initiatives being taken to succeed in their markets now and into the future. Among the strategies employed are exclusive products, creative advertising and diverse offerings.

These board members said the year has started unpredictable with highs and lows. “It has been inconsistent,” reported Dave Chambers, Nebraska Furniture Mart (NFM). “We’ve had great weeks — it has been hit or miss.”

ICC Floors’ Jason Waggoner added that the start of 2024 has been a struggle. But he and other NFA board members revealed that there are places where they are winning in their markets.

“We are winning with exclusive product,” said Hadinger Flooring’s Susan Hadinger adding, “We are down from our biggest year.”

For most of these dealers, being down or flat at the start of the year is taken with the understanding it comes after peak years following the start of the pandemic. And, diversity in product and markets served has helped stabilize business thus far.

Macco’s Scott Browne said they are up because of the retailer’s balance of retail and commercial business. “It keeps us pretty clean and better than expected, better than last year,” he said.

Waggoner also pointed to diversity of markets served as a way to manage shifts. “We are flat from last year. It’s shifting. The builders we work with had their first normal winter.” Another positive area, he said, “Our closing percentage is better and ticket average is up.”

Agreed Floortrends’ Jessica Arscott, “There is a big difference market to market and, it’s a geographic thing.”

Market Drivers

There are factors impacting the flooring business across different markets. One, said Chambers, “It is fairly expensive to get access to money. Equity is high but you can’t get to it. We need rates to come down.”

But, said Arscott, with stores in Canada, “There is going to be pent up demand in remodel.”

Ian Newton of Flooring 101 and NFA president added that when home sales are strong, retailers benefit from remodeling for both the move out and move in.

Winning Strategies

Newton shared that Flooring 101’s response to market conditions is to advertise more. And now, he added, “You get more for your money.”

Agreed Arscott, “There are a lot of sales for running ads.”

Browne too said Macco’s has never stopped advertising. “We have a reputation of branding our business. Customers are shopping more locations so we are driving private label or exclusives — exclusive pricing or styles.”

“We get creative with our promotions,” offered Chambers. “We entice the customer to get off the couch.”

Diversification in product offering also gives these retailers a boost in their markets. “Adjacent categories are winning — a market share grab in countertops, cabinets, fixturing and window treatments,” offered Chambers.

“We are officially in countertops,” shared Waggoner, noting that that business is ICC Countertops. “It was an asset purchase — employees, machinery. With the cabinet business, we really needed that. Our clientele has a lot of designers coming in so we are trying to add more and be a one-stop-shop,” he said, adding that the store will open rugs in May.

Newton noted that the hardwood market has been positive for Flooring 101. “It has grown a lot lately. In the high end.”

Chambers agreed, saying, “RSAs are asking for more higher end wood.”

Waggoner too is seeing growth in high end hardwood though carpet remains profitable.

“Carpet is king for profit,” noted Arscott. “But it is a small percentage of our mix.”

Jason McSwain at McSwain Carpet & Floors said he has looked at diversifying how he reaches the customer. “We have taken steps to go to the customer with shop-at-home.” And, he added, “In February we went to the big home and garden show. Analytics we got showed the two weekends paid dividends.”

Preparation is Everything

While the economy is currently soft, forecasters predict a more robust climate to come later this year and into 2025. These retailers said they are ready for the return of robust activity.

“Because of the last four years, we are prepared for a ramp up,” said Waggoner, adding that ICC is looking particularly at policy and procedure.

“We were forced in the last four years to improve efficiencies, policies, everything,” offered Browne. He said that the company is also more engaged with installation and has booths in its warehouse for training.

Waggoner too said ICC is focusing on installation and creating a culture and pay that makes the retailer a desirable place to work.

Culture indeed has been an area receiving attention from these elite retailers and that extends to vendors they work with as well. “We have a better relationship with those that are aligned with our culture,” explained Hadinger.

When it comes to vendors, Browne noted, “We look at the TM (territory manager) side and who you want to work with more.”

Pictured here are Scott Browne, Maccos; Ian Newton, Flooring 101, Jessica Arscott, Floortrends; Susan Hadinger, Hadingers; Jason McSwain, McSwain Carpet & Floors; Dave Chambers, NFM; and, Jason Waggoner, ICC Floors.