The first quarter of 2023 has been dynamic. FCW spent much of this time on the road attending conventions, meetings, retail stores and more. We traveled more than I ever remember — even in pre-pandemic times. That pace is at once both exhilarating and exhausting.
New products, programs and strategies were deployed. And it was wonderful to reconnect with our friends, partners and readers. All of this happened as inflation was on the rise and there was a sense of caution for what the year may bring.
Indeed, 2023 has been complicated. In part because of continued headwinds — housing inventory, interest rates and a competitive landscape — but also because opportunities were emerging requiring suppliers and retailers alike to invest and innovate.
At the Alliance Flooring convention in Austin in March, Shaw’s Scott Sandlin told members, “Interest rates, competitive landscape — there are always going to be headwinds. It’s important to acknowledge and plan for it,” he said. “The good news is, it’s not going to dictate our success. The business is there.”
He contended that there is money out there but that the flooring industry is losing to other building products — everything from HVAC to windows. Sandlin also pointed to opportunities including those beyond the interior of the home by providing products for homeowners who are continuing to create and enjoy outdoor spaces.
In addition to the consumer research Shaw has conducted, last month investment bank ROTH MKM released its 2023 Millennial Survey, much of it reinforcing what Sandlin shared. It’s a great read. Interesting stats include that over the last 12 months, 45 percent of Millennials have started purchasing more private label goods in place of branded ones.
Health, wellness and the environment are a priority — everything from what they consume to what they use such as reusable water bottles. Your sustainability story matters to them. And convenience and immediate gratification are also influencers.
The report also said that “Millennial consumers are still willing to spend on innovative brands, products and services that tailor offerings to meet their unique needs.” Well, floor covering has that in spades — these stories will resonate with this consumer cohort.
It’s also a time to invest in your business — don’t go dark in the face of uncertain times. In our first quarter travels, we’ve heard forecasters such as ITR Economics put things into perspective and the U.S. has particularly favorable demographics for a growing economy. Get your house in order, but also do the things necessary to prepare for the future and emerging opportunities.
The Alliance Flooring convention marked the first time next gen leaders Ryan Dunn and Kevin Logue were at the helm. And kudos to them for building a diverse team of talent and delivering cutting-edge ideas.
Having a room visualizer today is almost a given now — it is imperative to have one on your site to engage the consumer during the online portion of the shopping journey. But what if you had technology that actually guided the consumer — whether online or in store — through the process by asking those critical qualifying questions and eventually suggesting products on your selling floor to fill that need?
That’s just what Alliance did with its Interactive Design Consultant (IDC) technology in partnership with media company Forum Film. Available likely in September, IDC piqued the interest of attendees because it not only will engage the consumer online but addresses challenges with selling floor talent and training.
When we sat down with Ryan and Kevin, we asked them what they look to each other for, especially as they take the lead of their fathers’ business. Ryan looks to Kevin for grounding and the details and execution while Kevin looks to Ryan to see the possibilities and that 75,000 foot view of what could be. We look forward to seeing where they take that retail group next.
What are you doing to prepare for the future? What is your next opportunity? Stay safe. Stay inspired.