You’re inundated with so much hype about the threat to the retail floor covering dealer that it’s hard to know if the threat is actually real or perceived. Personally I get tired of hearing about how big Home Depot and Lowe’s are getting in floor covering and how they may well take over the stewardship of retail floor covering sales. Don’t believe it because 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 anyone to help you, even if you’re only there to buy a screwdriver. Customer service is virtually non-existent. You could wait a long time before anyone gets to help you with whatever it is you’re looking for. When it comes to floor covering this is the kiss of death. A consumer goes to look at floor covering in a location that is a destination. They want to see a store that is conducive to picking out a product that will beautify their home and these warehouse facilities just aren’t the place to do that. If you do find someone to help you their 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 the full service flooring retailer. A full service floor covering retail store specializes in floor covering and most know what they’re talking about. The full service floor covering store is full of the latest products and there’s much more to see and choose from than in a big box.
What then is their advantage? There really isn’t one. What they have going for them 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 that they really don’t have 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 are of making a sale. I know retail floor covering dealers who have stores close to a Home Depot and their business has been up since the big box opened. I’ve heard stories of retail floor covering dealers opening close to a big box just to take advantage of disappointed consumers. And I’ve heard stories about floor covering retailers whose stores adjoined the big box parking lot and they reconfigure the place to put the main entrance on the parking lot side to take advantage of the situation. By the sheer number of stores and the amount of marketing and advertising these places do they are going to produce a lot of volume but they can’t compete with you on service and selection and that’s the advantage you must realize you have. And you have to capitalize on it.
Recent Christmas Shopping sales statistics for retail stores revealed some very interesting results which may surprise you. Only 18% of shoppers bought for price, the majority bought due to availability of product and return policy. The largest, most expensive retail stores had the highest volumes and increases in sales – why? Service and quality product. Wal-Mart 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 Wal-Mart threat to the retail floor covering dealer. Think about this. Do you think Wal-Mart could ever do what you do? Never happen. It’s not in their business model, philosophy or mind set. They are not a service center and they don’t sell home furnishing other than small items. Forget about them getting into your business. Anyone who continues to scare you with the mention of this is out of touch with reality.
Author: Lewis G. Migliore
LGM and Associates – The Floorcovering Experts