Focus 100 Retail

By Darius Helm and Kemp Harr

 

With the housing decline now officially into its sixth year—the market turned in August 2006—flooring retailers and contractors have by now firmly readjusted their expectations. For many, this slowdown has brought wisdom and deepened understanding of the business. Those who are growing and taking share have successfully retooled their sales strategies, broadened their client base and expanded their product offering. 

The last couple of years have seen some significant attrition among retailers and contractors in the residential market. In the end, many businesses that had managed to hold on for the first two or three years, fighting for their slice of a shrinking pie, were unable to maneuver into more favorable positions, overrun by their balance sheets in a climate greedy for debt and stingy on credit. Some were acquired by larger players, while others filed Chapter 7 or 11. By some estimates, the number of brick and mortar independent retailers has fallen from 14,400 to about 11,000 over the last five years. 

This year’s Top 100 list reflects growth by many retailers, largely through acquisitions or share gains in markets where competitors went under. Others, through shrewd diversification or sheer willpower, posted organic growth. Large numbers of retailers and contractors have successfully targeted parts of the commercial market, or have gained a foothold in the low margin, high volume multi-family market.

The overall flooring market will probably be up close to 3% this year, with gains in the commercial sector and a slight loss in the residential sector. The good news on the residential side is that the market has pretty much stopped falling and is as close to stable as it’s been in five years—cold comfort to retailers who must spend long hours turning over rocks and scouring the bottom to eke out every square foot of flooring opportunity.

For retailers across broad swathes of the nation, a brutal winter hampered sales through the first half of the year, and those regions by and large reported a turning of the tide around the month of August—and since then, business has been stronger. Others reported that business has been up and down all year long. And nobody is willing to prognosticate on what 2012 will bring, though several retailers pointed out that election years can have a stifling effect on sales, in part because of how political discourse tends to focus on all the ways things are going wrong in the country—making a nervous populace even more nervous.

Unemployment arguably has the largest impact on the vitality of the residential market, though consumer confidence also affects spending habits. Nationally, unemployment stands at about 9.1%, down marginally from 9.6% this time last year. However, there are huge disparities between the states. For instance, unemployment stands at 10.7% in Florida, 11.1% in South Carolina and Washington, D.C., 11.2% in Michigan, 12.1% in California and a whopping 13.4% in Nevada. By and large, retailers in those states had a hard time making gains this year—except for the notable exceptions gaining share because competitors went under.

For the complete story of the Top 100 Retailers, see the November 2011 issue of Floor Focus Magazine.



Other Archived Articles

Unemployment Falls but August Job Gains Muted   Full Article
Washington, DC, Sept. 5, 2014 -- Employers in the U.S. added 142,000 jobs in August, the lowest monthly total of the year, according to the Labor Department.

Horizon Floors Signs Denver Hardwoods   Full Article
New York, NY, Sept. 5, 2014 -- Horizon Floors has a distribution agreement with Denver Hardwoods.

Invista Surfaces Makes Executive Promotions   Full Article
Kennesaw, GA, Sept. 5, 2014 -- Invista Surfaces has promoted Maggie Bidlingmaier to vice president of its residential business.

Gerflor Becomes Starnet Approved Vendor   Full Article
Chicago, IL, Sept. 5, 2014 -- Resilient flooring firm Gerflor said it has attained approved vendor status in Starnet.

USG Signs Private Label Agreement With Powerhold   Full Article
Chicago, IL, Sept. 5, 2014 -- USG Corporation said it has entered a private-label agreement with Powerhold, the largest flooring accessories distributor network in the country.

Shaw Ranked Fourth on E-learning List   Full Article
Dalton, GA. Sept. 5, 2014 -- Shaw Industries ranked fourth on E-learning! magazine’s Learning! 100.

H.B. Fuller Acquires ProSpec Construction Products   Full Article
St. Paul, MN, Sept. 4, 2014 -- H.B. Fuller Company said it has acquired ProSpec Construction Products, a provider of tile and stone installation products.

Builder Hovnanian Says Income Doubled   Full Article
Red Bank, NJ, Sept. 4, 2014 -- Homebuilder Hovnanian Enterprises reported third quarter net income of $17.1 million, or $0.11 a share, up from $8.5 million, or $0.06 a share, a year earlier.

Services Sector Expands at Faster Pace in August   Full Article
Tempe, AZ, Sept. 4, 2014 -- Growth in the services sector of the economy accelerated in August to the highest level since 2005, according to the Institute for Supply Management.

Initial Jobless Claims Still Near Eight-Year Low   Full Article
Washington, DC, Sept. 4, 2014 -- Initial claims for unemployment benefits last week ticked up although claims remain near an eight-year bottom.

Private Sector Job Growth Remains Steady   Full Article
Roseland, NJ, Sept. 4, 2014 -- Private sector employment increased by 204,000 jobs from July to August, according to the August ADP National Employment Report.

CRI's Mendez Named SGAC Board President   Full Article
Dalton, GA, Sept. 4, 2014 -- Carpet and Rug Institute vice president for government relations Jennifer Mendez was named president of the board of directors of the State Government Affairs Council.

Royal Adhesives Acquires Toronto-Based Chemque   Full Article
South Bend, IN, Sept. 4, 2014 -- Royal Adhesives & Sealants said that its subsidiary Royal Adhesives & Sealants Canada will acquire polyurethane foams and adhesives maker Chemque.

Domotex Bringing Back Innovations Event   Full Article
Hannover, Germany, Sept. 3, 2014 -- Domotex is bringing back its Innovations@Domotex for a second season next year.

Factory Orders Increase by Record Amount   Full Article
Washington, DC, Sept. 3, 2014 -- Factory orders rose by a record amount in July, mostly on the strength of commercial aircraft.

Shaw Moves Up on Selling Power List   Full Article
Dalton, GA, Sept. 3, 2014 -- Shaw Industries said it has been ranked no. 13 and is the only flooring manufacturer on the latest Selling Power 50 Best Companies to Sell For list.

Floor Focus Plans to Honor Young Professionals   Full Article
Chattanooga, TN, Sept. 3, 2014 -- Floor Focus Magazine plans to recognize young professionals in the flooring industry who are under 40 years old.

Bona AB Wins Swedish Export Award   Full Article
Aurora, CO, Sept. 3, 2014 -- Bona AB said it has received the Export Hermes 2014 Award.

Rug Market Schedules Set Through 2018   Full Article
Atlanta, GA, Sept. 3, 2014 -- AmericasMart has set the dates for its January and July markets, including its rug markets, through 2018.

Toll Brothers' Profit, Revenue Surge   Full Article
Horsham, PA, Sept. 3, 2014 -- Luxury homebuilder Toll Brothers Inc. reported third quarter net income of $97.7 million, or $0.53 a share, up from $46.6 million, or $0.26 a share, a year ago.