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

NAFCD Urges Members To Support Habitat Stores   Full Article
Chicago, IL, Nov. 11, 2014 -- The North American Association of Floor Covering Distributors Association is urging its members to support Habitat for Humanity's ReStores by donating materials and products.

Former Mannington VP Hollinger Dies   Full Article
Kennett Square, PA, Nov. 11, 2014 -- Mark A. Hollinger, age 58, a long-time Mannington Mills employee, died Nov. 5 after a year long battle with glioblastoma multiforme.

Desso Using Water Company Waste in Carpet Tile   Full Article
Waalwijk, The Netherlands, Nov. 11, 2014 -- Carpet company Desso said it is using chalk from local water companies to make its products.

Investment Adviser Reduces Stake in Armstrong   Full Article
Boston, MA, Nov. 11, 2014 -- Wellington Management Company of Boston has reduced its stake in Armstrong World Industries to less than 5% of the firm.

Mr. David's Founders Named Persons of Year   Full Article
Chicago, IL, Nov. 11, 2014 -- David and Leonard Zmijewski, the founders of Mr. David's Flooring International, have been named Persons of the Year by the Chicago Floor Covering Association.

Dover Rug & Home Wins Philanthropy Award   Full Article
Natick, MA, Nov. 10, 2014 -- Dover Rug & Home said it is the recipient of the 2014 Community Excellence Award, given by the Family Business Association of Massachusetts.

More Home Refinancers Taking Cash at Closing   Full Article
Washington, DC, Nov. 10, 2014 -- Borrowers cashed out an estimated $8 billion in home equity through refinancing of conventional mortgages in the third quarter, according to Freddie Mac’s quarterly refinancing report.

Berkshire Hathaway Reports Lower Sales and Earnings for Shaw   Full Article
Omaha, NE, Nov. 10, 2014 -- Berkshire Hathaway reported third quarter net earnings of $4.6 billion, or $2,811 a Class A share, compared with $5 billion, or $3,074 a share, a year earlier.

Existing Home Sales Expected To Pick Up Next Year   Full Article
Washington, DC, Nov. 10, 2014 -- Sales of previously-owned homes next year may hit the fastest pace since 2006, according to the National Association of Realtors.

Former Starnet Chairman Wins Mayoral Election   Full Article
Point Pleasant, NJ, Nov. 7, 2014 -- Former Starnet chairman Bob Sabosik won his bid for mayor in Tuesday's elections in Point Pleasant.

Mohawk CEO Lorberbaum Discusses Firm's Growth   Full Article
Chattanooga, TN, Nov. 7, 2014 -- Mohawk Industries CEO Jeff Lorberbaum told the Chattanooga Rotary Club that his firm is investing $500 million in its existing businesses in a bet on an improving economy.

Economy Adds 214K Jobs, Unemployment Falls   Full Article
Washington, DC, Nov. 7, 2014 -- Employers added 214,000 jobs in October and the unemployment rate fell again, the Labor Department said.

Attendance at Cersaie Rises This Year   Full Article
Bologna, Italy, Nov. 7, 2014 -- Attendance at Cersaie 2014, the international exhibition of ceramic tile and bathroom furnishings held in Bologna in September, once again topped 100,000 visits, according to organizers.

Builders More Confident in Senior Housing Market   Full Article
Washington, DC, Nov. 7, 2014 -- Builder confidence in the 55+ housing market was up again in the third quarter, according to the latest release of NAHB’s 55+ Housing Market Index.

Housing Markets Improving at a Gradual Pace   Full Article
Washington, DC, Nov. 6, 2014 -- Markets in 59 of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the third quarter.

Planned Job Cuts Surge in October   Full Article
Chicago, IL, Nov. 6, 2014 -- Planned job cuts jumped 68% in October to the second-highest total this year, according to outplacement consultancy Challenger, Gray & Christmas.

Initial Jobless Claims Fall Again   Full Article
Washington, DC, Nov. 6, 2014 -- Initial claims for unemployment benefits fell by 10,000 to 278,000 in the week ended Nov. 1, the Labor Department said

Grosser Named Tile Person of Year   Full Article
San Antonio, TX, Nov. 6, 2014 -- Tile Council of North America presented its Tile Person of the Year award to Donato Grosser at the Total Solutions Plus event.

NWFA Renews Agreement With Wildlife Fund   Full Article
St. Louis, MO, Nov. 6, 2014 -- The National Wood Flooring Association said it has renewed its Memorandum of Understanding with the World Wildlife Fund.

Tarkett Hosts Second Sustainability Summit   Full Article
Chagrin Falls, OH, Nov. 6, 2014 -- Tarkett recently hosted its second annual Sustainability Summit in Cleveland, Ohio.