By Matthew Spieler
PALM COAST, FLA.—With more than 100 of its most dedicated retailers in attendance, Shaw Industries rolled out a number of initiatives and programs designed to create greater “synergies” throughout the selling chain.

The second Shaw Design Center (SDC) aligned network convention was not about offering those in attendance new products. Rather, it centered on two areas to help businesses be ready for when economic conditions improve: sharing and learning.

SDC members are the elite core of the Shaw’s Flooring Alliof ance (SFA) network and currently make up 140 retailers representing 165 locations in the U.S. and Canada. “These are more than our best customers; they’re our best friends,” said Randy Merritt, Shaw’s president. “This is a group that is not about the total number of dealers, but rather it’s about those who believe in what we are doing and that we can help them be more profitable.”

With that, the company rolled out a range of services and programs exclusive to the group as well as a roadmap on Shaw’s plans for the SDC network. In addition, numerous breakout sessions were held in which the members were given the platform to do more than discuss their best practices. Rather, it was an opportunity for them to tell Shaw’s top executives what the mill could do better and what more they would like to see from the SDC program to bring even more value.

Included in the new offerings was a comprehensive financial benchmarking initiative designed to allow members of similar size and ilk to compare numerous areas of their business to see where improvements can be made to help add money to the bottom line; a new store concept created with the help of member input; an in-store consumer credit kiosk, and a number of other programs created to help drive traffic into member stores.

Exclusive territories

And, for the first time in Shaw’s history, said Scott Humphrey, SFA’s marketing manager, the company is granting exclusive selling territories to SDC members. This contractual agreement “adds value” to a member’s business. “SDC is the cream of the crop, and it’s time to treat you like you want.”

Considering that 70% of members have been in business more than 10 years with the average of the group being around 25 years, Ken Jackson, Shaw’s CFO, noted, “The greatest compliment to us is to have our name alongside yours.” Those in attendance not only liked what they heard, but what they saw as well.

Gary Cissell, director of flooring for the Nebraska Furniture Mart in Omaha, Neb., which joined SDC in November, called the three-day meeting “one of the more beneficial ones I’ve been to in recent history. It was very informative in a variety of areas.”

He called the new store concept “fabulous,” noting the Visions color wall was a highlight. “We will be figuring out a way to incorporate it into our show floor.” The consumer credit kiosk, Cissell added, is something “we are working with Shaw to integrate into our system.”

Though Nebraska Furniture Mart is much larger than the other SDC members, he noted all members are highly professional and some of the best in the business. “And from the networking that took place, I gained a few ideas from some of the members; things we can tweak to make our business better.”

Mark Woods of Ideal Floorcovering in East Falmouth, Mass., who was one of the first to convert to the SDC program three years ago, said this meeting showed how much “Shaw is really listening to us and the message we are bringing from our customers.”

Selling concept a ‘home run’

He pointed to the new store concept as an example. “It’s very smart, very sleek in appearance. It’s not flashy but creates a very favorable shopping experience for consumers. The color wall concept is something we started with them years ago and have gone through many renderings since. The one they introduced here is a home run.”

Humphrey said the store concept was the result of three years of extensive retail environment research including partnering with a design group with expertise outside of the flooring industry. “We are confident this is the right solution and will be the most powerful selling environment in the flooring industry.”

As with Cissell, Tony Sicilia of Floor and Home in Westwood, N.J., found the consumer credit kiosk “to be a home run.” The reason? Like a great many retailers in the country, especially those that are located in small towns, he personally knows many of his potential customers and it is awkward having to ask them for their financial information. Add to that feeling if the person is denied credit or not given enough to purchase the floor covering of her choice. “From a comfort and privacy point of view having the kiosk is a can’t miss.”

Another winner to take from the convention was Shaw’s use and commitment to the Internet. One of its latest Web-based programs allows for members to create virtual rooms for the consumer. This tool allows her to bring a photo into the store, upload it and then see how various products will look in her own room.

Always thinking ahead, Sicilia said he was going to set up a special “station” in the store, complete with some of the Kathy Ireland-branded furniture he carries and the consumer credit kiosk. “This will give her a relaxing place to find the floor that’s just right for her and then instantly apply for the necessary credit.”
To ensure she has a pleasant shopping experience, his store already has set up an area for kids to play and a café for customers to get refreshments.

Beyond the physical programs, Woods noted Shaw is showing its commitment to SDC and bringing added value with such things as the financial benchmarking initiative and the open sharing of information. “When have you seen top dealers throughout the country brought in and not only share financial information, but share it with the CFO of a mill? That truly lends to the message in how sincere Shaw is about the program.”

Throughout the convention Shaw executives stressed a desire to help the members be successful over the long haul, saying it was in the best interest of both parties. “One clear and consistent message I kept hearing from Shaw at this convention was we are no good if we can’t help you better,” Woods said. “From what they did and presented at this convention, it seems to me they are sincere.”