www.floortrendsmag.com/articles/87989-resilient-hears-footsteps-retailers-say-demand-for-alternative-flooring-is-reshaping-the-category

Amtico
Jura Grey

Nafco's
Mirabello
For
generations resilient flooring has lived up to its name. Whether in a sheet or
tile format, products included in this wide ranging category have earned a
reputation as practical, fashionable and-as the name suggests-highly durable.
For many homeowners and builders, resilient has long been the No. 1 choice for
kitchens, bathrooms, basements and other areas where the floor could be expected
to take a beating. While resilient flooring still holds sway as a dominant area
of flooring, its position is being challenged as never before.

Retailers
and contractors participating in National Floor Trends’ exclusive survey on
resilient flooring told us the biggest challenge facing the category is the
growing demand for other types of flooring. The response reflects the advances
seen in hardwood, ceramic tile and even broadloom carpet. As manufacturers in
those areas have worked to allay concerns about long term performance in high
traffic areas, the resilient segment seems to be feeling the pressure. And
while “demand for alternative flooring” was by far the most frequent answer to a question about issues
impacting the resilient business, concern
about increased retail competition in the category and “eroding profit margins”
also were mentioned prominently.

About
half of those polled said they expected the resilient business to remain flat
throughout the remainder of the year, while about 30% forecast a dip in sales
and around 20% said they expected to see an increase. Those anticipating an
increase offered a wide variety of reasons ranging from “a better economy” to
“population growth.” Conversely, those bracing for a sales slump focused
largely on options that are drawing consumers away from resilient. “Everyone
wants wood flooring,” “increase in
ceramic business” and “more builders specify tile and wood” were among the
answers reflecting this sentiment.

But that does not mean retailers are soft on
resilient nor does it suggest consumers have soured on the category. About 63%
of the respondents said they often or always recommend resilient flooring to
their customers while 35% said they did so sometimes. Only 2% said they never
recommend the category. When asked what attributes drive a purchase,
reliability and quality topped the list followed by design and styling. Other factors
frequently mentioned were distributor support and customer request. Far less significant were sales rep support
and sales incentive plans and rebates. Retailers also report that they have a
good deal of influence over what type of resilient a consumer buys. About 25%
of the respondents said most of their customers purchase a floor covering that
differs from what the shopper initially had in mind.

Those
interacting with consumers told us shoppers generally give resilient high marks
for style, selection and quality. Still, the survey said consumers in a
flooring showroom are most impressed with maintenance issues related to the
category. Thirty-seven percent of the respondents agreed that consumers
perceive the category to be excellent in the area of cleaning and upkeep. Style
and selection did not rate nearly as high.
Asked to identify their No. 1 selling resilient
flooring brand, Mannington was named by 35% followed by Armstrong (24%),
Congoleum (18%), and Tarkett (12%). Ten other suppliers collectively accounted
for 11% of the responses. A follow-up question asking for the attributes that
made each brand a top choice once again confirmed that importance or quality,
style and price. Still, there was one company that has clearly gained a high
level of recognition. Respondents said the No. 1 reason offered for Armstrong’s
popularity was the company’s brand name.
Other findings of the
exclusive NFT poll were these:
• Most retailers-55%-devote
10% or less of their floor space to resilient products. Just over 80% said they
devote no more then 20% of their floor space to the category.
• Although a chief selling
point of resilient is price, about half of all resilient sales exceed $1,000
and nearly 20% of the orders are priced over $2,000.
• More than half of all
resilient flooring are sheet products. Tile and luxury vinyl tile collective
account for 27% of the volume at retail.
• In Luxury Vinyl tile,
respondents collectively mentioned 16 brands as their No.1 seller. The top three rankings- Nafco, Mannington
and Congoleum-accounted for 58% of the responses.
• Although opinions are
almost evenly divided on whether installation work should be completed by
outside contractors or full-time staff, there is one area of clear consensus.
Asked if they specify adhesives, underlayment and other installation products
for every job, 97% of those in the poll said they do.
• Using the Internet to drum up sales is still more the
exception rather than the rule. About 13% of respondents said they “promote” on
the Internet while less than one percent said they actually sell products
online. The percentage of those who said they don’t use the Internet for any
promotional or selling activity was 87%.