INTERVIEW Georgie Whitworth, Editor of Tomorrow’s Retail Floors, caught up with
Bruce Zwicker is a flooring consultant and former CEO of J.J. Haines, considered to be America’s largest floorcovering distributor with sales of nearly $500 million. This September, Bruce made his Flooring Show debut, travelling over from Baltimore, USA, to Harrogate to hold a series of talks at the event. After listening to Bruce’s expert discussions, we were curious to find out more about the US floorcoverings market…
How did you find this year’s Flooring Show in Harrogate?
I found it very well organised with good participation by the industry players and attendees. A variety of activities made it interesting for everyone and the location in Harrogate was great. In the main, it was as I expected but the venue was better than other flooring shows I have attended.
Did you see major differences between the exhibitors at Harrogate, compared with exhibitions you have been to in the US?
The US shows are, as one would expect, larger and more international in terms of visitors and exhibitors. Although I saw some flooring importers at the UK show and believe that, for some, it was their first time.
What does a general overview of the US flooring market look like?
The US flooring market grew more than 4% in 2017 and I believe we are seeing a slight slowing in 2018. LVT is experiencing phenomenal growth of 25-30% and is almost 10% of the total market now. The SPC or rigid core type LVTs are growing the fastest.
What are the biggest challenges facing the US market?
The LVT growth, almost 75% of all growth last year in flooring, has been a major upset in the past two years. Wood flooring and tile are now experiencing some share loss, whereas it was vinyl sheet, VCT, laminate and carpet which took a hit earlier. Now, we have the tariff on Chinese imports to the US, starting at 10% and possibly rising another 15% in January. But, 85% of all LVT is imported and about 95% of all rigid core LVT. Of the imports, about 90% is from China. So, prices are rising and there will be disruption when the next 15% tariff hits.
Carpet still has a big prevalence in the UK. How does this compare to the US? In the US, traditional carpet has been on the decline for
32 | Tomorrow’s Retail Floors
Insights from Across the Pond
American floorcoverings expert Bruce Zwicker to discover more about the US flooring market and how it compares to that of the UK.
decades, which seems not to be the case in the UK. Hard surfaces have grown at the expense of carpet and carpet tile for commercial use has taken some share from traditional carpet as well. In the UK you fight to keep your heritage and maintain a healthy carpet industry.
How important are independent flooring retailers in the US?
The independent ‘dealer”, as we refer to them, is very important. Many dealers not only have a remodel retail business but also are flooring contractors for new residential and commercial work. So, they are indispensable. But, in the remodel retail sector, they have been losing share for a long time to what we call the “Big Boxes” and the “Mega Flooring Retailers”. The Big Boxes are the likes of Home Depot and Lowes, who sell everything needed for interior and exterior remodeling along with appliances and gardening products. The Mega Retailers are very large, with sales of $500 million to over a billion, but smaller than the Big Boxes and sell only flooring and related supplies. The independent dealer now has 40% or less of the remodel share but once had 60% or more. I believe that in the UK some of the large Big Boxes and Mega Flooring Retailers have not done as well and at least two of them have greatly struggled recently.
How important is social media and online marketing to the US flooring market?
Social media is incredibly important for the small dealer in the US. During my talk at this year’s Flooring Show, I spoke about this topic and said that social media and internet-based marketing were essential to be sure your customers find you and can be attracted to your uniqueness. Online selling of flooring is slowly growing. At minimum, the internet is used almost all of the time by shoppers for research but most of the time the shopper goes into a store to shop or at least collect their purchase.
What are your predictions for the future of the flooring industry?
The flooring industry is a tough industry but there are many ways to make good money. The owner who has a strategy, a lot of ideas and energy, a good team, and is willing to learn and work hard can do very well. I mention learning because things are changing. Being aware of the changes and getting ahead of them are crucial for success.
www.tomorrowsretailfloors.com
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