Tracking Retail’s Changes

Tracking Retail’s Changes

Friday, May 27, 2022 from Floor Covering Weekly

Tracking Retail’s Changes
By Ron Dunn, co-founder, Alliance Flooring

Every retailer attuned to marketing could see it coming, but perhaps not to this degree. Five years ago, I did not fully foresee the significant benefit an evolving change in marketing would bring to independent flooring retailers. Ten years ago, budget lines included 2 percent to 6 percent of sales earmarked for advertising. That is what it took to drive consistent foot traffic. Five years ago, that was changing as we all were all experimenting with and discovering what works best in web presence and digital marketing. Today, there is no question that mobile devices drive foot traffic. The platform is incredibly powerful in its reach. Search engines have become the independent retailer’s best friend.

Five years ago, the big box stores were the quick, easy and popular flooring destination for Millennials. Today, thanks to digital exposure, local independent stores with their knowledge, experience, service, in-house installation and relational offerings have been rediscovered. As mobile devices help consumers locate local stores, the demographics in independent stores span all generations. Young couples with growing families are the fastest growing segment in our stores.

Similar to choosing a local coffee and pastry shop, independent flooring stores are enjoying vibrant business because consumers of all ages appreciate the connectivity that is offered. This then compounds on itself as happy customers who received personal attention and had a remarkable experience tell their neighbors and friends. This success dynamic has always been in play in our industry, but my observation is it has grown and magnified the past five years including through COVID recovery. Today, it is much more common for retail sales teams to clearly realize that their long and short term success lies in connecting with the consumer, communicating and building a relational following.

A lot could be said here. The same mobile device that brings consumers to our stores also helps the professional salesperson expand their reach. There is low hanging fruit in every market for every store that has built relationships. The same consumer whose home you finished may own an office building or rental property. Main Street commercial is a ripe market that is serviced with the same connectivity. This also applies to custom builders, remodelers and home flippers. Main Street and builder sales can quickly expand with the same dynamics that contributed to retail success and now as a store and as a sales professional you are much more diversified.

We are seeing this play out in small and large markets throughout the country. Five years ago, it was rare to meet a retail salesperson who consistently wrote $1.5M to $2M in business. With the help of mobile devices and maximizing that platform, this team of elites is rapidly growing.

This is a great industry filled with amazing opportunity. The threat from big box stores is smaller and the outlook for independent flooring retailers and their teams is brighter than it was five years ago.