Diehard Red Sox fan that he is,
Carpet One’s Howard Brodsky may cringe when he reads this, but his retail
operation often reminds me of the N.Y. Yankees. While Carpet One most certainly
does not share the Yankees’ penchant for swaggering and arrogance, the
similarity is this: if the Yankees do anything less than win the World Series,
their season is deemed a failure. Meetings are called. Changes are made. For
Carpet One the goal is very similar. Time and again its members are reminded
that the retail co-op’s ongoing mission is nothing less than complete and total
domination of the flooring business. But like just about everyone else in the
flooring game these days, Carpet One seems to have hit a rough spot on the
schedule.
“Crappy,”
is the word Carpet One president Evan Hackel used to describe current business
conditions. His blunt assessment came last month during the co-op’s winter
meeting in Grapevine, Texas. These meetings tend to be pretty upbeat affairs,
but this time Hackel was sounding the alarm. His message: complacency and
failure to recognize the changing nature of flooring could be a death knell for
even the most successful operation. To drive home the point, huge video screens
flanking the stage showed a mock graveyard. As the Ray Charles tune “Hit the
Road Jack” played, close-ups revealed that each headstone bore the name of a
once popular, but now defunct, brand. TWA, Montgomery Ward, NYNEX and a host of
others that flashed by ominously.
“If we
don’t change,” Hackel said as the huge room fell silent, “unfortunately some of
our businesses won’t be around anymore.” In reality, many of the “changes” he
spoke of have been in the works for a couple of years. Only now, faced with a
slowdown in the business, there is greater urgency. For one thing, they
lengthened the name to include “Floor and Home.” after “Carpet One.” Again and
again members were told the name “Carpet One” must become synonymous with
flooring.
With
nearly $3.9 billion in annual sales, Carpet One is easily the No. 1
retail-group in flooring. Still, at the three-day meeting there was a clear
understanding that the traditional specialty retailing model is fast becoming a
dinosaur. A strong web presence and a marketing pitch that establishes a real
point of difference are major priorities for Carpet One. The thinking is that
as business has softened from a year or two ago, there is still demand for
quality flooring. As such, a big priority is to lure customers away from the
competition.
The
Carpet One strategy has a few key elements: two big ones are better products
(including a number of exclusive items) and superior customer service
(including one of the best installation training programs in the business). The
point about service was stressed by co-CEO Howard Brodsky as he addressed a
small gathering at an awards presentation. With his folksy charm and easy
smile, Brodsky recounted his days as a retailer before he launched Carpet One
with Alan Greenberg in 1985. “If an installer showed up late, I sent flowers.
If someone came into the store just to browse, we had cookies for them.” He
recounted an airline captain who personally ordered pizzas for passengers
stranded by a storm. “Make your customer service ‘story worthy,’” said
Brodsky. “Each one of those passengers
probably told that pizza story to 25 people.”
Of
course, another big key is Carpet One’s competitive instincts. Members were
told to put the competition in their crosshairs. They were reminded that big box
stores, other specialty retailers and the web are all reaching for market share
that should belong to Carpet One members. Be aggressive, they were told. The
call to arms was made clear when Hackel paraphrased a line from “Boom, like
that,” a Mark Knopfler song written from the perspective of McDonald’s founder
Ray Kroc. “How does that line go?” he wondered out loud. “If the competition is
drowning put a hose in their mouth.”
Like many
in the industry, Carpet One members may have seen their sales soften recently.
Still, given their resources, their leadership and their aggressive game plan,
Carpet One is poised to increase its considerable clout this year and well into
the future. Maybe the Yankees, who have not won the World Series since Bill
Clinton was president, should take note.