www.floortrendsmag.com/articles/88918-i-nft-i-market-study-hardwood-retailers-branch-out
NFT Market Study: Hardwood Retailers Branch Out
March 27, 2008

Armstrong
Hardwood’s Global Exotics Santos
Our exclusive survey of more than 290 floor covering dealers finds high hopes for the category in 2008. There is also growing interest in wood species beyond oak: Bamboo, pine and pecan make the list of top sellers.
Growth expectations may have been softened by market conditions, but it is clear that hardwood will remain a driving force in the flooring business this year; second only to broadloom carpet in popularity. Still, it is also evident that this venerable category is undergoing some changes.

Mannington’s Brazillian
Cherry

East
Teak Fine hardwood


Although retailers said price was a major consideration when they select a manufacturer or distributor, it was not the No. 1 answer. The top priority-identified by nearly 80%-was product quality. It also seems retailers are more flexible about price than quality. While 15% said price was not an important factor, less than 1% made the same observation about quality. Other considerations focused on brand reputation and the level of customer service provided. Far less significant to consideration were incentives including support marketing/merchandising materials and rebates.

Other findings in the hardwood study included these:
• The market is almost evenly split between engineered (51%) and solid hardwood (49%).
• There is no clear preference of plank width. Although product sized from 2.5” to 3” was the top choice among 34% of respondents. Three other size categories were each cited by at least 20% of the retailers.
• Reclaimed wood remains a growth area, yet it lags far behind other specialty wood products including machine or hand scraped wood and exotic species.
• About one of every five dealers in the survey said they use no more than two hardwood suppliers. Far more common is the inclusion of multiple hardwood lines. On average, dealers carry product from five different suppliers. About one-quarter of those in the poll said they order product from at least six places.
• The most common way for a dealer to acquire hardwood product is from a general flooring distributor (51%). The second choice is a hardwood distributor (34%), while 13% said they get their product direct from the manufacturer.

The study was mailed to 3,500 U.S. flooring retailers/dealers who are active, qualified subscribers to National Floor Trends (NFT). A total of 294 survey questionnaires were completed and returned for a response rate of 9%.
This in-depth research study, including trending data from 2007, is intended to provide insight on retail business activity, hardwood sales trends, expected growth in 2008, top selling hardwood species, products (exotics, machine/hand scraped, reclaimed woods), important factors driving manufacturer/distributor selection and more. The full and complete report is available from Clear Seas Research. For information about ordering or to find out more about Clear Seas Research services contact Sarah Turner at turners@clearseasresearch.com.