Denver—Mohawk is focused on supporting its Edge retailers with programs, products, plans and initiatives designed to prepare them for the upcoming selling season and take advantage of emerging opportunities. That was the overarching message delivered to attendees here on day one of the company’s biennial Edge Summit.
“We’ve all seen a lot of changes in our industry from the consumer preferences to product innovation to merchandising, and we’re all proud of the success that we’ve built together—which is why we’re constantly working to find new ways to improve your results,” Jeff Lorberbaum, Mohawk chairman and CEO, told attendees in his keynote speech on opening day of the summit. “You’re our best retail partners and the preferred flooring providers in each of your communities. You set yourselves apart with your expertise, your commitment to service, your successful management of all the changing times through the years, which is not easy. This summit is really designed to provide each of you with competitive advantages, including different selling strategies, marketing best practices and ways to inspire your customers so that you have higher sales.”
Roughly 550 Edge dealers representing 250-plus locations were on hand for the event, which gave retailers a first look at Mohawk’s broad array of new product launches for the new year, while offering retailers a host of relevant educational sessions designed to build their business. “While these sessions offer you many ideas for your business, this event also provides you with an opportunity to learn from each other,” Lorberbaum added. “Each of you have unique experiences in the industry and I hope that you’ll make new connections with everyone here that’ll inspire you and create new benefits for your business as well. Our goal is always to increase your sales and improve your profits. We’re committed to giving you what you need to deliver better results.”
In keeping with tradition, Lorberbaum shared his outlook on not only the floor covering industry but also the key drivers impacting the U.S. economy in general. “When we gather at these events, I always try to give you some perspective of what I think the present and future is going to look like in our industry,” he told the audience. “I can tell you it’s not getting any easier to see what’s going to happen. For the past couple of years, our industry has faced so many different headwinds. It’s really tough for anyone to gain any clarity into what the future’s going to look like.”
Lorberbaum drew parallels between the challenges Mohawk faces and those obstacles faced by its retailer partners. “During challenging times, we–like our retailer partners–have been focusing on all the aspects of the business which we can control. As retailers you’re looking at how to reduce your costs, improve efficiency, streamline the businesses and processes, and use technology better. At the same time, we’ve devoted more resources during this time to improve our product development, bring new merchandising ideas to you and improve logistics and service level to get the products through. One of the best lessons I can share with you is just what we’re trying to do, which is to take advantage of the slower environment and make the choices and the actions that will really benefit your business for the long term, not just to get through tomorrow. We hope that it’s going to prepare us and you for even better times when they come about–as they always do.”
To work in this industry, Lorberbaum shared with attendees, we all really have to be optimists. This is especially true given the flooring industry is highly cyclical. “I’ve been around long enough to know that every time our industry has slowed down, we always bounce back even stronger,” he said. “For the past couple of years, we’ve all been waiting for the housing market to recover. Though the inflection point is really impossible to predict, the recovery seems to be just around the corner with improved existing home sales, new home construction and residential remodeling in 2025 and beyond projected to come back again. This event will emphasize how you can take advantage of this improving environment and maximize your sales and profits over the next few years. As we close out 2024, I really see a lot to be optimistic about for the long term, including the Fed’s recent actions to stimulate the economy, which will be a catalyst for our industry.”
Echoing those sentiments was Paul De Cock, currently president of Mohawk Flooring North America, but who will officially take on the title of Mohawk Industries’ president and COO in February. “After two years, we are back stronger and more powerful than ever,” he told attendees, alluding to the previous Mohawk Edge Summit held in 2022. “The world and the business environment have been challenging but, together with you, Mohawk is ready to seize the opportunities that lie ahead. I have a very strong feeling that once the market rebounds, we will be unstoppable together.”
Hence the reason, De Cock said, why the top Mohawk dealers took the time out of their hectic schedules during the holiday season to attend Edge. “You are here to make more money with Mohawk,” he told attendees. “And how does Mohawk keep that promise to you? We keep that promise by being the best partner and setting the gold standard in our industry. Everything we do and every action we take is focused on creating an edge for you and your end consumers. We want to be the envy of the industry, because our brands are better, our service is better, our products are better. At its core, Edge Summit is about arming you with the tools you need to rise to the top with us in performance and profitability.”
Jason Randolph, who was elevated to the position of senior vice president, residential sales, earlier this year, concurred. “Edge is designed for our most loyal accounts and valued partners, and they are some of the largest retailers in the industry,” he told FCNews during a tour of the Edge show floor. “It’s also a chance to, first of all, thank them for the business, thank them for supporting Mohawk and give them an event and an opportunity to meet all of the executives within the company, while giving them first look at all of the products and all of the specials we have. We’re giving them first opportunity and first chance to see all the new displays, to see all the new products and to actually purchase those new products.”
The timing of Edge, according to Randolph, couldn’t be better. “We’re in a really good climate; it’s easy to see that as you walk around the showroom today. Everyone’s happy, everyone’s optimistic, everyone’s willing to take on new products. That’s really a sign of the times to come. And from a business climate perspective, we actually are very optimistic about next year. In hard surface, there’s a ton of market share that we can take. We’re also optimistic that the interest rates will start coming down next year.”
Many Edge retailers, according to Randolph, seemed more optimistic about business now that the presidential election is behind us. “I think there was a lot of anxiety around the election,” he said. “One thing that we noticed is once the election was over, our retailers said people started coming back into stores almost immediately. Now, whether that has to do with the candidate who won, or if they’re just glad it’s over, I don’t know. I think people were ready for the election to be over with. They know the sky’s not falling, and so now they’re back in stores shopping.”
Winning formula
To illustrate Mohawk’s commitment to its retailer partners as the industry seeks to ride the momentum, De Cock shared the company’s fundamentals on shaping a culture of performance and winning within Mohawk. “Every aspect of what we do is centered around the three R’s, the principles of how we operate within Mohawk: relentless customer focus, ruthless simplification and reinvestment in our people and the planet. These are the guiding principles for all our company decisions, so you can win in your marketplace.”
De Cock went into deeper detail about these principles, drawing direct connections to how they stand to benefit Mohawk’s retailer partners. “Customer focus is all about delivering on our commitments to you. Everything we do at Mohawk, we do it with you in mind. And we do it relentlessly. When we commit to you, we execute for you. We say it, we commit to it, and then we execute upon that commitment, it is as simple as that. It is rule No. 1.”
Customer focus, according to De Cock, is also about making sure that when consumers are shopping for flooring, they think of Mohawk. “We need to be their first choice, and once we grab their attention, we want to convert them to a Mohawk customer, to your customer. Over the last few years, we hope, you have seen evidence of this focus in action. No initiative is too small to execute upon that commitment to you, and to drive your profitability and your performance.”
The second “R,” ruthless simplification, is essentially about streamlining the experience. “Our goal is to simplify the experience while still exceeding every customer’s expectation,” he said. “As you know, the floor covering market is complicated, the choices are complicated, and the landscape is complicated. What is difficult is being simple and purposeful. Everything we do needs to be intentional. We need to make things simple for you. But that does not mean ‘simplistic.’ We put a tremendous amount of thought behind each initiative, having a different positioning and appeal to different customers. Taking the clutter out of the shopping experience for our flooring retailers requires extreme sophistication to make this simple for you to interact with us.”
The third and final “R” stands for reinvestment in our people and the planet. “Investing in our employees gives Mohawk the foundation it needs to deliver throughout the organization,” De Cock stated. “From the manufacturing floor, the sales execution to marketing communications, this is reinvestment not only in our people, but also in you, our customers and your consumers, and all communities over the world. The second part of the third R is reinvestment in the planet. We have a commitment to the environment and sustainable practices. Sustainability is no longer considered a bonus, but rather a must-have in everything we do at Mohawk. Mohawk’s sustainability vision is to build a better future for our people, the planet and the company as the global leader in innovative, sustainable and healthy products.”
Changing of the guard
During the opening session, Mohawk introduced retailer attendees to Ken Walma, the former Big Ass Fans president and the man who will take on De Cock’s role once he transitions to president and COO of Mohawk. “We want to enable your growth and success,” Walma told attendees. “That’s one of the many things that attracted me to this company and led to my decision to change industries, move my family and be here with you today. Mohawk’s been on my radar for a long time. When I met Paul [De Cock] just over three years ago, I was immediately drawn to the company culture, especially how it’s built around you, our customers. Another reason that makes Mohawk and the industry unique to me is the opportunity to blend art and science. Our products are not just made, they’re crafted with precision and creativity. Last, in addition to art, we bring science to the table. Our processes, our systems, our technology, our strategy, our focus on sustainability and our support. This all helps you, our partners, thrive. Together we will improve the places where people work, live, and play through beauty, performance and sustainable flooring products.”
Moreover, Walma said he just wants to make retailers better businesspeople. “I am here to help you grow your business, increase your profitability and deliver an exceptional experience to your customer while improving the places we live, work and play. So over the next few days, I look forward to meeting each of you. I’m truly excited to learn more about your businesses, understand what’s working and, most importantly, understand and discover what we can do better.”
(Look for more coverage of the Edge Summit in upcoming editions of FCNews.)