Market Overview

Building Buzz Conference Sets the Course for Growth for Independent Flooring Retailers

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Bold Marketing and Product Initiatives to Drive Membership
Forward

Key brands from CCA Global Partners including Flooring America, Flooring
Canada, and The Floor Trader traveled north of the border to host
Building Buzz, its annual independent retailer-focused digital marketing
conference, July 22-24, at the Palais des Congrès de Montréal in
Montreal, Quebec. Featuring an all-star lineup of leading marketing
experts from North America, Building Buzz aims to provide independent
retailers with actionable strategies that can be easily executed and
implemented at the retail level.

"It's all about focus at Building Buzz," said Keith Spano, President of
Flooring America/Flooring Canada and the Floor Trader. "The bold
technology, marketing and merchandising programs we will be unveiling
these next couple of days focus on giving our members the tools to
transform their businesses—to take them from ordinary to extraordinary."

A key highlight at this year's Building Buzz is Drive™—one of the
boldest marketing initiatives developed by the marketing team. Drive™ is
a technology-driven, marketing automation platform with a
state-of-the-art CRM system, incorporating real-time lead scoring,
lead-conversion and lead-nurturing in a suite of bundled marketing
services that create a more personal customer experience.

According to Frank Chiera, Senior Vice President of Marketing &
Advertising, "We've built Drive™ to be a game-changer for independent
retailers across multiple verticals, and have invested a considerable
amount of resources to bring our members a fully integrated and
centrally managed stack of marketing services. Drive™ will help close
more sales, convert more leads and elevate the customer's experience
through highly personalized marketing communications."

From a product perspective, the group introduced a couple of key product
initiatives that continue to trend with today's flooring shopper. First
up is a new introduction this summer addressing the challenge for
today's customer who desires the beauty of carpet but needs extreme
performance. According to Cathey Gundlach-Links, Vice President of
Merchandising, "The fear of stains, spills, pets, kids, and wear will no
longer deter the soft surface consumer with our new Rival by Resista
brand." From a waterproof backing to a high-performance fiber, Rival is
protection from top to bottom.

Also, according to recent research done across members' websites and
social media engagement, "waterproof" is a frequently searched term by
consumers when researching flooring. Therefore, the group continues to
focus its efforts on products like Downs H2O with its waterproof, kid
proof and pet proof protection story. According to Gundlach-Links, "The
newest launch in our exclusive collection of Downs H2O fusion core
luxury vinyl will complement the collection with a beautiful new 5" wide
plank."

Additionally, at this Building Buzz, we have an impressive line-up of
speakers to include Futurist, Brad Grossman who will discuss how to stay
relevant and successful in the face of rapid cultural change. Grossman
has been featured in The New Yorker, The New York Times, and Fast
Company to name just a few. We will also hear from longtime flooring
executive, Piet Dossche, Shaw's President of US Floors & Executive VP
Hard Surface at Shaw Industries, who will share insight on the latest
trends in the flooring industry.

Driving Momentum at Retail

To stay competitive and continue to innovate around financing options,
for the first time ever, the cooperative will introduce Project Pricing,
a financing option that allows sales professionals to focus on
increasing the average sale while ensuring the customer's happiness.

Spano explains, "We know that the average sale increases when we offer
financing to our customers. In fact, according to a recent article in
FitSmallBiz.com, the average small business sale can increase by as much
as 120% and we want our members to capitalize on these opportunities."

"And, we're not stopping with financing," exclaims Spano. "Building Buzz
is the perfect platform for us to unveil two strategic partnerships
we've formed with Rugs.Shop and Updater, two initiatives
we feel will drive incremental sales and create new leads for our
members."

To capitalize on the booming area rug segment, the co-op partnered with
Rugs.Shop, an e-commerce platform with an extensive selection of area
rugs. This turnkey and centrally managed program can be easily added to
Flooring America websites. Members receive all the benefits of selling
rugs online with all the back-end operations being handled by Rugs.Shop.

The partnership with Updater, a technology company that builds powerful
tools to help people move, will provide members with qualified leads
based on consumer data of those who have recently moved into new homes
or apartments.

Spano concludes, "We strive to always be one-step ahead of the
competition and no other cooperative delivers the groundbreaking
technology and programs as well as actionable strategies like we do for
our membership, allowing them to maximize sales and drive growth."

For more information on Flooring America/Flooring Canada, visit www.flooringamerica.com
or http://www.flooringcanada.ca
or like us on Facebook and follow @FlooringAmerica or @FlooringCanada on
Twitter and Instagram.

For more information on The Floor Trader, visit www.thefloortrader.com
or like us on Facebook or follow @thefloortrader on Twitter and
Instagram.

About Flooring America and Flooring Canada
Flooring America
and Flooring Canada are divisions of CCA Global Partners the nation's
largest floor covering cooperative. With more than 500 independent,
locally owned flooring retailers, Flooring America's member stores work
hard every day to become the most recommended flooring stores in North
America. Flooring America's independent retailers strive to make
customers deliriously happy by guiding, advising and finding the right
floor to make homes beautiful. We are the flooring store where friends
send friends for their new floors.

About The Floor Trader Group
The Floor Trader Group is the
independently owned outlet flooring and home store division for
America's largest flooring cooperative, CCA Global Partners. The Floor
Trader Group stocks inventory and buys flooring product in massive
volume to deliver happiness to customers faster than most retailers. The
group is focused on helping customers create a beautiful space for less.
Floor Trader retailers are guided by the Theory of Outletivity, a
combination of no-frills environment plus in-stock floors and a
high-tech approach.

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