SHAW INDUSTRIES AND MARTHA
STEWART LIVING END RELATIONSHIP
DALTON, GA. -- Shaw Industries and Martha Stewart Living Omni Media have parted company after a licensing relationship that lasted nearly four years.
The Shaw-Martha Stewart program had encompassed a broad spectrum of floor covering products, including carpets, rugs, wood floors, ceramic tile and linoleum. Floor covering retailers were asked to participate in a full-scale marketing and merchandising program that included a major store fixturing program.
A spokesman for Shaw said the agreement with the Martha Stewart organization does not allow Shaw to comment on the relationship. He confirmed, however, that the two companies had officially dissolved the business arrangement.
Observers in the floor covering industry say that the Shaw-Stewart split had little, if anything to do with Martha Stewart's legal difficulties.
The Martha Stewart Signature flooring program seemed jinxed from the start. In the Summer of 2001, Shaw brought key dealers together for a major presentation at The Farm, the posh country club in Dalton, GA, where Shaw is headquartered. Martha Stewart herself addressed the retailers.
While retailers were considering participation in the program, the events of September 11 put a psychological whammy on all retailing activity. Instead of moving boldly ahead with the plan, many retailers pulled in their horns.
Then, as the economic climate improved, Martha Stewart's legal problems and subsequent jail term didn't help dealer confidence.
"The licensing partnership just didn't work from the very beginning," said one major retailer who asked not to be named. "Shaw asked for a major financial commitment for a program that just didn't seem that good. The colors weren't right, and some of the products seemed unsaleable," he said.
Rugs were a case in point, the retailer said. "I understand that Martha Stewart did not want any red rugs in the line. The browns and faded grey-blues and sage greens in the rug collections were simply not appealing. Grey is not a good rug color. Red, on the other hand, is a great rug color."
Shaw Living, the rug division of Shaw Industries, did not actively market the Martha Stewart rug collections.
Shaw Living is a successful participant in other licensing programs, however. In fact, the company's Kathy Ireland collections are currently some of the best-selling rugs in the country.
Shaw Living is also involved in licensing programs with such home furnishings programs as Tommy Bahama, Mary-Kate N Ashley and Jack Nicklaus.