ProSource Wholesale Floor Coverings Franchise Expanding To Offer Franchises in Canada

ProSource Wholesale Floor Coverings plans to expand in the Canadian market as part of an aggressive growth strategy. The plan includes a limited number of exclusive Franchise territories where new and rehabilitation spending is on the rise, says the company.

Mark Jameson, vice-president of franchise development for ProSource, said initial company projections call for 10 to 12 additional locations throughout Canada in the next two to three years including Calgary, Edmonton, Toronto and Vancouver. "We've just started to get serious about Canadian expansion," said Jameson.

"We have targeted Calgary and Edmonton as probably hopefully for 2006 for expansion . . . We are looking at major markets we believe we can be successful in based on our studies based on the opportunity in the market . . . We believe Calgary mirrors other cities that we do very well in and we think that Calgary will be a great market for us."

He said the company has expanded at a record growth rate in the U.S. in 2005 with eight new locations bringing the total number of showrooms in the United States and Canada to 153. There are currently two locations in Toronto which opened about five years ago.

"The Canadian construction landscape is the logical next step for our expansion plans with spending expected to grow more than 30 per cent by 2008," said Jameson.

According to Global Insight Inc., a U.S.-based economic consulting and research firm, construction spending in Canada in 2006 is projected to grow to $141 billion.

"ProSource is a showroom designed only for trade professionals. So we don't sell retail. We don't sell like Home Depot does or many of your local carpet retail stores," said Jameson. "We locate in non-retail settings -- typically in an office park, an industrial location, maybe a major business corridor.

"We are a members-only concept. We sell to builders, designers, remodelers, and installers. That's our base."

There are more than 175,000 members throughout North America.

ProSource markets directly to this clientele. He said the company offers a choice of more than 20,000 types of flooring in all of the showrooms and it guarantees the lowest price to the trade professional.

Trade professionals are also provided with 24-hour showroom access.

"The key is that the showroom becomes theirs and we're only a distributor to trade professionals," added Jameson, adding the company has close to half a billion dollars in annual sales.

ProSource flooring choices include carpet, vinyl, ceramic tile, natural stone, laminate and wood products.