Where to start: Experts offer advice to retailers considering new category
Article Number : 3970
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Date 12/9/2008 9:17:11 AM
Written By LGM & Associates Technical Flooring Services
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Abstract By Deena Bouknight
You may not currently be carrying area rugs in your store, yet you have considered the product category...
Article By Deena Bouknight
You may not currently be carrying area rugs in your store, yet you have considered the product category. However, concerns may be too overwhelming— too much of a space commitment, my salespeople know nothing about rugs, what styles, sizes, colors do I choose?

Rug makers have stepped up to the plate to address these concerns in such a way that makes it almost seamless to add the product category to your business’ offerings. Plus, as Jim Curtain, vice president of sales for Shaw Living, points out, it is worth any effort. “Rugs are an outstanding way to increase revenue and store traffic.”

A first step is to attend a market. Home furnishings markets such as the one at High Point carry a broad assortment of price points and styles. The Atlanta International Area Rug Market, though, is a target site for area rug buyers. Running in 2009 from Jan. 7 to 12 , the market has more than 450,000 square feet of rug product and also features the National Oriental Rug Show. There are five floors of permanent area rug showrooms and temporary booths housing 125 importers and manufacturers.

Overwhelming, perhaps, yet rug companies are willing and ready to assist with a game plan for your store. Retailers can get into the action with just a few hundred square feet of space. Shaw recommends 500 square feet; others say just enough for at least one rack will suffice.

“If space allows,” says Kim Barta, brand manager for Shaw Living, “then 8 x 10 racks should be used for the best display.”

Nourison’s newest offering, touted as “Little Space, Big Profit,” is a display that shows more than 1,000 SKUs in under 20 square feet of space. Stores just entering the rug arena can choose from 360 designs from more than 50 of Nourison’s best- elling collections to create customized assortments for their individual Rug Boutique.

According to David Forman Nourison’s marketing director, “Even before market conditions turned, Nourison was aggressively pursuing ways to help stores increase profits. The Rug Boutique is the perfect solution. It addresses the retailer’s main issue of limited floor space and the customer’s need to be able to experience the product and see it in a natural setting. The display also presents runners and shapes, something that traditional rug rack displays can’t do.”

So how do you decide what styles, sizes and colors of rugs to merchandise?

“Retailers should be sure to have an assortment of price points, designs, colors, shapes and sizes,” Barta said. “This separates them from the mass merchants or big boxes, which typically show only 5 x 8 sizes. We also recommend placing area rugs near the hard surface area if at all possible. The two categories go hand-in-hand. Retailers can even offer a coupon or discount on a rug with a hard surface purchase.”

Diversified offering

She added, “Retailers should know their market. If contemporary, the rugs should tip that way. If traditional, the mix should tip in that direction. Either way, the dealer needs to be sure his offering covers a gamut of styles—something for everyone: traditional contemporary, transitional and a good, better, best assortment and price points.”

Curtin explained the rug business is quite regional in nature. “What sells in New England will not sell in Houston. Our area rug specialists are equipped with information that will guide retailers toward the looks that will be successful in their region or location.”

Based on location and customer type, “I point out the best sellers,” said Betsy Holotik, executive director of national sales for Feizy Import & Export. “It is important, for a customer like this to have a variety of every type and price point. And that is the beauty behind Feizy Rugs—one stop shopping.”

Company C, which emphasizes high fashion color and style choices, has a stock program to suit every kind of retailer. “The more you display, the more you sell,” said Kristi Lefebvre, marketing manager. “Layer rugs and show them in several different sizes. It’s nice for customers to see the larger sizes, but Company C also offers a 1 x 1 sample program for color matching. This helps customers feel confident in their purchase. Company C also custom-made a runner stand that nicely displays the product in a different way for the consumer.”

Finally, rugs can be displayed in fully accessorized vignettes to capture attention. Brightly colored, expressively patterned rugs turn heads in retail stores. “Vignettes with rugs as a back drop are an outstanding way to create attention,” Curtin said.

Educate your staff

How can retailers bring salespeople on board an area rug program when they have no knowledge of the category? Education and more education, believes Mark Lacy, president of The Furniture Training Co.

The company offers several online courses that train sales associates with four easy Internet-delivered lessons focusing on area rug history and design, as well as the processes for making area rugs by hand and machine. There is even information about how to properly care for rugs.

Lacy says the new Room-Design for Sales Associates course also addresses the topic of area rugs as design accessories. “Stores new to carrying rugs cannot expect their sales associates to intuitively know how to sell these unique products. In addition, they need to learn about the exciting design possibilities modern area rugs offer for adding color, pattern and style to any room. However, once sales associates have been properly trained in the fashion and romance of these lovely and versatile accessories, they will be able to sell them with confidence and will quickly see the benefits of increased sales and more satisfied customers.”

Plus, most rug makers offer some level of sales training. “Our area rug specialists are available for training sessions on product knowledge and will assist during special retail sales events,” Barta said.

Adds Curtin, “They are required to train all customers that are new to the area rug business along with the customers’ retail sales associates. Our specialists are equipped with a rug training manual that is in the process of getting an update as we speak. The manual is designed for the retail sales person to keep post training and it has been very successful.”

Most importantly, rug companies are willing to partner with retailers who carry their products for the long term. Dealers rarely encounter sink-or-swim experiences where rug companies are concerned.

“I feel the most important thing any retailer needs from a vendor is constant communication, a good support team and education on the product,” Holotik said. At the end of the day, “what keeps a customer loyal is the feeling that he is just as important as the next guy. Rugs tend to be an intimidating product. I find that assuring the customer we are there for him, and we are going to do everything we can to make sure our product is successful in his store, makes everything less intimidating. This is an amazing time to be in this business because vendors are stepping up to the plate to provide retailers with more sales tools, knowledge and support.”