As for carpet, Avalon credits Mohawk’s Floorscapes selection system for its success.

By Steven Feldman
Philadelphia—Avalon Carpet & Tile, one of the largest independent flooring retailers in the nation with 2006 sales of $85 million, has extended its presence beyond the suburbs and into the city. Avalon, with locations in New Jersey, Pennsylvania and Delaware, last month opened store No. 14—a 25,000-square-foot showplace here that represents the first major floor covering store to do business in the City of Brotherly Love in the last 15 years, according to John Millar, president.

Indeed, this dearth of a major independent floor covering store in the city is what led Millar to expand beyond suburbia. He was contemplating the move for three years. Economies of scale also played a role. “We were advertising with the Philadelphia newspapers and regional TV networks, so the cost to do this as far as media was concerned was not that great,” he said.

From a business standpoint, this was a no brainer. “There are 3.8 million people in Philadelphia,” he said. “So you have a million people to draw from within a 10-mile radius. Our other stores have 100,000 people to draw from within a 15-mile radius.”

Millar noted that the last premier flooring store in Philadelphia was Rittenhouse Carpets, which went out of business more than 15 years ago. And a couple of others moved out, he said. The reason: “The city was in real estate decay. Most people who lived in this area would go to New Jersey to buy everything. But over the last few years mega-stores like Home Depot, Lowe’s, Ikea and Bed Bath & Beyond have come in [which has allowed residents to remain in the area to shop].”

The new store borders the affluent Society Hill neighborhood with its blend of townhouses and high-rises, and the relatively blue collar area known as South Philadelphia, where families remain for generations. Thus, Avalon must cater to a wide spectrum of customer, which is reflected in its merchandising.

While Avalon has, for the most part, followed the same successful blueprint as in its other stores, there are a few modifications. For example, area rugs are usually positioned in the back of the showroom, but they sit front and center in the city location. Why? “There is a tremendous amount of wood floors in apartments and older houses,” Millar said. “And we also know there is no selection of area rugs in the big boxes. So we had to make sure if we had a young professional who rented an apartment and needed a $200 6 x 9, we could supply it.” Rugs start at about $159 and go up to $2,000.

This Philadelphia location also features and expanded ceramic tile and stone department. “No one else has the selection we have,” Millar said. “We want to make sure this store becomes a destination for people who visit the area.” He also noted that the store carries a larger inventory than the other 13 locations “because there is a sense of urgency with this population. They want it yesterday.”

The one constant across all Avalon stores is the carpet department. As a Floorscapes dealer, Avalon has the ability to respond to all types of clientele. “Being a Floorscapes dealer allows us to have a uniform carpet department, so if a customer shops any of our stores she feels comfortable,” Millar said. “And the diversity it has been able to accomplish with its rack system makes for an easy selection process. It is the workhorse of our carpet department.”

Judging by traffic counts since the store opening Jan. 5, Millar made the right move. “We have been drawing on average 120 people a day,” he said. “And 34% of the customers are coming in on Saturday and Sunday.”