Research has shown that within weeks of purchasing hard surface flooring—in some cases, days—an estimated 80% of consumers will look to accessorize the floor with a rug.
These days that add-on could be a traditional area rug or—more likely among flooring retailers—a custom rug fabricated from broadloom. In other words, the rug is manufactured as carpet but tailored as a rug or runner.
The trend has been around for a few years but has gained popularity recently, according to mill executives. “High-end carpet is frequently used in custom area rugs, which is a growing segment in the residential flooring market,” said T.M. Nuckols, president of the residential division of The Dixie Group, whose three residential brands sell broadloom that can be customized into rugs. Indeed, most carpet mills today offer some version of a custom/bound rug program.
This option gives flooring dealers an opportunity to be in the rug business without having to devote a large amount of space for inventory. While not every dealer has seized this market opportunity, many do offer custom-made rugs from broadloom or take part in mill-sponsored programs. Those that have embraced this new line of business say they are happy they did.
A case in point is Taylor Carpet One Floor & Home, Fort Myers, Fla., which promotes its custom area rugs internally, mostly during its hard surface sales process. “We prefer the custom rugs because people can get exactly what they want and do not have to settle for a pre-made rug,” said John Taylor, owner. “It seems most pre-made rugs are selling online and are not really our customer. The option for custom sizes is a big deal to many of our customers, too. As a result, we sell a good amount of custom area rugs.”
So, too, does Myers Carpet, which has placed rug workrooms in all three of its locations. In addition, the company renovated an 88,000-square-foot building in Atlanta that will house a 20,000-square-foot showroom and a 60,000-square-foot warehouse, including a workroom to produce rugs.
The investment has so far paid off as Myers’ rug sales have increased year over year, due in part to its emphasis on fabricating in-house. “Our Atlanta, Nashville and Dalton locations all have workrooms and the most experienced artisans in the floor covering industry for the production of custom rugs, which benefited our business,” said Rick Myers, president. “We can make any type of rug or carpet they want with anything we have available in that workroom. It is their own space to shop. Customers will pick their own rug, binding and surging colors so they are involved in the creative process from start to finish.”
Flooring retailers who can successfully tap into this market opportunity stand to gain significantly—both in market share and profitability—without having to retrofit their store. “While the footprint in our showroom has stayed the same, we have brought in more vendors that offer custom rug programs with their broadloom displays so that we can leverage both offerings for our clients,” said Matt Wien, partner, Marshall Flooring, Mayfield Heights, Ohio.
The role of RSAs
Retail sales associates (RSAs) play an influential role in this 2-for-1 sale. Their job is to explain to customers how rugs complement hard surfaces by adding a touch of luxury and uniqueness—without having to fully commit to carpeting.
The opportunistic RSA can also demonstrate the versatility of custom sizing and shapes that match a room’s proportions. That said, some dealers say converting the additional sale is not exactly a layup. As Adam Joss, owner of The Vertical Connection Carpet One, Columbia, Md., explained, “The add-on area rug has always been a great opportunity and continues to be. The challenge continues to be that RSAs often work so hard for the [hard surface] floor that there’s a bit of fatigue when it comes time for the rug. Is it presented before finalizing the floor? If so, does that stall the floor purchase? Is it presented after the floor purchase? If so, does the client feel they’re being ‘upsold?’ There are countless other reasons why it doesn’t happen more often. The fact remains, however, that it absolutely presents an opportunity.”
Fellow Carpet One retailer Cathy Buchanan, co-owner of Independent Carpet One Floor & Home, Westland, Mich., said she encourages her sales associates to recommend the add-on purchase following a hard surface sale as a matter of course. “We are finding that quite a bit of our soft surface sales lately have been geared toward runners and area rugs due to the high volume of hard surface sales,” Buchanan said. “In many instances, we immediately mention the acoustics, comfort and warmth that a rug or runner will add to her home. We mention the slip retardance aspect of a beautiful runner on steps. With our Design Gallery of Kane, Stanton, Nourison, Couristan, Masland and Fabrica lines, the options are endless. And it truly puts a spin on the consumer’s personality and individual style.”
Mill executives said they would like to see more retailers follow Independent Carpet One’s lead and actively seek to convert more customers at the point of sale. “I tell dealers all the time that if you don’t close the rug deal in your showroom you will lose the deal, and they will buy elsewhere,” said Don Karlin, director of broadloom sales for Nourison. “It is just a question of where and how consumers are going to purchase [rugs].”
For those who have mastered the art of selling hard surfaces and rugs, it is an additional sale and a boost to the bottom line. For example, Mike Foulk, principal at Foulk’s Flooring America, Meadville, Pa., found that a “simple qualification at the time of a hard surface sale usually will lead to an area rug inquiry. A lot of people like to put an area rug on top of their new floors as a decorative accent.”
Marshall’s Wien, meanwhile, said the increase in higher-end rug purchases more than makes up for the recent fall-off in overall retail foot traffic.
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