Shifting channels nudge rug sales
By Cecile B. Corral -- Home Textiles Today, 6/16/2003 12:00:00 AM
NEW YORK —
Rugs of all sizes and price points found their niche on stores' sales floors in 2002, as numbers from HTT's annual The Facts study proved.
The industry — which includes accent, scatter and area rugs — experienced fervent growth during this one-year period of 12.5 percent to $6.3 billion — a rate that might seem surprising to some considering the sluggish state of the economy in 2002.
Several factors were attributed to this growth spurt, including a stronger concentration on imported goods, improved marketing efforts of smaller-size rugs and stronger placements at home improvement chains.
The study found slight shifts occurred in retail for market share, at times resulting in a sea change in real dollar volume.
Home centers felt the most substantial growth on both counts — market share rose by 2 percent, leading to a 58 percent leap in sales to $441 million.
Home specialty chains also gained. A 1 percent pick-up in market share yielded a 27 percent jump in volume, growing to $567 million from 2001's $446 million.
Those gains came largely at the expense of other channels, particularly two that historically have held the largest shares of this product category's market: department stores, which dropped 3 points to a 14 percent share; and discount department stores, which lost a point, dipping to a still-dominant 28 percent share.
Despite these losses, only department stores experienced a decline in actual sales volume, dropping 7 percent to $882 million for the segment. Discount store sales still increased 9 percent last year, to nearly $1.8 billion.
|Distribution Channels||Share 2002 %||Sales 2002 $|
|sales in $millions||2001||2001|
|* Other includes interior designers, military exchanges and warehouse clubs.
|1. Discount department stores||28%||$1,764|
|2. Department stores||14||882|
|3. Mid-price chains||12||756|
|4. Home textiles specialty stores||9||567|
|5. Off-price chains||8||504|
|6. Home improvement centers||7||441|
|8. Furniture stores||5||315|
|10. Carpet/floor covering stores||3||189|
|11. Gift/home accent stores||2||126|
|13. Single unit specialty stores||1||63|
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