RETAIL INSIGHTS: DAVID MINK ON 20 YEARS WITH MACY'S FINE RUG GALLERY
David Mink, CEO of Kenneth Mink, Inc., discusses the company's nearly 20-year exclusive partnership with Macy's, opportunities for growth and the changing consumer in an interview with RugNews.com. |
SWEDESBORO, N.J. -- Rug customers in the northeast usually shop for different styles than their counterparts on the West Coast, and no one knows this better than David Mink.
Mink is the CEO of Kenneth Mink, Inc., which in 2017 celebrates 20 years of running the rug business for Macy's. That partnership has grown over the past two decades to include the Fine Rug Gallery in Macy's stores and the chain's online rug business at Macys.com.
In fact, Mink, in an exclusive interview with RugNews.com, shared not only his strategy for localizing the department store's rug assortment, but also details on what he anticipates to be the retailer's future growth areas in rugs, his criteria for the Macy's supply chain, and how consumer habits have transformed the rug industry.
Location, Location, Location
"We have stores from Sarasota, Fla., to Seattle, Wash., and they have different customers with different tastes and different style needs," Mink said. "It's really important to differentiate the selection according to the location. We tend to sell more transitional and casual in the western and southern parts of the country, while it's a little more traditional in markets like New England and Boston."
A hand-knotted Kazak from Pakistan (foreground) counterpoints an expansive rear wall display of Karastan's Spice Market rugs at Macy's Herald Square.
Kenneth Mink's strategy to cater to each market coincides with the department store chain's My Macy's strategy, which differentiates each store's merchandise according to the region's tastes and style preferences.
"We adopt the My Macy's strategy in everything we do," Mink said.
At the same time, the Fine Rug Gallery stocks a core assortment--a broad mix of designs, styles, sizes and materials for all stores that include rug departments.
About 170 of the 700 Macy's stores, nationwide, carry rugs. In general, if the store has a furniture section, it also has a Fine Rug Gallery.
While the rug departments vary in size, most are between 2,500 and 3,000 square feet. Rack plans also vary, but most have between 80-120 arms (160-240 samples). In addition, each location features floor stock that Kenneth Mink merchandises using the My Macy's strategy.
The dramatic Fine Rug Gallery at Macy's Herald Square.
Growing Partnership
Kenneth Mink started with Macy's East in 1997 and assumed responsibility for all of Macy's brick-and-mortar rug business in 2009. In 2012, the company took over the rug sales at Macys.com. Kenneth Mink works exclusively with Macy's and is "very, very satisfied with the relationship. There is so much possibility," Mink said.
He details online sales and Macy's expanded focus on the outdoor category as growth opportunities. "Sales in online are excellent: We don't give out percentages or sales figures but online is growing significantly and should continue.
"The customer is changing, and is buying rugs online. Every one of the rugs we carry in stores is online. But of course, online we can go deep and show more of a collection. We might have four Karastan Spice Market rugs in a store, for example, but 20 online."
Transitional rugs in on-point colors on display at Macy's Perimeter, Ga.
Outdoor Expansion
Mink will be expanding its outdoor rug offering in tandem with Macy's strengthened emphasis on outdoor furniture. "The timing is good; outdoors it is an important business and a key growth category. In the past, we've displayed outdoor rugs on racks, but going forward we'll display them with the furniture because that puts outdoor rugs in the customer's minds.
"We are going to be focusing most of our outdoor on Karastan: it's a great name and their new outdoor collection was one of the most exciting things I saw at summer markets. It's a little bit higher quality, which is good because Macy's is selling better outdoor furniture: a set can be $2,000 to $4,000. Karastan is getting the price point up so we won't have to show a $200 rug with this furniture."
Executive/Regional Leadership
Kenneth Mink Inc. executives, Patty Huang, senior vice president of marketing and merchandising; David Mink Sr., chairman; David Mink, CEO; and Richard Kennedy, senior vice president of sales and stores.
David Mink represents the third generation to operate Kenneth Mink. David's father, also David, along with his uncles Ken and Fred, are still on the corporation's board.
Important Kenneth Mink executives include Richard Kennedy, senior vice president of sales and stores; Patty Huang, senior vice president of marketing and merchandising; and Ryan Gittelman, vice president operations and logistics. Other key players often seen shopping trade shows and markets are buyers, Henry Ward and Stephanie Crepea.
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Ryan Gittelman, vice president of logistics and operations, is a key Kenneth Mink, Inc. executive team member.
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No longer the small family business that Kenneth Mink Sr. founded in 1972, Kenneth Mink has regional teams in each market that are constantly checking inventory and merchandising the Macy's stores and the Fine Rug Galleries.
"Team members are important to our company--and key to our company. We have a tremendous regional team that do everything from selecting what rugs go on feature walls, to meeting regularly with Macy's store managers and operations staff. Essentially, they are our eyes and ears out in the field and are very influential in driving the business," Mink said.
Henry Ward and Stephanie Crepea, buyers for Kenneth Mink, Inc., pause for a RugNews.com photo while shopping a recent market.
Domestic Suppliers & Markets
Kenneth Mink mainly works with domestic suppliers.
"We used to do a lot of direct importing," Mink said. "But now we rely almost exclusively on our domestic suppliers. We've found over the years that it's beneficial for us to form and keep those relationships with our domestic suppliers. I feel very strongly about my existing supply chain," Mink said, adding that "Karastan, Nourison, Oriental Weavers, Couristan, Dalyn, Loloi, Momeni, Radici, Bashian, Central Oriental, and Bokara Rug Co. are our top suppliers."
Prominently featured on perpendicular walls at the Herald Square store is Andorra by Oriental Weavers, one of the newest collections at Macy's.
Asked what he looks for when attending markets, Mink said: "First are new collections from my existing suppliers, and secondly we look at color and design trends. We generally see the same suppliers at both Atlanta and Las Vegas, but I take different people to each market. My west coast regional team will come to Las Vegas because I want their thoughts on color and trends for their stores, and obviously the East Coast team comes with me to Atlanta for their take on trends in their stores."
Kenneth Mink also shops the New York Home Fashions Market, and attends NY Now for color and design trends.
A feature wall showcases Karastan's Spice Market collection, which Mink says is "one of Macy's best-selling collections."
Evolving Consumer
Mink said the area rug business has changed drastically since the company started merchandising for Macy's East.
"Back then, the business was all about hand-knotted rugs that would last a lifetime," Mink said. "All of that is out the window now. Today, with the looks you're getting with machine-made rugs, it's hard to tell them from the old hand-knotted rugs."
Customers are looking to change their rugs every two to five years, Mink added.
"The customer doesn't want the rug to last a lifetime anymore," he said. "In some cases, the rug is more of a disposable item. Today's customers want to change all of their decor more often, including rugs."
Designed by the Kenneth Mink team to engage customers, innovative suspended rounders and video create excitement at Macy's South Coast Plaza in Costa Mesa, Calif.
Bohemian-chic rugs make a bold statement at Macy's in Southdale, Minn.