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07042005 The Observer Home Goods

7/7/2005
The Observer
 
HOME GOODS CHAIN GETTING CLASSY,
 BUT RUGS ARE WEAKEST PART OF MIX
 

HOME GOODS
Bedford, MA

Overall Rating

* * * 

 

rugnews.com ratings

* * * * * World Class
* * * *    Very good
* * *      Mediocre

* *        Poor
*          Awful
none   Worse than awful

 

 

By Lissa Wyman

BEDFORD, MA -- Home Goods is looking more like a department store and less like an off-price hodge-podge.

So why the mediocre rating?

Although the company has made great strides in the rug category in the past few years, it is still one of the weakest areas of the store. Drab, tired looking merchandise, limited selection and non-existent service add up to a less than satisfying rug shopping experience.

That's the impression we got from a recent visit to Home Goods in suburban Boston, near TJX corporate headquarters in Framingham, MA. We have been following this store since the Home Goods concept got up and running. It was one of the first in the chain and seems to function as a laboratory or test site.

 


Home Goods is looking more like a department store and less like an off-price merchant.


Throughout the store, the merchandise presentation was clean, crisp and orderly. The lighting was bright without being harsh. The aisles were wide and uncluttered. The colors are this season's up-to-the-minute pinks, greens and blues. Price tags, often elusive in these types of stores, were fairly easy to find.

 


Home Goods label  is clear, crisp factual.

Come to think of it, many rug specialty stores could earn a lesson or two from the way Home Goods labels its rugs.  Every rug was consistently labeled with a  large, easy-to-read tag that was firmly attached to the rug. The no-nonsense label was straight to the point: country of origin, construction, fiber content, price and comparative price. It also included different sizes also available. In a self-service environment, it provided the information the consumer needs to make a somewhat informed buying decision.

Of course, being in a self-service environment, there was virtually no possibility that any informed sales person might appear to answer a simple question. "Errrr. Excuse me... what exactly is a hand tufted rug?"

A big rolling ladder was situated plop in the middle of the rug department. It provided a huge impediment for browsing the rack, but no one bothered to come around and move it aside or use it for its intended purpose. We also looked frantically around for a sales  or stock person to drop a rug to the floor.

This is not a new problem for Home Goods. In many of the stores, we have had to stomp back to the customer service desk to ask the person in charge to send someone back to help out. The request is always cheerfully acknowledged and another cheerful person eventually appears to unclamp the rug. But by the time all this has come to pass, the  buying ardor has cooled considerably.

 


HomeGoods now displays rugs on a 9x12 rack.

Home Goods, like many other rug merchants, is beginning to display more large size rugs. A  large 9x12 rug rack with approximately 50 arms  provided a focal point at the back of the store. I wish I could report it was a colorful magnet. Unfortunately, most of the rugs were so dark and muted, you couldn't even see the patterns clearly until you were right on top of them. Because there was only one rack, many arms were used to display several different sizes, creating a cumbersome layered effect.

The assortments of styles was heavy on the traditional Persian rug designs. While there were some golden and beige oushaks, most of the styles tended to be dark and heavy. The overall effect was old-fashioned and stale. The few contemporary designs might have livened up the merchandise mix, but they were in such muddy colors, it was depressing.

In fact, the entire rack made me feel depressed. I was totally unmoved to buy.

Prices were so-so. They ranged from about $299 to $700 or $800. There was heavy emphasis on hand tufted construction. About 25% were machine made and about 10% in hand knotted construction.

 


Folded accent rugs located next to the room
 size rug department.

While the room size rugs were dreary, the small accent rug department was fairly spritely. But the department was small. There were some blah looking beige and brown tufted throws and  bordered rugs  which my cats might like for napping. About the best that could be said for them were they were cheap ($12 to $20) and might suffice to cover a bare spot on the floor. There were also some patterned hooks and striped tufted rugs. The patterns seemed to be fixated on fruits and vegetables and  tropical looks (remember them?)

One of the problems with accent rugs is proper display. Like most other mass market stores, Home Goods folds these rugs and shoves them into shelves. It's impossible to see what they look like unless you unfold them. Unfortunately, several hours of that kind of consumer activity can result in a sloppy looking department by day's end. Obviously, Home Goods is vigilant in its housekeeping. Late in the afternoon, the shelves were nearly pristine.

 


China and glassware department

One of the reasons Home Goods is now a billion-dollar retailer is that it constantly re-invents itself. I have visited this store several times in the past seven years, and it has changed from a sloppy hodge podge to its present state as an almost-department store.

 Edmond English, president and ceo of The TJX Companies, Inc., the parent company,  is still working on the concept. Last year, he expressed disappointment with Home Goods' 1% sales growth. Instead of blaming the economy and sluggish home furnishings sales in general, he vowed to improve the chain's merchandising presentation and buying skills. Obviously, top management is committed to excellence.

Yet I am still disappointed. When consumers buy knick knacks and china and picnic supplies, they can easily serve themselves. A rug -- even a cheap rug -- requires service and knowledgeable sales help.

And, with all the beautiful rugs now on the market, why does Home Goods persist in buying such bow-wows?

Just one more thing. If I were the manager of a large mass market store and saw a middle aged woman running around taking pictures and ostentatiously writing notes, I would wonder what was up. Why didn't anyone say anything to me?

About Home Goods
HomeGoods, a chain of off-price home fashions stores, currently operates 229 stores. HomeGoods offers accent furniture, giftware, rugs, bed and bath accessories, lamps and seasonal merchandise at The chain operates in a stand-alone and superstore format. The superstores couple HomeGoods with T.J. Maxx or Marshalls. Stand-alone HomeGoods stores average approximately 27,000 sq. ft.  In 2005, HomeGoods expects to add 20 stores. Ultimately, TJX  expects to operate 650  HomeGoods stores in the U.S.

Parent company TJX Companies, Inc. is a major apparel and home fashions off-price retailer. TJX's off-price concepts include T.J. Maxx, Marshalls, HomeGoods, and A.J. Wright in the U.S., Winners and HomeSense in Canada, and T.K. Maxx in Europe. Bob's Stores is a value-oriented, family apparel retailer, with stores in the northeastern U.S.

In fiscal 2005, which ended Jan. 31, Home Goods had $1 billion in total sales. Corporation-wide, TJX had revenues of $3.5 billion in  home fashions categories.

THE REPORT CARD
HOME GOODS
 

Subject

Grade

design and color selection
Boring.


 * *

 

range of prices
Compact range covers the low middle to upper middle bracket.


  

  * *  

 

 

construction selection
Top heavy in hand tufted.

 

 * * *

 

sales help:
 product knowledge


What sales help?

 

 

sales help:
design and color knowledge

 

  What sales help?

 

 

product presentation
One large hanging rack, one shelf for accent rugs

:
    
*  *  *  

  

 

Enjoyment level
Rugs are the weakest part of a store that is always exciting and constantly changing.


 
*  *  * *

 

 

We welcome your response: email us at LWyman@rugnews.com

7.13.05

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