IGNORING DOOM AND GLOOM, RUG & HOME
KEEPS EXPANDING AND DIVERSIFYING

Aanchal Agarwal is dwarfed by the size of the
"World's Largest Rug Rack" which displays
12 x 18 foot rugs.

By Lissa Wyman

ASHEVILLE, NC --  It's no secret that the economy is hurting, but Rug & Home continues to move forward by being more creative than ever.

The Asheville store has recently expanded with a 5,000 sq. ft. addition, bringing the store  to 20,000 sq. ft.  The addition creates more space on the selling floor, and also  features a spectacular custom-made  rack for 12x18 rugs  that is billed as "The World's Largest Rug Rack."

The huge rack system is being considered for inclusion in the  Guiness Book of World Records, Agarwal said. It was built and installed  by Display Corporation International of Chatsworth, GA.

Rug & Home was one of the first rug retailers to diversify its assortment to include furniture, wall art, window treatments and home accessories. The company continues to branch out into related areas, according to Aanchal Agarwal, chief operating officer and the youngest member of the family management team.

"It's very important to keep changing. When you're complacent, you lose your edge," she said.

Rug & Home features an eclectic merchandise mix.

"We now offer such items as pillows and throws,  and we are also adding more  contemporary styling in home accessories," she said. "You can't depend on rugs alone to draw in consumer traffic."

The rug category has never lost its starring role at Rug & Home, however.  With the additional space, rugs have become more important than ever. 

In the past, Rug & Home has displayed rugs using both swing-arm racks and stacks on the floor. With the addition, however, the stack have disappeared.

"We can now display almost all of our stock. on racks. We have between 15 to 17 large-size racks and each one holds 60 to 80 rugs," said Agarwal. The company also displays accent and small room size rugs on smaller rug racks.

The racks are placed throughout the store, so consumer are constantly in contact with rugs, no matter where they are shopping.

"It is much easier for the consumer to browse through  swing-arm racks. She can do it at her own pace. Many consumers are not comfortable with the idea of going through a stack with someone else flipping the rugs. Once you get to the bottom of a stack, it's also difficult to see exactly what the rug looks like," she said.

Another sales enhancing addition has been hardwood floors throughout the store. "This allows us to drop any rug in the store on a surface that shows them off to best advantage," said Agarwal.

Diversification has worked well for the Rug & Home stores. "By diversifying, we are able to bring in a new group of customers. And when they come in looking for one category, they'll also find something else they love," said Agarwal.

Rugs and furnishings belong together, Agarwal stressed. "There is no better way to showcase rugs than with furniture, and no better way to showcase furniture than with rugs," she said.

Agarwal admitted that Rug & Home has not been totally immune to the ravages of the national and international economy. "Our business is tough, just like everyone else's," she said, "but that doesn't mean we should stop promoting. When you pull back too much, that's when you crumble."

For the near term, Agarwal said the stores are focusing on both high end and value-priced furniture and accessories.

"We're featuring really unique gift items for $299 or less for the holidays," she said.

Creative merchandising extends to Rug & Home advertising and promotional activities. Rug & Home's energetic TV commercials are well known and recognized throughout the Carolinas, Georgia and Tennessee. Combined with advertising in Southern Accents and Southern Living, Rug & Home draws customers from the entire Southeast.

The Rug & Home Asheville store was founded in 1995 by Rakesh and Dolly Agarwal.  In 1998, the company opened a 70,000 sq. ft. store in  Gaffney, SC.

The company has twice been honored with AmericasMart's   Retailer of the Year (ROY) Award for retailing excellence.

Aanchal Agarwal, coo of Rug & Home with Lissa Wyman, editor and publisher of Rugnews.com.

11.12.08