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11.16.04. The Observer Home Depot Manhattan

By Lissa Wyman
11/16/2004

 For more retail reviews, type in the words The Observer in the Quick Search box.

Retail Review:
 N
UTS 'N' BOLTS MEETS LA-DI-DA
 AT  NEW MANHATTAN  HOME DEPOT
 

 


Display windows? Home Depot? Anything can happen in Manhattan.
 


The Home Depot
New York City
 

Overall Rating

* * *

rugnews.com ratings

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

* * *      Mediocre

* *        Poor
*          Awful

none   Worse than awful

 


By Lissa Wyman

NEW YORK -- The new Home Depot store in  Manhattan  combines  the  Nuts-n-Bolts of Home Depot with the La-Di-Da of Home Expo.

Are we seeing the future? If this urban HD formula flies, it could mean an interesting new format for Depot's approach to home furnishings retailing.

The multi-level store is located in a freshly painted vintage cast iron building on 23rd Street between Fifth and Sixth Avenues. With Bed, Bath & Beyond, Circuit City, TJ Maxx, Hold Everything and Whole Foods as neighbors, this previously blah neighborhood has emerged as the city's hot big-box retailing district.

The store is hardly what you'd expect from the hard core utilitarianism of Home Depot. In Manhattan, every department from ready-to-assemble furniture to plumbing fixtures to  lighting to the garden shop is filled with fancy-schmanzy top-of-the-line merchandise. More like Home Expo, but without the snooty attitude.

Come to think of it, nuts and bolts and hammers and two-by-fours are pretty difficult to find at the New York store.

Rugs, on the other hand, smack you right in the face.

The first impression of every customer entering the store is a massive display of  hanging rugs.  Front and center are about 20 arms of Feizy hand knotted rugs with price tags up to $7,999 for 8'6" x 11'6" size (why quibble, let's call it $8,000).


This is Home Depot? $8,000 hand knotted Feizy Rugs greet customers at the front
of the store.

The entire floor covering department takes approximately 6,000 square feet  with about 2,500 devoted to various types of rugs.

There are approximately 400 hanging 9x12 and 6x9 rugs. Around the corner from  the hand knotted rack are two more racks of  moderately priced machine made and hand tufted rugs retailing for $199 to $599. By the way, all the racks were electrically operated for easy "drop." If you could ever find anyone to help you, of course.


Hand-made rack


Wrapped-to-go rugs.

Tucked behind the 9x12 racks are vertically stacked wrapped-to-go 5x7 machine made rugs in the $250 to $300 range.

In addition, there are several roll runner displays and  a large shelf system for accent rugs, bath rugs, decorative indoor  mats and welcome mats.

 


Accent and bath rugs.

In total, there are probably more than 1,000 rugs of various types on display. (Frankly, my head was still spinning at the thought of Home Depot selling $8,000 rugs, so I didn't get an accurate count.)

Brand names in the rug department include Feizy, Nourison,  Kathy Ireland by Shaw Living, Central Oriental, Oriental Weavers of American, Mohawk Home, Maples, Beaulieu (aka Springs).

 


Every customer coming into Manhattan's Home Depot must walk through the rug and floor covering department.

Beyond the rugs, there is broadloom carpeting, hardwood flooring and ceramic floor and decorative tiles. Flooring of all types covers about 6,000 square feet of the Home Depot store.

The rug department at  Home Depot Manhattan is a mix of brilliance and stupidity

Let's start with the stuff that's absolutely  brilliant.

  • Lighting. The primary purpose of store lighting is the illumination of  merchandise. At Depot's new store, the  combined incandescent and fluorescent lighting does that job admirably without calling attention to itself.  It has none of the pretentious theatricality we see so often in department stores. The result is an evenly suffused light that looks downright natural. I kept looking up to the ceiling to see if there were skylights up there. There are no dead areas and no annoying bright-white spotlights.
     

  • Vertical Selection. Every type of rug imaginable is found in one area. When will other stores learn that consumers don't give a dang that one buyer is in charge of room size rugs and another buyer handles small rugs? That doesn't mean they have to be carried at different ends of the store. Why not give consumers an opportunity to shop for expensive and inexpensive rugs simultaneously? A cross-over large rug/small rug purchase is possible. Perhaps TWO purchases may occur.  Maybe there will even be an impulse purchase.

That's the brilliant stuff.

Merchandising

I'm not too sure that  displaying those $8,000 rugs at the front of the department is brilliantly risky or riskily stupid.

Maybe  no one even thought about it, so it could be just plain dumb.

There are precedents.

That kind of knock-em-dead merchandising has been used successfully  by Off Fifth, the Saks Fifth Ave. outlet chain. Consumers are presented with the most expensive merchandise at the front door and things gets progressively less pricey as you work yourself through the store.

Whether this philosophy works at Manhattan Depot is still to be determined.

We asked Jerry Weinrib, chairman of ABC Carpet & Home, what he thought about Depot selling high priced hand knotted rugs. "They're showing them, but are they selling them?" he replied. "At ABC, we sell them."

At the more --ahem -- popular price points, Depot has other problems. Lined against the back wall were $69  4x6  mystery rugs  rolled inside out  and hermetically sealed in plastic. What the face side of the rug looked like was anyone's guess. Perhaps a vendor could have printed a label showing the rug in a room setting? Naaaah.

Pricing

Home Depot stack and rack merchandising  has a way of making people think the chain has the low-low price on everything. That's brilliant.

In reality, prices are about average. Certainly one of a kind rugs in the $3,000 to $8,000 range for 9x12 are  what you would find in your friendly neighborhood service-oriented Oriental rug store. Hand tufted rugs for $349 to $700 are about par for the course, as well.

Kathy Ireland rugs from Shaw Living had retail prices of $329 in  the 5"5" x 7'11" size. (These Kathy Ireland designs are exclusive to Depot, by the way). Similarly, Oriental Weavers woven rugs were in the $279 to $399 range. Accent rugs were about $13 to $25 in 2' x 4' size. That's all within the range of manufacturers' suggested retail prices.

Same Ol' Depot Service

They can build the most beautiful store in the world, and fill it with classy merchandise, but unless  Home Depot does something about it's salesmanship, the retailer will never be better than mediocre.

When it comes to sales service, the Manhattan Home Depot is just like very other store in the system: Dreadful. (But at least the Depot kids smile. At Expo, they give  no service and they're uppity).

In the hand knot area, I heard one customer ask her friend, "Why are these rugs so expensive?  Is it the workmanship?€VbCrLf

Since the only sales person on the floor was selling a scatter rug in the back of the department, I guess she'll never find out.

Back there with the salesman, the customer was making a choice between two small rugs. One was a machine tufted scatter with a rubberized back for $20. The other was a small crewel  import for $35 without backing. The customer seemed to be giving himself a little sales talk while the salesman kept his mouth shut. The customer said he liked the looks of the crewel work rug, but needed the non-skid component. The salesman shrugged. Three feet away, there was a display of non-skid underlay.

The man took the $20 rug and went away.

The salesman went away, too.

The two women at the hand-knotted rack also went away.

I went away.

 


The Home Depot occupies a classic cast iron building in Manhattan's hot big-box retailing district.

THE REPORT CARD
Home Depot-New York

Subject

Grade

design and color selection


 *  *  *
The hand knotted Oriental rugs tended to traditional colors and patterns. The hand tufted rugs showed some contemporary spark. Machine made rugs were mostly brown.

 

range of prices


 *  *  *  * 
We got ya covered

 

construction selection

 

*  *  * 
Lots of machine made rugs and a good selection of traditional high end hand knots. Weak in hand tufted and under-$1,000 hand knots

 

sales help:
 product knowledge


One star is a gift because the kid smiled.

 

sales help:
design and color knowledge


(no stars)
A guy wearing an orange apron can give me design advice?

 

product presentation

:
 * *  *  *
 

The surprise of $8,000 hand knots gave this department an unexpected WOW factor.

Excellent integration of small rugs within the large rug department.  Hanging racks were organized by construction, which is serviceable, but unimaginative.

 

Enjoyment level


*  *  *  *  * 
The new Manhattan Home Depot has an extraordinarily high energy level. With multiple products reaching out to grab you, and plenty of other shoppers running around with you, you feel like you're at the center of the retailing world.

 

ED NOTE: Lissa Wyman, Editor and publisher of rugnews.com is filling in for The Observer, who is pouting.

 

To read more Rugnews.com retail reviews, type the words The Observer into the Quick Search box at the top of the page.

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