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Retail

Retailers Expect Pick Up in Area Rug Sales Heading into Q4

In this executive report, RugNews.com checks in with of a range of retailers from Nebraska Furniture Mart to Carpet Exchange to find out how area rugs are performing and to take the pulse of Q4 2024 expectations.

RugNews.com Editors
9/19/2023
image of rugs displayed in an NFM store
NFM continues to find success with its area rug assortment, and reports larger size rugs (8x11 and above)
are trending.


SPECIAL REPORT -- Coming off two stellar years fueled by the COVID-19 pandemic -- and despite a slowdown in retail traffic --rug sales have managed to stay on an even plane in 2023 heading into the fourth quarter.

That was the assessment of several leading flooring retailers with major stakes in rugs.

For Nebraska Furniture Mart, with three locations, rugs have bolstered its overall flooring business, according to Dave Chambers, NFM director of flooring. “Rugs continue to be successful because they are a quick, affordable way to refresh a room in your home, with little to no disruption to daily living,” he said.

Chambers said affordable handmade rugs, and machine-made rugs across all price ranges, are performing well and will be a focus for the rest of the fourth quarter. “The industry has been quick to respond to what consumers are looking for — neutral textures, simple patterns and bold colors, in a range of price points and constructions,” Chambers said.


Affordable handmade and machine-made rugs across all price points are top sellers at NFM.

There was more positive news at Carpet Exchange. With 19 locations in the Denver market, the retailer has relied on aggressive pricing and heavy promotion to lift the rug category year-to-date. “Rug sales have gained momentum going into the fourth quarter,” said Bruce Odette, president/CEO. “We are very optimistic that sales in this category will exceed last year with a strong fourth quarter.”


At Carpet Exchange, area rugs, displayed above in its rug gallery, are gaining momentum heading into the fall selling season.

Ditto for Marshall Flooring in Mayfield Heights, Ohio, which is on pace to match 2022’s record year for rug sales, led by the Kalaty, Kaleen and Nourison brands. “Rug sales are very strong,” said Matt Wien, principal. “The popularity of hard surface flooring and customers buying higher-quality goods are influencing sales.”

Marshall Flooring removed the majority of its 5x8 rugs and added larger format rugs (8x10 and 9x11) to great effect. “These sizes have been more desirable with our clients,” Wien said. “We’ve also added ‘White Glove’ delivery as an added service option where we will move furniture, set up the rug and cut the underlayment to fit on-site.”


Marshall Floorings shift from showcasing 5x8 rugs to only featuring larger sizes -- 8x10 and up -- has paid off.

At The Rug Rack & Home Décor in Chattanooga, Tennessee, rug sales accounted for roughly 50 percent of overall sales during the third quarter, a figure expected to increase to at least 75 percent in the fourth quarter. “What seems to be influencing sales at the moment are the people moving into our area who are needing new rugs in their major living spaces,” said Miriam Thompson, co-owner. “The second driving force is replacement rugs for areas which are being updated.”


Hadinger Flooring in Naples, Florida, which boasts the largest showroom selection of areas rugs in the state, has seen rug sales stay fairly flat compared to last year, “which we count as a win,” said Susan Hadinger, president. “We expect that the fourth quarter will be strong as people come back to Florida for the season. Our selection and knowledgeable sales staff set us apart from the other rug stores in town and we believe those factors are what continue to draw rug customers to our store.”

To kick off its fall selling season, Hadinger Flooring held its 13th annual Teacher Rug Giveaway, with many first-year teachers signing up for the event.


Hardinger Flooring kicks off the fall selling season with its 13th annual Teacher Rug Giveaway.

Rugs are nearly on par with 2022’s numbers at Baker Bros., which has seven locations in the Phoenix market. “There is more promotional activity going on this year as customers are looking for some lower-priced opportunities, so we have bought and sold more closeouts than before,” said Phil Koufidakis, president.

What's Trending at Retailers

Traditional patterns in updated colors as well as subtle, abstract designs that include a “bit of shimmer” are what’s trending at NFM, Chambers said. “We’re seeing demand for warmer, ‘moodier’ colors as well as larger size rugs such as 8 x 11, 9 x 12, 10 x 14 and above.”

Meanwhile, transitional styles continue to lead the pack at Carpet Exchange where patterns “with more movement and colors of blue and gray are the front-runners for us,” Odette said. “Super soft micro-fibers are very popular as well.”

Odette says he relies on his area rug wholesalers to keep the category fresh and on-point with consumer trends. And for instance Loloi's colors are "spot-on and resonate with the consumer’s decorating needs.” Oriental Weavers, meanwhile, drew praise for its million-point constructions, mostly in traditional patterns. “We are also seeing a lot of tremendous value in machine-made poly’s coming out of Turkey,” Odette added.

Hand-knotted rugs, whether Indian or Pakistani, remain strong sellers at The Rug Rack, according Thompson, who explained, “Most of these are of a traditional nature. I went to New York and New Jersey for the two rug shows, The Rug Show and COVER Connect. I saw some newer ideas; and, I also saw the repurposed stripped-down rugs again.”
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