New emphasis on rugs - Bed & Bath - HomeMarket Trends Supplement

Discount Store News, April 1, 1991 by Faye Brookman

New Emphasis on Rugs

As millions of Americans hop out of their showers every day, chances are they are stepping onto a higher-quality bath rug than they would have just five years ago.

Today's new emphasis on the bath has had a positive impact on the $500 million (retail sales) bath rug business as customers seek richer, more luxurious rugs to pamper their soles and to complement upgraded bathroom decors. As one supplier aptly put it: "Who wants a cheap $2.99 rug next to a Roman soaking tub?"

The current state of the economy suggests that consumers will continue to turn to accents such as bath rugs and shower curtains as a method to give a fresh look to bathrooms.

"It's more economical to update with accessories," said Victor Powell, marketing manager, floor coverings at Hoechst Celanese Corp.

Recent HomeMarket Trends research paints a bright picture for bath rugs - 73% of those redecorating their bathrooms indicated they would be in the market for a new bath rug this year.

Discounters plan to take advantage of the demand by making rugs more visible in their stores. At Kmart's newest format, for instance. the bath department repositioned closer to the front of the store.

At Ames, bath mats are also highly visible to capture consumer interest. "Indeed," said Robin Stuart, bath buyer, Ames Department Stores, "the business is driven by replenishment and impulse." Despite the promising news, the bath rug industry is in the midst of a rampant consolidation. Most recently Springs announced plans to acquire another major player in the business, C.S. Brooks.

The acquisition comes at a time when the business is experiencing sales growth, but plagued with flat unit increases. Vendors are fighting to grow their business by grabbing larger market share.

The key to survival, vendors report, is to differentiate themselves from the rest of the pack. For some, such as industry leader Aladdin, that's meant offering customized retail programs and more intense efforts to offer the latest materials. Suppliers, such as Georgia Tufted Sales, Inc., have also implemented sophisticated systems to handle Electronic Data Interchange.

In the last year, 1005 Antron has revolutionized the business because it offered a cleaner, "better hand" feel that's been embraced by consumers. Other new fiber characteristics such as Hoechst's Dolan, a leader in European products (as seen by displays at the recent Heimtex exhibition), are set to become bigger players in the United States as consumers continue to seek better products.

Dolan, a 100% acrylic fiber, has a clean surface and lends itself to vibrant colors. There are also Dolan/Trevira blends. Hoechst has also kicked off a three-year limited warranty for its Trevira stain-resistant polyester. Fieldcrest Cannon is the first bath and accent rug to offer styles with Trevira carrying the warranty.

Mazouz Hussein, merchandise manager of domestics for Hills Department Stores, said customers aren't always aware of the type of content such as 1005 Antron.

"But they can tell by the look and feel and so far it's been good for us," he said.

Customers also appreciate the quality of tabletop construction and Hills carries a racetrack rug from Maples. Some retailers believe there are some names with consumer recognition. Caldor, for instance, promotes DuPont nylon in its bath rug advertising. While many of the major suppliers undergo consolidation, retailers are also paring their vendor lists (many only stock two or three lines now) in an effort to give customers more of want they want - color. "Over the last 18 months, we re-did our program to reduce sku's, but go deeper into color," offered Hussein.

Similar tactics are being employed by Kmart, WalMart and Caldor. Instead of offering multiple sku's of shapes and styles, retailers are sending a clear message to shoppers that they can satisfy any color demand. The discount customer, retailers added, is more adventurous when it comes to color today.

"We're seeing a real surge in green," added Ames' Stuart. Retailers also expect darker jewel tones to replace the lighter colors that have dominated for the past few years. According to Edward McNamee, president Georgia Tufted Sales, color palettes are shifting from pastels to deeper tones. Even black is selling better for bathrooms, he added. Blue and wine, however, remain the fastest movers in the mass market, according to Tom Draves, senior merchandise manager for Jamesway. Although solid colors represent 80% of the bath rug business, some sources think multi-colored products will play a bigger role in the '90s.

At Maples Industries, John W. Maples III, advertising director, has seen greater interest in multi-dye items. Georgia Tufted's McNamee agreed and reported several of his accounts are adding multi-colored rugs as an option to solids. And, although the majority of the business is in 21-inch by 40-inch oblongs, many sources expect European-inspired shapes such as seashells, round shapes and geometric shapes to start grabbing market share.