Airbase Carpet's Igor Yakovenko remains bullish on rug sales for the remainder of 2024.

NEW CASTLE, Del. -- Igor Yakovenko, Airbase Carpet's area rug buyer, will travel to Las Vegas Market to stock up on area rugs for the 14 stores under his purview, on the hunt for the freshest designs, product innovations and fashion.

And while 2024 has been a more challenging year for hard and soft flooring retailers, especially in comparison to the COVID-shutdown home remodeling heydays which kicked off in late 2020, area rug and broadloom sales are now measuring up to pre-COVID growth levels. Or …. continue to stabilize at pre-COVID year-over-year growth levels.

Yakovenko remains bullish on the category, pointing out that not only is Airbase adding a new 50,000 square foot Philadelphia-area location later this year, but it has also added four new locations since 2017.

"We were off by a couple of points in 2023, but the margins were healthy," Yakovenko said. "But I'm happy because after some really high highs, this was a return to normal. This year, I'm shopping for more value because it's an election year, which is usually a little choppy.

"You have to give people a reason to buy right now. So, we will have specials, close-outs, heavy promotions -- that's what is moving the business this year."

In Vegas, Yakovenko will be shopping for mid-priced rugs; he prefers not to offer entry level price points and wants to ensure that customers receive a higher-quality product they will be satisfied with. He also prefers products that aren’t available online. But he does make room in his stores for more affordably priced products that offer freshness and newness to the category.

Each Airbase Carpet location, which includes the Lomax and Airbase retail brands, carry an average of more than 300 area rugs, with 8x11s showcased on racks. The bulk of the company's business is done in the $400 to $700 range for an 8X11.

"People still want fashion, despite what's happening in the economy," he says. "We see customers looking for a deal and promotions, and we did great with our Fourth of July sales. Promotions work because customers want fashion and quality but also a great price."

TOP PERFORMERS FOR 2024


Dreamy Shag from Nourison is a customer favorite at Airbase Carpet for its ultra-plush textured styling. Shown, DRS09

For value-driven buyers, softness remains a favorite choice, and one success story has been Nourison's Dreamy Shag lineup, introduced several years ago but refreshed regularly with new motifs and colorations. "We do well with polyester shags and softer colorations -- Dream Shag has been great for us."

Airbase Carpet shoppers have given a thumbs up to the neutral colors, ultra plush pile and texture of Dreamy Shag collection by Nourison Home, with DRS09 a bestseller. A more step up Nourison introduction that also resonates with customers is the company's hand-tufted wool Graceful collection, which added fresh abstract patterns in neutral colorations that have been a hit at Airbase.

"Definitely a growing category for us has been wool hand-tufted and hand-loomed rugs from India," Yakovenko explains, noting that his customers like loop pile textures in natural colors. "They also like the white whites, a pure white in the latest hand-loomed designs, “which is really hard to achieve."


Wool tufted products are trending at Airbase Carpet, and Nourison's Graceful (GRU1) is a top-seller.

Shoppers also continue to seek out quality transitional designs, which remain a perennial favorite at Airbase Carpet. Among the favorites are the latest introductions to Oriental Weavers' long-running top-selling Maharaja and Aberdeen collections, which was expanded in 2023, adding a new creel for each collection’s top-selling design. Both collections are woven of exceptionally soft, space-dyed polyester in a high-density, low-profile construction with minimal self-fringe.


Oriental Weavers' Aberdeen and Maharaja are a customer favorite at Airbase Carpet. Shown Maharaja 70e

"These collections are a really good product that looks good and feels good. OW also now has Hayden, which is more modern, in the same colors, and it is doing really well."

Hayden is woven of space-dyed polyester with a high-density low-profile construction and the added detailing of small, incorporated fringe.

Other top performing rugs include higher quality product from Dynamic Rugs, among them the Hudson and Oct0 collections, both from Turkey.


Hudson from Dynamic Rugs is a favorite for its textured motif and neutral colorations at Airbase Carpet. Shown, 1454-890

AREAS FOR GROWTH

Promoting Printed Abstracts

Finally, the newest printed designs from Dalyn, which invested heavily in the category over the past year plus, is also doing well. "They have lots of sizes and looks, with quick delivery." Among the popular choices is the company's Odyssey lineup of abstract patterns. These rugs feature a soft, plush 100 percent polyester microfiber pile, with premium canvas backing. “And the advantage of printed designs is you are not limited by creel, and you can produce one rug at a time and move on -- it costs nothing extra. This is one area there is a lot of room for growth."

Championing Traditional Rugs

Interestingly, he also views the traditional rug category as another area for potential growth and is seeking newness from area rug manufacturers. He has been supporting several long-running traditional collections and says that rug vendors should continue to invest in these tried-and-true offerings, adding one or two fresh colors to existing patterns to refresh the looks while keeping true to the rugs' classic tradition.

"I have been supporting some of the older rug collections and color palettes because you can't find them anymore. Customers want something basic like the classic million point with nice clarity and construction."

Differentiating with Direct Imports

Finally, another option Yakovenko employs to differentiate his selection from those of competitors and the internet, is to import directly. "We develop multiple programs from overseas in different qualities and the advantage is it is exclusive. We take on more risk, but if you know what you are doing it can be worth it,” he explains. "It is easier to have exclusive product than to compete with everyone else, and you can't police the internet."

Heading to Las Vegas Market, July 28-Aug. 1, Yakovenko expects foot-traffic to be down not only at the show but also in his stores, which is typical in summer. But he isn't too concerned. “Election year is always uncertain, and most customers are going to be more conservative with spending. But at some time, life goes on. They will be buying, and they will go to someone who offers fresh selection, who continuously brings in new colors, styles and fashions -- that's the way to survive now."

-- Learn what other flooring players had to say in RugNews' mid-year Flooring Dealers Report