The Rug Category Is Booming—But Most Buyers
Are Missing the Margin
The rug category is having a moment. According to 2024 home retail reports, area rug sales jumped 19% year-over-year, making it one of the fastest-growing segments in the home décor industry. What was once considered a finishing touch is now a foundational driver of store layout, cross-category sales, and customer engagement. Consumers are actively looking to upgrade their living spaces with decorative rugs, modern runner rugs, and eco-friendly carpets. From earthy-toned jute rugs to layered Bohemian-style floor coverings, demand is rising across multiple demographics. But while sales are up, most buyers are quietly losing money where it counts—in their margins.
Rug Sales Are Soaring—But Retailers Are Quietly Losing Money
At first glance, it’s a success story. Customers are buying more rugs than ever. Stores are moving units. But behind the scenes, many retail teams are facing a silent margin bleed.
Why? Because most retailers are still treating rugs as afterthoughts—stocking them late, sourcing them cheaply, and placing them poorly. They’re focused on volume, not visibility. On price, not presence.
And it’s hurting them more than they realize.
Poor procurement planning is forcing many retailers to buy rugs that don’t align with consumer trends—leading to overstocks of outdated styles, understocking of in-demand SKUs, and missed seasonal windows. These delays often result in deep markdowns and higher return rates, cutting directly into what should be a high-profit category.
The Numbers Behind the Margin Collapse
While rug sales are booming, up to 28% of potential margin is being lost due to slow procurement cycles, inaccurate assortment planning, and lackluster display execution.
Even more alarming, return rates in the rug category are up to 12% higher than in comparable home décor segments. This is often due to size mismatches, poor finish consistency, or color deviations between samples and final products.
Procurement teams that leave rug buying to the last minute are three times more likely to miss peak season sell-through, resulting in stockouts of fast movers and markdown pressure on slow movers.
It’s not just a missed sale—it’s a category-wide cascade. Because when the rug underperforms, everything built around it—from poufs to planters to wall décor—loses impact.
Why the Rug Category Deserves a Lead Role
In today’s home retail environment, rugs are no longer just products—they’re profit multipliers. They act as anchor pieces for full-room stories, influence the perception of neighboring SKUs, and drive complementary purchases in cushions, throws, and lighting.
Retailers who treat rugs as core SKUs are already seeing the upside. For instance, a U.S. furniture chain that moved rugs to the top of their category planning process saw a 47% increase in average basket size. Another European retailer integrated rugs into their entry zone visual merchandising and saw customer dwell time increase by 28%—translating into higher attachment rates across home accents.
The message is clear: rugs aren’t side characters. They’re the starting point of the sale.
How Global Base Helps Retailers Turn Rugs Into Margin Machines
At Global Base, we’ve reengineered the entire approach to rug procurement—because we’ve seen what happens when it’s done right. Our programs are built not just to move units, but to maximize profit, elevate displays, and de-risk category planning.
Here’s how we do it:
What Happens When Rugs Are Treated Like Heroes—Not Fillers
Retailers who elevate their rug strategy unlock measurable results. A mid-tier Canadian retailer who partnered with Global Base saw:
They didn’t increase their price. They increased their precision. And in the rug category, that’s where the margin lives.
What Most Buyers Still Get Wrong
The biggest mistake retailers make? Thinking rugs can wait.
When procurement teams finalize rugs after major categories like furniture or lighting, they limit their ability to build cohesive displays and miss out on attachment sales. Worse, they often rely on outdated supplier catalogs or one-size-fits-all assortments that don’t reflect real-time market trends.
Meanwhile, Global Base clients are locking in exclusive, shelf-ready designs, built for display flow, pricing flexibility, and category growth.
They’re not chasing trends—they’re leading with them.
Don’t Leave Margin on the Floor
The rug category is evolving fast. What was once an overlooked product is now central to the seasonal sales story. But while demand grows, only the retailers who approach rugs strategically—like a core category, not a convenience buy—will capture the full margin potential.
At Global Base, we help retailers do more than stock rugs. We help them build profitable programs from the ground up—designed to move faster, sell smarter, and create visual stories that convert.
Email [email protected] to learn how we can design your next rug collection, tailor-made for display success and built to protect your bottom line.
