Huck Finn's has 4th big in-store Capel Rug gallery
By Lissa Wyman -- Furniture Today, May 27, 2007
Albany, N.Y. — Huck Finn's Warehouse & More here has opened an 8,500-square-foot Capel Rug gallery in its 400,000-square-foot home furnishings complex.
Store President Jeff Sperber worked closely with Capel executives for three months to create the store-within-a-store, which opened in late March.
Capel Vice President of Marketing Bud Young said the gallery contains "the core of the Capel line," with retails from $99 to $1,900 for a 6 by 9 size.
The gallery has a dedicated staff, and is adjacent to the store's regular 3,000-square-foot rug department.
Huck Finn's has sold Capel rugs for over 24 years, carrying a large selection in its regular rug department. "We've had a lot of success with the rug category," said Sperber. "Our customers want to step into a store and know they can buy a rug for every room of their house."
He said Capel provides assistance with employee education and training, and offers an advertising program that includes print, TV and direct mail. "All the elements of operating a successful retail operation are in place," Sperber said.
The store's Capel shop features lifestyle signage and a kids department, including a play area with a school bus.
Huck Finn's also has several furniture galleries, including a 10,000-square-foot Bassett gallery, a 6,000-square-foot Broyhill area and a 2,500-square-foot Natuzzi gallery.
Capel's Young said the rug resource aggressively is seeking to open large in-store galleries in furniture stores, and rug and floor covering specialty stores. Customized designs are available for galleries from 3,000 to 15,000 square feet, and advertising support and online ordering are available on Capel's B2B Web site.
"The in-store gallery represents a true partnership with the store owner," said Young. "We provide a great deal of help, including developing the proper merchandise mix based on local demographics. But we also expect a commitment from the store."
He said the retailer's investment runs from about $150,000 to $500,000, depending on the size of the gallery. The Huck Finn's gallery is Capel's fourth, and largest, in the store-within-a-store program. Others are in Gerondale's, Green Bay, Wis. (4,000 square feet); Furniture Options, Goshen, N.Y. (5,000); and Burgan's, Spokane, Wash. (7,500).
Beginning in the mid-'80s, Capel began installing galleries in furniture and floor coverings stores around the country, many about 1,000 square feet. "They were good for their time, and some are still in operation," said Young. "Now it's time to expand on that concept."
The company also has nine company-owned and franchised Capel Outlet freestanding stores of about 13,000 square feet where it doesn't have much market penetration.
"But we feel the real growth opportunity is with the in-store gallery approach," said Young. "The galleries offer the opportunity to generate more sales per square foot by cross-merchandising with other categories."
He said furniture stores can achieve $200 to $300 in annual sales per square foot using the gallery approach to cross-merchandising, whereas the national average for furniture stores is about $150 per square foot.
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