AS FEATURED IN BUSINESS IN FOCUS JULY 2012
One in a Million
2 2 JULY issUe | 2012
3 3 BUsiNess iN FOCUs
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By David Barratt
WHEN purchasing a rug, consumers want to feel the
fabric between their fingers and experience the
true to life vivid colours and patterns. This desire
makes rugs one of the few remaining consumer items that
need to be seen and experienced before being purchased.
Choosing a rug is still very much a “touchy feely” process as
Craig Wicks, founder and Managing Director of Rugs a Million
aptly puts it.
Craig’s company, founded 20 years ago in Queensland, has
grown to encompass 29 bricks and mortar retail locations sup-
ported by a powerful online presence, placing the company
as Australia’s top of mind name when consumers are looking
for new rugs for their homes. “After a couple years,” Craig
says, “we decided to expand from the Gold Coast to Brisbane
and area.” Ever since, the company has continued to grow
in a reasonably fast, but controlled manner, moving into its
third state by acquisition, with the purchase of an existing rug
company in Adelaide.
Rugs a Million has experienced measured growth through
much of the company’s existence, developing strong inter-
national buying power, and after a slow period due to the
gloomy retail market situation, is experiencing renewed
growth, opening several new locations in Australia.
“We focus totally on our staff. Of our 150-odd staff, more than half have been
with us for more than ten years.”
Thinking back to the founding of the company, Craig Wicks
identifies one major trend as the impetus of growth – the
decline in popularity of wall-to-wall carpet solutions in Aus-
tralian homes. “The timing was quite right as wall to wall car-
peting was losing popularity to hard floors. I saw the market
evolving almost overnight,” he says of his decision to leave
the carpet market and move into rugs as the primary focus
of his business. “As soon as you get hard floors in a house,
you need rugs aesthetically, acoustically, and to keep warm
in the winter.”
The trend toward hard flooring continues to grow as Aus-
tralians follow the fashion of America and Europe. “There is
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still growth in the marketplace as hard floors become more
popular, so I see no reason why there won’t be more growth
in this country.”
Though Craig founded Rugs a Million and is Managing Direc-
tor today, he credits the synergy of three key minds and their
complementary skill sets with providing the stable founda-
tion that has allowed the company its continues growth and
success in the market.
Craig himself brings a keen marketing and advertising experi-
ence to the table, while the company’s General Manager Paul
Mifsud brings a wealth of experience in the rug retail industry
and a passion for the product. All of these skills are tied to-
gether by the accounts department, who work to keep costs
down. The three key members work together, meeting each
Monday to share ideas and keep their finger on the pulse of
the company, the consumer, and their business.
And business is good, operated with a strong philosophy
of valuing staff, creating a second to none customer expe-
rience, and understanding the ever changing fashion of the
rug retail industry.
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“We focus totally on our staff. Of our 150-odd staff, more than
half have been with us for more than ten years,” says Craig of
the business’ unique company culture. This longevity can be
credited to the positive work environment inspired by Craig’s
leadership of the company, as well as staff commitment to
remaining knowledgeable about the products and provid-
ing excellent customer service. “We really pride ourselves on
making our customers number one while focusing on the
simple basics of good reselling.” Customers are indeed enjoy-
ing their shopping experience at Rugs a Million, benefiting
from the service and selection provided by the company’s
well trained and knowledgeable staff.
“We pride ourselves on making our customers number one.”
Rugs a Million stays at the top of the marketplace by ensuring
that its rugs are current, fashionable, and of high quality for
its customers. While offering the highest quality, handmade
traditional Persian style rugs, Rugs a Million also designs and
imports all the latest fashions from around the world to meet
the tastes of all of its customers. “Our buyers are up to date
with the colours and fabrics and designs most desired by
today’s consumers, and we make sure we have the range of
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rugs that people want,” says Craig, a range which is second to
none in the marketplace.
The company’s user friendly five year warranty and money
back guarantee is also very appealing to choosy customers,
as is the business’ policy of allowing customers to bring rugs
home to give them a try.
“We’ve gone through a consolidating era and are moving into a growth sector
through the toughest retail times our country has ever known.”
“Today’s consumers are very well informed because of the in-
ternet,” says Craig, “and we ensure that when customers come
in they get good solid product knowledge and old fashioned
service.” The company’s web store, though it accounts for
only about 2 per cent of sales, is a great way for customers
to get to know the product before they make their way into
any of the many physical retail spaces the company operates.
“We embrace the website as synergy, not an opposition. It’s
one form of a driver to get customers into our stores,” says
Craig of the role played by the company’s web presence. “We
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benefit in that we do not have the internet as competition
because rugs are still a touchy feely purchase and colour is
not represented accurately on the computer screen.” Craig
expects the company’s web store to continue to grow, but
does not anticipate it forming a significant part of the com-
pany’s business in the near future.
The company also attracts customers to the store with its
annual television marketing campaign based around the
seasons. Often, customers who see the television ads are
prompted to research products on the website before ac-
tually entering a store to make their purchase. “We run a
very strict advertising campaign annually, based on the
seasons, that allows the Rugs a Million name to be foremost
in our market.”
The company has resumed growth generally despite the
recent dip in national markets that businesses have faced
across the board. In 2008, the company understandably took
a fair hit as markets fell, but with strong leadership, Rugs a
Million has been able to navigate the market successfully
where others have not.
“At the end of 2008, this company did not sit on its laurels
– we reacted immediately to the national financial situation
by cutting off every bit of dead wood the company had,
including retail locations.” Craig felt that to remain com-
petitive, it was important to make the company as lean and
strong as possible.
“Rugs a Million stays at the top of the marketplace by ensuring that its rugs are current, fashionable, and of high
quality.”
“I could sense tough retail times ahead, so we worked to be
safe and survive anything the economy could throw at us.”
The company has not only survived this major test, but
as of the 2011 financial year, is experiencing real growth
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and increased profits. “We’ve gone through a consolidat-
ing era and are moving into a growth sector through the
toughest retail times our country has ever known.” Even in
Queensland, an area Craig says has been hit particularly
hard, the company’s four new retail locations have all had
very successful openings.
Although Rugs a Million has manoeuvred itself to the top of
the rug pile, so to speak, Australia’s rug retail industry has suf-
fered generally with fewer imports each year and consumers
buying cheaper rugs. “The industry has bottomed out in my
opinion, and as soon as a little bit of confidence has been
restored in the market sector, sales will increase considerably
as a ‘catch up period’ ensues.”
Rugs a Million imports about two thirds of its stock directly
from overseas wholesalers, and the company has built strong
relationships with its vendors, enabling it to amass extensive
buying power. “We probably import 150 containers a year,
which makes us a serious customer for many manufacturers. I
don’t believe anybody can buy better than us so we can keep
ourselves competitive in a tough retail environment.” Rugs a
Million uses its buying power to pass on significant savings to
customers who are hard pressed to find a better price for rugs
anywhere in the nation.
Going forward, Craig sees continued measured growth and
new successes in the financial year to come, as the company
projects another increase in profits over last year. Planned
growth in its physical locations as well as in the web side
of the business means that Rugs a Million will be moving
even more rugs this year than last and expanding across
the nation to serve more customers with its supportive,
customer-centric experience.
675 Victoria Street | Abbotsford VIC 3067 | Phone: 02 8412 8119 | ABN 93 143 238 126
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