Kukoon Rugs is on course to post record profits this year of just under £2 million as sales surge to £16.5 million, while projections for next year predict turnover to grow to £20 million and profits to climb to £2.4 million.
A key element of the company’s recent success has been a partnership with EZ Living Interiors in Ireland which it now wants to replicate with other brands across the UK.
The concession saw a selection of Kukoon rugs, including their exclusive collaborations and washable collections, on sale at all of EZ Living Interiors’ 21 stores.
The partnership has resulted in a more than doubling of rug category sales across EZ Living Interiors, with increased profitability per unit. The partnership also ensures that it is a significantly easier category to manage with zero requirement for ordering, merchandising or trading from the retail partner.
The strategic move follows a seven-figure investment in Kukoon’s online platforms which is providing the foundation for the company’s target of year-on-year growth of 25%.
Kukoon founders’ brother and sister, Paul Vallely and Clare Walsh believe brand partnerships of this nature have the power to help smaller businesses compete with large retailers.
Clare said: “I firmly believe that brands coming together to leverage each other’s core strengths, whether that’s retail or product, can provide a bright future for retail.
“In our partnership with EZ Living Interiors we brought our vast experience and expertise of the rugs market to the table while our partners provided retail space and phenomenal customer service in 21 stores and extremely strong footfall.
“These partnerships enable brands to stay true to their specialism and I believe in the next five years we will see an explosion in collaborations like this.
“We know some of the larger retailers face pressures on the origins of their products, therefore collaborating with smaller local retailers can be a win win for them too.”
With over 350,000 rugs distributed throughout the UK alone in 2024, Kukoon has now unveiled ambitious plans to establish a high street presence here with discussions underway with potential retail partners.
Co-Founder Paul Vallely said: “The EZ Living Interiors partnership has been a huge success and a similar concession approach in the UK would mean for the first time Kukoon customers there will be able to feel the quality of our products in-store before purchasing.
“We are currently in discussions with brand-aligned retail partners to give our customers the opportunity to experience our products and to buy in store, via a concession model.
“With more than 600 exclusive Kukoon rug designs, this is an exciting time for us, and we have an open mind in terms of agreeing a mutually beneficial retail partnership in the UK.
“Ideal partners will have a minimum of 10 stores, in the home furnishings and interiors space. They will share an innovative, forward-thinking mindset like our own, be design-led and ambitious while maintaining core values around customer service and a people-focus.”
The strategic move to the UK high street represents a significant investment for Kukoon, as the UK carpet and rugs market is set to surge in value with an annual growth rate of 10.37%, resulting in a projected market volume of US$109.20m by 2029, according to Statista.
Also, according to Statista, the UK has seen a surge in demand for sustainable and eco-friendly carpets and rugs, reflecting a growing consumer preference for environmentally conscious products. Kukoon’s exclusive washable range is made from 80% recycled materials, is liquid repellent and machine washable.
Paul said: “We want to continue to push the boundaries of performance, innovation and sustainability when it comes to our products.
“We are currently rolling out new packaging options which dovetail perfectly with our strategy of in-store concession partnerships.
“We appreciate storage space is a premium under the new partnerships therefore we have introduced foldable rugs. Previously a standard-sized 5x8 rug would have to be rolled making it harder to store and harder for the customer to take home, but the foldable options can be stored and transported more easily.”
The business currently has a core team of 55 employees. Retail partners will also benefit from the company’s in-house build and fit-out teams ensuring all display assets are fitted and displayed to the highest standards.
Paul said: “We are in a strong position for UK growth and look forward to announcing a retail partnership. With no middleman, our rugs come straight from the loom to your room, meaning we can offer incredible value without sacrificing quality.
“In addition to our designed in the UK rugs, we work very closely with suppliers in Turkey where rug making is part of the country’s heritage. We work with more specialist factory partners and currently stock more than 200,000 rugs and have 50,000 5-Star Reviews across Trustpilot, Google & Reviews.io.”
To learn more about Kukoon, visit kukoonrugs.com