Wayfair Opening Brick-and-Mortar Location Outlet
Home-furnishing company Wayfair divulged it will be opening their first ever physical “store” in Florence, Kentucky. According to FurnitureToday, “Wayfair already operates a distribution center in Erlanger, Kentucky” which services the greater Cincinnati market. A spokesperson for Wayfair said it will sell returns and closeouts in good condition.
Once adamant that’s its business would remain online, Wayfair has since shifted gears with intentions to generating an intimate user experience that can further fuel the eCommerce giant.
The company, indistinguishable to Amazon, has invested heavily itself, with no plan on turning a profit anytime soon. Many analysts propose that Wayfair needs to open brick-and-mortar stores to compete against the likes of Amazon. “The move into physical stores should not come as a surprise,” columnist Warren Shoulberg wrote at Forbes. “Customer acquisition costs have proven to be the Achilles heel of many online sellers, and that also appears to be the case with Wayfair. The cost of getting someone to walk into your store is turning out to be less than the price tag for getting him/her to make a purchase on your site.”
Nevertheless, Wayfair has been a favorite on Wall Street, with the stock price increasing 68% since last August.
The retailer has reported a net revenue of $1.6 billion in Q2 2018 across all its different online home-décor sites, such as Birch Lane, Joss & Main, and Perigold.