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Next on the Wayfair agenda is a Perigold store.

Published: August 3, 2024
Author: HFT

Boston — Online home goods firm Wayfair now has nine physical locations after opening its flagship store in a Chicago suburb a few months ago, and it plans to continue expanding.

Niraj Shah, the CEO, co-founder, and co-chairman of the firm, announced during the second quarter results call that plans are on to open a second Wayfair store and develop a physical store concept for its premium brand, Perigold, in 2025. No other information was provided regarding the times or places.

Shah said the company’s stores, which currently include its Joss & Main, AllModern, Birch Lane and Wayfair nameplates, are a “core part of our strategy,” providing a bridge between physical and online shopping. “We see physical stores as a growth driver,” he said. Nearly one-third of in-store sales are for products not on display, he noted.

According to Shah, the stores have three main objectives: increase brand awareness for all of the businesses, reach a new market that was reluctant to shop online, and take up further share of wallet.

He noted that the early feedback on Wayfair’s flagship store is really positive, drawing in new customers who are mostly utilizing the company’s cash-and-carry selection. He remarked, “We’re pretty thrilled about how it has performed.”

Shah stated that sales were double digits more than the previous year at its most recent Way Day event, which took place in early May. He said that consumers are currently very motivated by promotions. Deals pique the interest of even people who aren’t specifically looking to buy anything.

Shah also admitted that the retail industry is going through a difficult time, particularly in the home segment. The category is down around 25% from its peak in 2021, and he attributed the decline to the weak property market, the overspending during the pandemic in 2020 and 2021, and the sluggish U.S. economy.

He acknowledged that July’s momentum was stronger than June’s, but he also noted that “it will be a challenging stretch with the economy the way it is.” Nevertheless, Shah expressed his hope that the housing market would strengthen and support the nation’s economic rebound.

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