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       lite.cnn.com - on gopher - inofficial
       
       
       ARTICLE VIEW: 
       
       Wayfair is opening its first-ever physical furniture store
       
       By Parija Kavilanz, CNN
       
       Updated: 
       
       2:31 PM EDT, Thu April 18, 2024
       
       Source: CNN
       
       Online furniture and home furnishings seller Wayfair is set to open its
       first-ever namesake store next month, the company announced Thursday.
       
       The large-format store, clocking in at 150,000 square feet and located
       in Edens Plaza in Wilmette, Illinois, will open to shoppers on May 23.
       It will also feature an onsite restaurant called “The Porch,” the
       company said, taking a page out of Ikea’s store setup.
       
       Although this will be the first brick-and-mortar location for the
       Wayfair brand, the company has tinkered with opening test stores for
       some of its other owned brands, including Joss & Main and AllModern.
       
       But the move to expand its flagship Wayfair brands into physical stores
       comes as it struggles with sluggish sales and an increased need for
       spending on advertising.
       
       “Wayfair’s online business has been tremendously successful at
       generating sales. Unfortunately, it is not profitable because of the
       amount of marketing that has to be done to attract and retain
       customers,” said Neil Saunders, retail industry analyst and managing
       director at GlobalData Retail.
       
       Furniture stores need to always be advertising, Saunders added, because
       people generally don’t buy furniture very often. Wayfair constantly
       needs to remind customers that it even exists, as a result.
       
       But it’s not just the big advertising spend that’s hobbling the
       company. Sales are down, too.
       
       posted a 1.8% drop in its annual sales in 2023, to $12 billion, and a
       net loss for the year. In January, the retailer laid off 1,650 workers,
       or . This follows a separate round of layoffs in 2023 that eliminated
       1,750 jobs.
       
       Its CEO, Niraj Shah, who , explained the company’s hardships in an
       open letter. Wayfair “went overboard in hiring during a strong
       economic period,” he wrote, referencing the pandemic lockdowns when
       online shopping spiked as homebound families spruced up their
       apartments, houses and backyards, sparking a “dramatic surge” in
       demand that doubled Wayfair’s sales to $18 billion.
       
       But, coming out of the pandemic, and with persistent inflation, quickly
       dropped off the shopping list for more budget-conscious consumers.
       
       Saunders said the new store could help drive sales and give Wayfair a
       more visible presence in the market that will “throw a halo around
       the online operation.” 
       
       “It’s basically a recognition by Wayfair that people shop in an
       omnichannel way, and like to visit stores as well as use online. This
       is particularly important in furniture and finishings where people like
       to see and try out products before buying,” Saunders said.
       
       Whether the store makes a difference to Wayfair’s financials remains
       to be seen. “If this store is successful then it could be the start
       of wider physical expansion for Wayfair,” Saunders said.
       
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