Moreover, Wayfair is growing at a dramatic rate. Stockrow estimates Wayfair’s revenues grew by 35.17% in the quarter ending on 30 September 2019. However, that growth rate was down from 41.56% in the previous quarter.Read more
Like TJX, Wayfair succeeds because it stays below the radar, caters to loyal customers, and offers great bargains. Another similarity is that Wayfair, like TJX, caters to women.
That is a smart strategy because women are the main shoppers for home furnishings. I think this partially explains why the market ignores Wayfair. To explain, most of the commentators and traders in the stock market are men who have little interest in home furnishing.
Moreover, most of the “experts” in e-commerce are men. Hence, Wayfair is cashing in by targeting a neglected segment of the market. In particular, Amazon has only made a big push into home furnishings in recent years.
On the other hand, both Walmart and Amazon have noticed Wayfair’s success. Not surprisingly, both Walmart and Amazon are making big offensives into the home furnishings market. Thus, Wayfair’s current success could be temporary.