Is Wayfair in Trouble?
Strangely, Wayfair is growing and losing money at the same time. For instance, Wayfair reported a quarterly revenue growth rate of 25.79% on 31 December 2019.
Read MoreIn individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
Strangely, Wayfair is growing and losing money at the same time. For instance, Wayfair reported a quarterly revenue growth rate of 25.79% on 31 December 2019.
Read MoreWayfair hurts Target because each of its orders represents one shopping trip a customer did not make to the mall or shopping center. I think Wayfair and Amazon’s growth, shows Americans are getting out of the shopping habit.
Read MoreMoreover, Statista calculates Wayfair had only 2.09 million customers in 2013, 3.22 million customers in 2014, 5.36 million customers in 2015, and 8.25 million customers in 2017. Thus, Wayfair’s customer base grew by 13.07 million shoppers in just five years.
Read MoreWe can sum Bed Bath & Beyond’s woes up in three words; Amazon (NASDAQ: AMZN), Wayfair (NYSEL W), and Walmart (NYSE: WMT).
Read MoreLike 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.