In an interesting turn of events, online furniture retailer Wayfair (NYSE:W) is planning to open its first physical location. The store will be 150,000 square feet and located in Wilmette, Illinois. However, investors weren’t impressed with the news, as shares fell over 3% in today’s trading.
The move from online to physical stores appears to be a recent trend among e-commerce companies as they look for new ways to grow among growing competition from China and others. It’s also worth noting that e-commerce sales only make up 15% of retail sales in the U.S.
Therefore, even though this presents a large potential runway for growth, it still means that firms that sell exclusively online are missing out on 85% of transactions.
Wayfair Looks to Counter Declining Revenue
It’s no secret that Wayfair made a killing during the pandemic, as everyone was forced to stay at home. However, revenues have since been declining…
