Wayfair, an online furniture and home furnishings seller, announced that it will be opening its first physical store in suburban Chicago next month. The 150,000-square foot store, located in Edens Plaza in Wilmette, Illinois, is set to open on May 23. The store will feature a large-format layout similar to that of Ikea’s stores and will include a restaurant called “The Porch.” Wayfair has previously opened test stores for some of its other brands, such as Joss & Main and AllModern. Founded in 2002, the company reported $12 billion in sales in 2023.
Despite its upcoming store opening, Wayfair has faced challenges with its customer base, leading to recent layoffs. The company laid off 1,650 workers, or 13% of its global workforce, in January of this year. This followed a previous reduction of 1,750 employees in 2023. Wayfair currently employs over 13,000 people in North America and Europe. The layoffs have come as a result of the company’s struggles as the pandemic winds down and people return to the office, reducing the time spent at home.
The decision to open a physical store may be a strategic move for Wayfair to attract more customers and boost sales. By offering a large-format store with a restaurant, Wayfair is likely aiming to create a shopping experience that appeals to customers who prefer to see and try out furniture in person before making a purchase. The company has previously tested this concept with other brands and may be looking to expand its physical store presence in the future.
The opening of the physical store in suburban Chicago marks a new chapter for Wayfair as it seeks to recover from recent layoffs and declining customer engagement. The company’s shift towards a brick-and-mortar retail format may indicate a broader strategy to adapt to changing consumer preferences and increase its market share in the home furnishings industry. Additionally, the store opening may help to create new job opportunities in the local area and strengthen Wayfair’s presence in the retail market.
As Wayfair continues to navigate the challenges posed by the post-pandemic landscape and changing consumer behaviors, the launch of its first physical store serves as a bold step towards innovation and growth. By diversifying its retail strategy and offering a unique in-person shopping experience, Wayfair is positioning itself to better compete in the competitive home furnishings market and attract a wider range of customers. The company’s ability to adapt to evolving trends and respond to customer needs will be critical in determining its success in the future.
