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Buyers abandon Wayfair | CNN Business

New YorkCNN Business—Wayfair lost more than a million customers in its most recent quarter as shoppers turned away from new furniture and home décor. The e-commerce retailer said its number of active customers fell 22.6% in the quarter ending September 30 compared to the same period last year. The company’s sales were also down 9% in the quarter from a year ago. He lost $283 million. Wayfair (W) stock rose 7% on Thursday as results were better than Wall Street had feared. Still, the company’s shares have plunged nearly 80% this year. “Wayfair’s business is not performing and it is losing significant market share,” said Neil Saunders, analyst at GlobalData Retail. There has been a broader downturn in the furniture and home goods sector after a boom in 2020 and 2021, when many customers unable to travel or go to the office spent money redecorating their homes . Persistent inflation, which hit 8.2% in September, also impacted low- and middle-income shoppers, who cut back on discretionary purchases to focus on paying for essentials like groceries. , gasoline and rent. Wealthier customers also shifted their spending from furniture and other goods to travel and services. Mortgage rates are rising dramatically, reducing demand for new homes. “We’re seeing shoppers being more deliberate with their spending habits as they seek out great value and wait for promotions,” Wayfair CEO Niraj Shah said Thursday in a call with analysts. Wayfair said recently that it would cut nearly 900 jobs, or about 5% of its workforce, and pause an international expansion plan. Other furniture stores have also been hit hard by the furniture downturn, including RH (RH) and Williams-Sonoma (WSM), which owns West Elm and Pottery Barn. Not all news on the site expresses the views of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.

Source : WORLD NEWS

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