Wayfair goes brick-and-mortar
Online furniture seller Wayfair Inc. is walking down the path of other online retailers by opening an actual store.
According to the Associated Press, the company will open its first brick-and-mortar store by early next year in Florence, Ky., a city about 12 miles outside of Cincinnati. A spokesman for the e-commerce giant says the 20,000-square-foot outlet store will sell items that have been returned but are in good condition, as well as other discounted goods.
Wayfair released its second-quarter report in early August, with the report showing that the company experienced a major GAAP net loss of $100.7 million and a major gross profit of $385 million, or 23.3 percent of its total net revenue. A similar correlation can be found in Amazon's financial reports, particularly when the e-commerce giant first launched. This was Amazon's approach early on -- to gain scale and sales volume and lose lots of money in the process.
News of the Wayfair store was first reported by industry magazine Furniture Today, according to the Associated Press. Online retailers, such as Amazon, have been establishing a physical footprint, who bought grocer Whole Foods last year, has opened more than a dozen bookstores. Amazon also plans to open more cashier-less Amazon Go convenience stores.
To read the entire Associated Press article, click here.