Wayfair

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Wayfair Inc.
Formerly
CSN Stores (2002–2011)
Public
Traded asNYSEW (Class A)
Russell 1000 Component
IndustryE-commerce
Founded2002
FoundersNiraj Shah
Steve Conine
Headquarters4 Copley Place
Boston, Massachusetts,
United States
Key people
Niraj Shah (co-chairman, president & CEO)
Steve Conine (co-chairman)
James Savarese (COO)
Michael Fleisher (CFO)
RevenueIncreaseUS$ 6.779 billion (2018)
DecreaseUS$ -473.28 million (2018)
DecreaseUS$ -504.08 million (2018)
Total assetsIncreaseUS$ 1.89 billion (2018)
Total equityDecreaseUS$ -330.72 million (2018)
Number of employees
7,751[1] (2017) 12,124 (2018)
Websitewayfair.com
Footnotes / references
[2][3]

Wayfair Inc. is an American e-commerce company that sells home goods. Formerly known as CSN Stores, the company was founded in 2002 and now sells many home furnishings and décor items and over ten million products from over 10,000 suppliers. Headquartered in Boston, Massachusetts,[4] Wayfair has offices and warehouses throughout the United States as well as in Canada, Germany, Ireland, and the United Kingdom.[5]

Wayfair operates five branded retail websites: the main Wayfair site,[6] Joss & Main,[7] AllModern,[8] Birch Lane,[9] and Perigold.[10]

History[edit]

2002 to 2006[edit]

Entrepreneurs Niraj Shah and Steve Conine founded Wayfair in August 2002, as a two-person company with a makeshift headquarters in Conine's nursery, in Boston, Massachusetts.[11] Both Shah and Conine hold Bachelor of Science degrees from Cornell University. The pair had run two previous companies—Simplify Mobile and iXL, a global consulting firm—before starting Wayfair.[12]

As of December 2018, Shah is the Chief Executive Officer and Shah and Conine share the Chairman position.

Originally known as CSN Stores (the name is derived from a mix of Shah and Conine's initials), the company began with the website racksandstands.com, selling media stands and storage furniture.

In 2003, the company added patio and garden goods suppliers, three online stores, and more than a dozen employees, and relocated the headquarters into an office on Newbury Street, in Boston.

Over the next two years, the company expanded its catalog to include home décor; office, institutional, and kitchen and dining furniture and materials, home improvement goods; bed and bath materials; luggage; and lighting. In 2006, the company earned $100 million in sales.[13]

2007 to 2010[edit]

For the next four years, the company expanded in the United States and in international markets.

In 2008, CSN Stores began shipping to Canada and selling in the United Kingdom, and opened an office in London. In the same year, the Boston Business Journal ranked the company the #1 fastest growing private e-commerce company in Massachusetts, and the #4 fastest growing private company overall.[citation needed] In 2009, the company expanded to Germany. In 2010, the company relocated its headquarters to 177 Huntington Avenue, where they occupied 10 floors. At the end of that year, the company launched Joss & Main, a members-only private sales online store.

2011 to present[edit]

The Wayfair headquarters in the Back Bay section of Boston, Massachusetts in 2018.

By 2011, CSN Stores owned over 200 online shops, largely niche shops for specific products, like cookware.com, everyatomicclock.com, and strollers.com. In an effort to scale, to direct traffic to a single site, and to unify the aesthetic of the company, Shah and Conine rebranded CSN Stores as Wayfair. Wayfair, as a company name, has no real meaning; it was chosen by a brand firm.[3]

To market the new brand and to increase its expansion, in June 2011 the company raised $165 million in funding from four investment firms: Battery Ventures, Great Hill Partners, HarbourVest Partners, and Spark Capital.[14]

Wayfair.com launched on September 1, 2011.[15] As of July 2012, Wayfair had consolidated all of its niche websites, with the exception of Joss & Main and AllModern, into Wayfair.com. In August 2012, Wayfair launched Wayfair Supply, a single destination for Wayfair's business, government, and institutional customers. In August 2013, Wayfair acquired DwellStudio, a New York City-based design house and retailer focused on modern home and family furnishings.[16]

2014[edit]

In March 2014, T. Rowe Price led a $157 million pre-IPO financing, valuing the company at more than $2 billion.[17]

In late June 2014, the company again relocated its headquarters, this time to 4 Copley Place, about a block away from its previous headquarters at 177 Huntington Avenue. Along with 4 Copley Place, the company has two satellite offices in the surrounding area.[18]

In October 2014, Wayfair raised over $300 million through an IPO on the New York Stock Exchange under the ticker symbol W.[19] In July 2015, Wayfair sold its Australian business to local online retailer Temple & Webster for an undisclosed amount.[20] The brand was renamed to Zizo and later absorbed into the Temple & Webster business.

As of January 2014, Wayfair was the largest online-only retailer for home furniture in the United States,[21] and the 33rd largest online retailer in the United States.[22] The company generated $380 million in revenue in 2010, over $500 million in 2011, over $600 million in 2012, over $900 million in 2013, and over $1.3 billion in 2014.[23] In 2015, the net revenue of Wayfair increased to $2.25 billion,[24] to $3.4 billion in 2016[25] and to $4.7 billion in 2017.[26][27]

2017[edit]

Wayfair spent more than $500 million in advertising in 2017 and is on target to spend more in 2018.[2]

In 2017, a South Dakota lawsuit aimed at forcing Wayfair to collect and pay state sales tax made it to the US Supreme Court, South Dakota v. Wayfair, Inc. The court held that states may charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state.

2018[edit]

The company hosted its first "Way Day" sale on April 25, 2018. Sales quadrupled compared to an average day in March, according to a report from analytics firm Edison Trends. The number of unique buyers on Way Day also rose nearly 400% compared to the March average, although the average order price spent on Way Day ($276) was about the same as in March ($275), according to that report.[28]

According to an August 2018 article in The Boston Globe, Wayfair added an additional 2,000 employees in the first half of 2018 and now has a total employee headcount approaching 10,000. The company will be soon expanding to another building near Copley Square with office space for an additional 4,000 employees.[2]

According to a marketing professor at Emory University, the company is losing $10 for every new customer acquisition.[2]

On December 13, 2018, the Massachusetts Economic Assistance Coordinating Council approved a $31.4 million tax break for Wayfair in exchange for a pledge to increase their hiring by at least 3,000 in Boston and 300 jobs at a new call center in Pittsfield. The tax break is one of the largest-ever awarded by the state.[29]

2019[edit]

On March 26, 2019, Wayfair announced that its first permanent physical storefront would open in the Natick Mall in Natick, Massachusetts. The retailer had previously tested a few temporary pop-up storefronts during the 2018 holiday season, and confirmed plans to open four additional pop-up storefronts in 2019.[30]

Investors are suing Wayfair, claiming the company's executives misled them about the company's value and actions, losing them money as the top brass cashed out.[31]

In May 2019, Wayfair was added to the Fortune 500 list for the first time, coming in at number 446.[3]

Employee walk-out[edit]

On June 25, 2019, Wayfair employees announced plans to walk out in protest of a BCFS contract to sell beds to temporary migrant detention camps in a letter to senior management, including Niraj Shah and Steve Conine.[32][33][34] Wayfair leadership responded indicating they would not terminate the order, and did not indicate they would donate the profit from the order (approximately $86,000) to charity, as the letter requested.[34] Congresswoman Alexandria Ocasio-Cortez expressed her support for the employees and the walkout.[33] On June 26, 2019, several hundred Wayfair employees walked out.[35]

Operations and infrastructure[edit]

Wayfair has over 12 million square feet of warehouse space in Europe and North America with a dozen fulfillment centers. As of 2019, the company offers 14 million products from 11,000 global suppliers. Wayfair employs over 2,300 engineers and data scientists and 3,000 customer service representatives in Boston; Berlin; Ireland; and other cities in the United States. The company expects to spend more than $1 billion in marketing and advertising in 2019.[3]

Board of Directors[edit]

As of April 2019, the board of directors is:[36]

Niraj Shah Co-Founder, Chief Executive Officer, Director (Co-Chairman)
Steven Conine Co-Founder, Director (Co-Chairman)
Julie Bradley Director
Robert Gamgort Director
Andrea Jung Director
Michael Kumin Director
James Miller Director
Jeffrey Naylor Director
Romero Rodrigues Director  

Subsidiaries[edit]

Wayfair owns and operates a number of subsidiaries in both North America and Europe.[37]

Wayfair LLC[edit]

Online Home Store for Furniture, Decor, Outdoors & More.[38] Their inventory includes more than 10 mln products from millions of suppliers, making Wayfair a top destination for interior design shopping. [39]

Joss & Main[edit]

Online store for interior design products.[40]

AllModern[edit]

Online store for furniture, decorations and decor with minimalism designs and themes.[41]

Birch Lane[edit]

Online store for furniture, decorations and decor with traditional and classic designs and themes.[42]

Perigold[edit]

Premium store for high-end home furnishings.[43]

References[edit]

  1. ^ "Wayfair". Fortune. Retrieved 2019-01-14.
  2. ^ a b c d Nanos, Janelle (2018-08-07). "Is Boston's Wayfair the next Amazon?". The Boston Globe. Retrieved 2018-08-07.
  3. ^ a b c d O'Brien, Jeffrey (2019-05-16). "It's All Clicking for Wayfair, a Fortune 500 Newcomer". Fortune. Archived from the original on 2019-05-17. Retrieved 2019-05-17.
  4. ^ "Wayfair.com 'mega-site' is new home for CSN Stores' 200 shopping sites". Home Accents Today.
  5. ^ "CSN Relaunches as Wayfair.com". Furniture Today.
  6. ^ https://www.wayfair.com
  7. ^ https://www.jossandmain.com
  8. ^ https://www.allmodern.com/
  9. ^ https://www.birchlane.com/
  10. ^ https://www.perigold.com/
  11. ^ "Wayfair To Merge 200 Online Storefronts". Back Bay Company. CBS Boston.
  12. ^ "Team Bios". Wayfair.
  13. ^ "History Timeline". Wayfair.
  14. ^ "CSN Stores Raises $165 Million First Round to Expedite Expansion and Bolster Branding" (Press release). CSN Stores. June 22, 2011.
  15. ^ "Wayfair Launches as Online Shopping Megasite with Largest Selection of Home Products Anywhere" (Press release). Wayfair. September 1, 2011.
  16. ^ "Wayfair Acquires DwellStudio" (Press release). Wayfair. August 2, 2013.
  17. ^ Bensinger, Greg (March 7, 2014). "Wayfair, Speeding Towards IPO, Lands $2 Billion Valuation". The Wall Street Journal.
  18. ^ "WayfairInsider: Status". Twitter.
  19. ^ "Wayfair Inc closes initial public offering and full exercise of underwriters' option to purchase additional shares". Reuters. October 7, 2014.
  20. ^ "Investor Relations: Wayfair Sells its Australian-based Business to Australia's #1 Online Furniture & Homewares Retailer Temple & Webster". Wayfair.
  21. ^ "Wayfair's growth spurs talk of a possible IPO". Internet Retailer. January 28, 2014.
  22. ^ "Wayfair's web sales soar 81% in Q2". Internet Retailer.
  23. ^ "Wayfair Announces Fourth Quarter and Full Year 2014 Results". Reuters. March 4, 2015.
  24. ^ "Wayfair 2015 Annual Report" (PDF). Wayfair.com. Wayfair, LLC. January 31, 2016. p. 49. Retrieved June 2, 2016.
  25. ^ "Wayfair 2016 Annual Report" (PDF). Wayfair.com. Wayfair, LLC. January 31, 2017. p. 55. Retrieved July 25, 2017.
  26. ^ "Wayfair Announces Fourth Quarter and Full Year 2017 Results". investor.wayfair.com. Retrieved 2018-03-12.
  27. ^ "Wayfair-2017-Annual-Report" (PDF).
  28. ^ "Wayfair finds profits elusive as Q1 loss widens". Retail Dive. Retrieved 2018-05-02.
  29. ^ Sperance, Cameron (2018-12-13). "Wayfair Nabs $31M In Tax Breaks For Massachusetts Expansion". Bisnow Media. Retrieved 2018-12-14.
  30. ^ Thomas, Lauren (2019-03-26). "Online furniture retailer Wayfair is opening up its first store ever". www.cnbc.com. Retrieved 2019-04-19.
  31. ^ Cotter, Sean (2019-01-17). "Lawsuits: Wayfair Misled Investors". Boston Herald. Retrieved 2019-03-23.
  32. ^ Nanos, Janelle (June 25, 2019). "Wayfair employees plan walkout to oppose furniture sales to migrant detention facilities". The Boston Globe. Retrieved 2019-06-25.
  33. ^ a b Shanker, Deena; Roeder, Jonathan (25 June 2019). "Ocasio-Cortez Backs Wayfair Workers' Ire Over Border-Camp Sales". Bloomberg. Retrieved 26 June 2019.
  34. ^ a b Ehrenkranz, Melanie (25 June 2019). "Wayfair CEO Refuses to Stop Furnishing Concentration Camps: Report". Gizmodo. Retrieved 26 June 2019.
  35. ^ Ivanova, Irina (2019-06-26). "Wayfair employees walk out after company's sales to migrant children holding facility". www.cbsnews.com. Retrieved 2019-06-26.
  36. ^ "Wayfair Inc. - Investor Relations - Corporate Governance - Board of Directors". investor.wayfair.com. Retrieved 2019-04-12.
  37. ^ "Wayfair Inc. - Investor Relations - About Wayfair". investor.wayfair.com. Retrieved 2019-04-12.
  38. ^ "Wayfair.com - Online Home Store for Furniture, Decor, Outdoors & More". Wayfair. Retrieved 2019-04-12.
  39. ^ "Wayfair Review, Ratings and Customer Testimonials 2019". FurnitureCap. Retrieved 2019-07-25.
  40. ^ "Beautiful Home Decor, Beautifully Priced". Joss & Main. Retrieved 2019-04-12.
  41. ^ "Modern Furniture and Decor for your Home and Office". AllModern. Retrieved 2019-04-12.
  42. ^ "Birch Lane - Traditional Furniture & Classic Designs". Birch Lane. Retrieved 2019-04-12.
  43. ^ "Premium Home, Reimagined". Perigold. Retrieved 2019-04-12.