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Wayfair W is leaving no stone unturned to capitalize on growth opportunities present in the home goods market. Per an EMR report, the global furniture and home goods market size is expected to hit $914.10 billion by 2032, indicating a CAGR of 5.2% during the forecast period of 2024-2032.

In this regard, the company recently inaugurated its first in-person large-format store in Wilmette, IL, providing a one-stop destination for all home goods, including furniture, home decor, housewares, appliances and home improvement products.

The store features 19 departments offering expert onsite design services and fast delivery, enabling customers to purchase curated collections for their homes.

This offline store has increased Wayfair’s physical footprint. In this way, the company further aims to expand its reach to a wider customer base, opting for offline shopping in the United States.

This, in turn, will likely bolster Wayfair’s overall customer base.

In the first quarter of 2024, the company’s active customers grew 2.8% year over year to 22.3 million.

Wayfair Inc. Price and Consensus

Growing Efforts in Home Goods Market

Wayfair conducted a new brand campaign, "Welcome to the Wayborhood," to inspire customers to create their own unique home expression, regardless of style, space, or budget. The campaign, which includes TV spots and social activations, aims to provide a seamless shopping experience for customers, showcasing their various styles and personalities. This campaign is expected to increase brand awareness among its customers.

The company launched The Montana Collection, expanding its French-country-styled Kelly Clarkson Home line’s offerings.

The Montana Collection, inspired by Wayfair’s official brand ambassador, Kelly Clarkson’s ranch home in Montana, features the star’s self-curated collection of vintage-inspired furniture and décor pieces.

The above-mentioned initiatives are expected to strengthen Wayfair’s footprint in the home goods market, which, in turn, will likely aid its overall financial performance in the upcoming period.

The Zacks Consensus Estimate for 2024 revenues is pegged at $12.14 billion, indicating year-over-year growth of 1.2%.

Stiff Competition

However, intensifying competition in the home goods market from major players like Amazon AMZN and eBay EBAY remains a risk. Wayfair’s shares have lost 0.8% on a year-to-date basis, underperforming the Retail-Wholesale sector’s 9.3% growth. Its shares have underperformed both Amazon and eBay.

Amazon enjoys a strong momentum in the home goods market on the back of its Amazon Home offerings, which include home decor products, furniture, home appliances and a range of home improvement goods like lighting and bed and bath materials. The company is also gaining from a robust smart home devices portfolio, which includes smart home security cameras, video doorbells, and mesh home Wi-Fi systems, among others.

AMZN shares have gained 19% on a year-to-date basis.

Meanwhile, eBay offers a variety of home décor products, including clocks, floral décor, vinyl art, sculptures and figurines, to name a few. The company also offers customers a wide range of household supplies and cleaning products, kitchen fixtures, holiday and seasonal décor, lamps, lighting and ceiling fans, and bedding & bath products, thereby bolstering its presence in the home goods space.

EBAY has returned 25.4% on a year-to-date basis.

Zacks Rank & Stocks to Consider

Currently, Wayfair carries a Zacks Rank #3 (Hold).

A better-ranked stock in the retail-wholesale sector is Coupang CPNG, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Coupang shares have gained 73.2% in the year-to-date period. CPNG’s long-term earnings growth rate is currently projected at 1.64%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.