Home goods eCommerce marketplace Wayfair lost about 25% of its customers in the past year and saw its deliveries drop almost 30% in the second quarter compared to the same time a year earlier, a reflection that people are thinking twice about home-based updates.
According to a company earnings release Thursday (Aug. 4), Wayfair’s active customers fell to 23.6 million, down 24.1% year over year, while deliveries decreased 28.2% to 10 million. The drops reflect a change in consumer preferences since the height of the pandemic when customers were quarantined and focusing more on tweaking their home décor.
“During a difficult macroeconomic environment, we remain squarely focused on our customers and our suppliers, and on making sure Wayfair is their preferred platform for the home,” said Wayfair CEO, Co-Founder and Co-Chairman Niraj Shah in the release. “…Consumers remain engaged and responsive to the right combination of wide selection, great deals and satisfying service, while suppliers are leaning in with Wayfair, extending us more product and better wholesale costs, while using more of our service offerings.”
For the second quarter of the year, ending June 30, Wayfair’s total net revenue was down almost 15% to $3.3 billion year over year, while net revenue in the United States was down 9.7% to $2.8 billion, the release stated.
PYMNTS research showed that over half of U.S. consumers feel worse off financially now than in 2021, and they don’t see substantive relief coming until mid-2024.
Read more: As Walmart Warns, Consumers See Nearly 2 Years of Inflation Pain Ahead
The study, based on the responses of nearly 3,800 consumers, found that 70% of shoppers, including those earning $100,000 per year or more, are dropping nonessential purchases like home décor, apparel and consumer electronics.
Wayfair’s earnings woes come just three months after the company appointed Kate Gulliver as chief financial officer (CFO) and chief administrative officer (CAO) upon the retirement of CFO Michael Fleisher.
See more: Wayfair Promotes Kate Gulliver to Take on CFO, CAO Roles
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