After a two-year wait and rescheduled opening date, Wayfair is unveiling its first expansive store under the flagship brand in Chicagoland next spring. The 150,000-square-foot megastore at Edens Plaza in Wilmette marks the home furnishings giant’s move beyond an online-only sales strategy and into brick-and-mortar in a more significant way.
The choice of location builds upon the positive response from Wayfair’s first brick-and-mortar store opening under the specialty home goods brand, Joss & Main, in Oak Brook, Ill., last summer. “We are excited to be opening our first large-format Wayfair store in the Chicago area,” a Wayfair spokesperson told FCNews. “We have continued to see our customers in the area excited to engage with our brand and experience all we have to offer.”
Opening physical stores—something Wayfair experimented with the past few years—is viewed by observers as a critical next step in their evolution. With the move, observers noted, the home furnishings retailer appears to be embracing the omnichannel model. “I always am interested to see supposedly online retailers go ‘old school’ and open brick-and-mortar stores,” said Scott Rozmus, president and CEO, FlorStar Sales, a Romeoville, Ill.-based flooring distributor. “Such evidence suggests that there remains a significant percentage of consumers that critically value some level of an in-person shopping experience.”
According to Wayfair representatives, the new megastore store promises shoppers an unparalleled shopping, exploring and inspirational journey across 19 departments—including flooring. From furniture and décor to outdoor and home improvement (and even dining), the online giant is gearing up to provide massive immersive and interactive experiences.
Retailers react
Olga Robertson, president, FCA Network, Shorewood, Ill., said she doesn’t view the new Wayfair superstore as a threat—at least not yet. “Touting the fact that they are offering free snacks in their in-store restaurant like IKEA may get some people in the store, but will that translate into appreciable sales?” she asked.
The new Wayfair store is, in fact, expected to provide both the size and scale necessary to compete against traditional furniture retailers such as RoomsToGo and IKEA as well as local and regional players. “We look forward to highlighting the breadth and depth of our assortment to help shoppers find exactly what they’re looking for across a range of sizes, styles and price points,” the Wayfair spokesperson said.
Among the massive selection of home goods listed on its website is a wide selection of flooring with the option for professional installation. Once Wayfair’s product mix, price points, merchandising and customer services are unveiled—which the company did not disclose at press time—local dealers can gain a better understanding of their value proposition. “I think it depends on whether they’re going to offer materials only or installation services,” said John Iskalis, executive VP, Iskalis American Floor Show, Gurnee, Ill. “They sell furniture and everything else, but I’m not sure what types of floors they’re going to specialize in.”
Other dealers posed the same question. “I don’t know if they will be selling lower-margin products,” Joel Schreier, president, Home Carpet One, Chicago, added. “I compare it to when FloorExpo was supporting nicer products, which was great for the industry because it contributed to people inquiring about them at other stores.”
Wayfair’s latest venture into the physical retail realm is expected to broaden its appeal to shoppers based in the Windy City’s northern suburbs. “Wayfair’s location is smack in the middle of one of the most affluent [parts] of the metropolitan area,” FlorStar’s Rozmus noted. “Certainly, they did not choose it by accident—which raises all sorts of interesting questions. For example, do the older, extremely affluent customers in this area have a particular predisposition toward in-person shopping? Are there particular local competitors they are targeting?”
From a merchandising perspective, dealers may find certain Wayfair tactics and strategies applicable to their business. “If you have similar products on your floor, make sure you are priced where they are, or under for material only,” FCA’s Robertson stated. “You don’t want your customer to perceive you as overpriced.”
No guarantee for success
Time will tell if Wayfair has the staying power to make it in the highly competitive Chicagoland market. Many home centers, national retail chains, home furnishings décor stores and mass merchants have tried and failed over the years for varying reasons. “We have watched big box stores come and go, and it has never had a big impact on our business,” said Lauren Voit, president, Great Western Flooring, Naperville, Ill. “We are an independent retailer and, as such, we have a more loyal customer base that wants to shop local and do business with a place they know.”
Retailers say they are ready and waiting to find out what Wayfair adds to the equation. “Wayfair’s arrival certainly will ramp things up,” FlorStar’s Rozmus said. “But it will be intriguing to see whether their initial impact is more on other mass merchants or the independent retailer.”
The prevailing sentiment, it seems, is one of cautious anticipation. FCA’s Robertson put it: “As retailers and someone whose job it is to keep our members ahead of the curve, we will certainly visit the store, once the dust settles, and get a sense of who they are or want to be.”
