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The Home Depot, Lowe鈥檚, Wayfair, and other retailers have taken a hit. The Home Depot missed revenue expectations for the first time since 2019 in Q4 2022, and Lowe鈥檚 missed revenue expectations as well. Consumers invested in home improvement as the pandemic set in, and they spent more time in their homes. As a result of high spending in 2020 and 2021, people aren鈥檛 buying new furniture now.

The tough housing market is also hurting companies ranging from Sherwin-Williams to Wayfair to Whirlpool. It isn鈥檛 just retailers that sell housing-related products that are adopting a cautious outlook. Retailers across a broad array of categories鈥攊ncluding Target, Walmart, Dollar General, and Steve Madden鈥� all recently offered cautious guidance, underscoring the uphill battle for Lowe鈥檚.

Amazon is laying off more than 1% of its headcount (about 18,000 employees), online furniture retailer Wayfair is cutting around 10% of its workers, and H&M is eliminating about 1% of its jobs.

With home sales falling as mortgage rates increase鈥攁nd renters staying put as their housing costs rise鈥�Wayfair and other furniture retailers face a difficult 2023. The big takeaway: Retail bankruptcies were few and far between in 2022, but that could change in 2023 as market pressures cause investors to choose sure bets over loss-making enterprises.

Businesses that have already adopted buy now, pay later (BNPL), such as Walmart or Wayfair, will likely be among the first to embrace A2A. Gen Z Breaks Into the Financial Services Mainstream. Gen Z is the new customer鈥攁nd their business must be won today. In 2023, there will be more adult Gen Zers than adolescents for the first time, equaling about half the size of the millennial population.

Sounds similar to Wayfair. Carina Perkins:. Yeah, similar to Wayfair. I think that online marketplace approach to furniture buying, in that Wayfair vein, is really going to prove popular. Sara Lebow:. Okay, moving along. Let's hear from you, Carina, of one of IKEA's, other biggest challengers. Carina Perkins:.

Retailers like Best Buy and Wayfair are playing from behind this year, with demand for consumer electronics and home furnishings still looking to turn the corner. Consumer electronics sales should begin to improve with an expected strong season for iPhone 15 demand, but there aren鈥檛 a lot of other new products in high demand to drive outsize gains.

Temu was No. 12 in 2022 holiday traffic, topping retailers like Kohl鈥檚 and Wayfair. With an average of 41.0 million visitors in November and December, Temu surpassed major ecommerce sites like Kohl鈥檚, Wayfair, and Nordstrom, and was within striking distance of Macy鈥檚. Temu surged ahead of low-price Chinese goods sellers Shein and Wish.com in dramatic fashion.

Etsy and Wayfair combined for 44.19% of all impressions on D2C brands. Both jumped into the top 10 by impressions, despite marginal increases in spend. The NFL accounted for 30% more TV ad impressions for retail brands year-over-year. More impressions (28.4% of the total) shifted to the 鈥淏ig 4鈥� broadcast networks versus last year (24.0%). Undoubtedly, the World Cup and NFL played a big part in this.

Wayfair will cut 1,750 jobs, or about 10% of its headcount. Didn鈥檛 read the tea leaves: The layoffs at Alphabet, Microsoft, Amazon, and Meta, make Apple the only Big Tech player that hasn鈥檛 announced a major talent trimming. Unlike its peers, Apple鈥檚 decision to not embark on bold pandemic-era growth is a likely contributor.

Wayfair also announced it would trial Pinterest鈥檚 clean room solution. 鈥淭he beauty of a clean room is that it's a privacy-centric way for CVS to share data from its 74 million Extra Care members and for us to share the data from our 498 million users, and end up with a repository of powerful, completely anonymized first-party data,鈥� said Carrie Sweeney, VP of retail at Pinterest.

To combat this, retailers like Amazon and Wayfair have begun instituting a 鈥渒eep it鈥� policy, telling customers to keep their returns instead of having to pay the costs associated with shipping them back to the warehouse. But peer-to-peer returns are another way to cut down on shipping costs while also saving the customer from having to get rid of an unwanted product.

The platform has also partnered with over 50 brands (including Nordstrom, Sephora, Ulta Beauty, and Wayfair) to allow their products to be featured and tagged in videos or Shorts. Taking care of business: But it鈥檚 not just B2C consumers turning to YouTube for recommendations.

That offers room for Amazon, Walmart, and Wayfair to undercut the brand. And some have noted the brand鈥檚 quality has declined. 鈥淵ou can find something that is a higher-quality piece for roughly the same amount that you would be spending at Ikea,鈥� said our analyst Zak Stambor. How is Ikea innovating?

Yeah, Wayfair, again, is in a tough space. Furniture, home furnishings is not a great category to be in. They're just hemorrhaging customers at this point. Their customer acquisition costs are just too high. Also, they about year ago started talking a lot about physical retail as a potential growth channel. Their first Wayfair-branded store is actually going to be like a mile, two miles to my house.

Number three, Wayfair, which is rebranding and opening a brick and mortar store. Becky, tell us more. Becky Schilling:. Yeah. So we picked Wayfair for its rebrand and its new campaign, which is welcoming shoppers to the Wayborhood, which is cute. They have a lot of celebrity partners. They have some new ones like Lisa Vanderpump of Vanderpump Rules, if anyone is not on the Bravo universe-.

Digital-first operations (Amazon, Wayfair). Marketplaces (eBay, Amazon). Mass merchandisers (Walmart, Target, Best Buy). Discount warehouses (Costco Wholesale). Grocers (The Kroger Co.). Department stores (Macy鈥檚). Category specialists (The Home Depot). Delivery services that support retailers (Instacart). Retail media鈥檚 scope is expanding as networks move further into video and CTV.

In June, they nabbed a second advertiser in the form of furniture etailer Wayfair. Bringing two large (if second-tier, relative to Amazon and Walmart) retail media players to the table will allow Pinterest to offer many smaller advertisers the ability to measure the efficacy of their ad spending. 10% of Pinterest鈥檚 advertisers are using its conversion API.

Wayfair is courting the pro consumer for repeat business with higher basket sizes. And BaubleBar is launching Minibar, a kids鈥� line. Increase footprint. Physical retail drives sales and discovery: By 2026, only 20% of sales will be online. So Warby Parker鈥檚 revelation that 60% of pre-pandemic transactions took place in-store鈥攁nd that it continues to expand its store fleet鈥攊sn鈥檛 a big surprise.

furniture from Wayfair, recommended Wayfair products.

In the last few months, we've seen new format announcements from Whole Foods, Walmart, ikea, Aldi, Wayfair, and Party City, just to name a few. So Zach Carina, can you tell me what's going on with the whole new store format trend? Zak Stambor (01:42):.

Now, let's talk about two brands approaching the edge, Kohl's and Wayfair. Zak, before we started recording, you told me you were really excited to talk about these companies. Why is that? Zak Stambor:. Yeah. So, they're very different companies with very different challenges. So, I'll just talk about each unto themselves.

Now the spring event that we've actually seen a similar type of retailer event in the online world in the past called Way Day by Wayfair, which is usually in mid or late April kind at the beginning of the... We'll call it home improvement season.

Wayfair has some feature where you can make the couch appear in your living room or maybe that's Ikea or maybe that's both. Carina Perkins:. Some of the social media platforms have been experimenting with that as well. So Snap is quite big on AR. And I think all of those things that make shopping on your mobile, actually it's reducing more of a friction than shopping on the desktop.