Wayfair Opens MASSIVE Store in Atlanta – Brilliant Strategy or Huge Risk?

Wayfair plans to open 150,000 square foot store in Atlanta in 2026, according to chain Storage.

Yet again, the online home furnishings giant will open its second large format store at the District at Howell Mills Shopping center in Atlanta.

Set to open in 2026, the 150,000 square foot space will offer an immersive one stop shopping destination for all things home.

The Atlanta store will mark Wayfair's second large format location, the first one, of course, opening in May of 2024 at Eden's Plaza in Wil, Illinois.

And the Wilmet store has reportedly delivered outstanding results, contributing to sales from the state of Illinois, growing more than 15% faster than the US overall from the store launch through the end of 2024, Wayfair said.

Chris, on a scale of one to 10, how much do you like the idea of Wayfair expanding to yet another large format store for Footprint?

Oh, and I'm, can I say 11?

I think, I don't, I don't know if there's a number above 11 actually, you know, I don't know, but Spinal Tap tapped us out at 11, but.

I think I would say 11 is appropriate.

Sure, sure.

Yeah.

Tell us why.

And you know, and you know, I mean, you know this better than anybody probably on a, on a degree that I probably won't even share on this podcast.

But you know, I've got a little, there's a little Walton Wayfair history going back here.

So after we finished up, yeah, after we finish up our store of the future work.

This was back in 2017.

So eight years ago, I met with Wayfair CEO Nerdshine and talked to him about heading up his physical store efforts.

And at the time, I'll never forget it, I was very bullish on them going after IKEA directly with a larger format store because of their, their distribution network and their expansive esthetics that they could offer their consumer relative to Ikea.

And he thought, he thought I was nuts.

Like, he thought I was crazy.

He literally laughed when I told him.

Was it from that idea or just you, your personality?

No, I, it was that idea.

It's like he was b.

He's basically like, no way.

Well now he's like, no, no, we're going to go small, we're going to go small, we're going to experiment.

I'm like, fine, you can do that, but it's not going to work.

And here we are eight years later and the idea appears to be working.

People are.

Here's the other thing I asked Placer AI to pull some data for me on this.

People are lingering in this store longer.

They're lingering in the store on average 50 minutes compared to an average home furnishing experience of 40 minutes.

And it appears to be driving sales in Illinois as you mentioned.

And, and so why, why, why?

And why was this the right way to go?

Because furniture shopping, I've said this a thousand times on the show and I think you're finally coming around to it a because I know we've had some debate on this, but it's a big freaking chore that's built around the big moments in your life.

And Wayfair has a ton of breath and variety that it can offer to help people get this chore done.

So keep in mind, here's the other point.

Wayfair sales base, I hadn't thought about this in a while.

Wayfair sales base is $12 billion.

A 15% uplift from the right store concept on that base only adds to that.

And so quite honestly, 50% feels low actually too when you think about physical versus digital commerce, you know, in the long run.

So net net, I love it.

And I would say my one final closing thought I got to get the dig into is I'd say to my buddy Nerd, why the heck did it take you so long?

Like why, why are we, why are we, why are we waiting here eight years to see this when the idea was there beforehand?

But anyway, maybe because they had it.

They had the same curse that everybody has been in where they thought that their independent owned brands meant more to people than they really do too.

I mean that was the thing you.

They went into those all modern and like small format stores thinking that people would recognize those Wayfair brands but.

Or not, I don't know.

But I think it was more than that.

I think it was more like they're very left brain organization, very E commerce centric.

They just want to dip their toe in experimen experiment in Whereas at the end of the day to have a physical concept that works, you have to have a point of view.

You have to have a reason why you can't just experiment piecemeal.

You've got to come up with the whole concept.

Sounds like they've done that.

They're refining it.

I can't wait to see it.

You've seen it in Chicago.

So I mean, what's your take here?

I listen, I think that the most important thing here, which is kind of again like just a no duh analysis is that this fills a very Important white space in the furniture market where if you are a person shopping for well designed furniture right now, it's either Ikea, where you're getting cheap stuff that's not going to last a long time but looks good, or you're going in the opposite direction and you have, you know, West Elm, Ashley Furniture Restoration Hardware, or you have to go to Marketplace really right now, like to get used versions of the high quality stuff.

There's nowhere that you can go with confidence.

Like, there's still a lot of people who will not buy a couch on Wayfair.

Like they just don't want it.

They're not going to.

It's still a price point that's high enough to not give them the confidence and the hassle really.

Like the convenience is the second part.

Like not only is this stuff like assembled in most cases like, or, or you just have to screw like legs on.

If you're thinking about like a couch from Wayfair versus the Ikea alternative of spending the whole afternoon like, no, no, no, no.

This is serving a need for well designed furniture at a middle the road price point.

And it's more convenient.

Like you can take some of this stuff home same day.

You also could return it to the store same day.

Like, it's no wonder that they're able to do a good business that we're seeing a 15% increase in, in sales in Illinois alone.

And then the last part too, that I, I don't know for sure, but I'm curious and we'll talk to Fiona Tan on my panel next week at Shop Talk.

But I'm also wondering if they aren't able to now correlate data from in store.

Like somebody actually sitting on the couch with like the online reviews for something.

Like why didn't somebody buy the couch in the store and why?

Or like, you know, if the reviews were bad online, like people won't buy that thing.

But like, how can they take the data from what people are experiencing and what their habits are, what they're buying or not buying in store and correlate that with what people are doing or not doing on the website?

That's something that I wonder like as AI comes into the fold and helps people like distill this information, like will they be able to improve their omnichannel operation overall because they have both data sources to support, you know, the sales or lack thereof of their products.

Yeah, and I can tell you don't even need AI for that.

I mean, I was doing that back at Target with a project called Digital Denver where we just did showroom of lawn and patio furniture and the items put in the store immediately exploded online.

So.

So yes, you should be able to correlate your data for what you're showing in store and if it's not getting a bump online, get it the hell out of the store as quickly as possible and replace it with something else.

So yeah, there's just so many, there's so many smart ways that, you know, a store can amplify your experience.

The one caveat I'd have about the story is like the 15% sales lift on why the store is working seems a little bit thin to me.

Because you want the store to work on its own, you know, as, as well as for it to work in the long term.

So you've got to figure out how to make it a profitable venture in and of itself.

Otherwise it'll be too expensive to operate.

So that's the one part.

But again, it's only, it's.

I don't even think it's been open a year yet.

So we'll see as they roll this out and refine the concept and get it, get it understood more fully.