Wayfair Debuts An Outlet Store

After testing out pop-up shops last year, digital furniture retailer Wayfair plans to open the doors to an outlet store in Kentucky. The brick-and-mortar location will be in the building of a warehouse that processes returned goods, Digiday reported.

The space will showcase returned products that are in good condition as well as items that are discounted. A representative for the company, however, told the outlet that the company doesn’t have more outlet stores in the works.

As it stands, Appriss Retail data indicates that merchandise returns have led to $351 billion in lost sales. A selection of brands are turning to sales channels such as Amazon to sell returned goods and Under Armour has been using “off-price channels” to unload inventory.

With the Wayfair outlet store, Digiday reported that the company can recover more money from goods that are returned and decrease delivery costs. Apex Supply Chain Technologies Spokesperson Kevin Dugan said, according to the outlet, “This strategy is much more cost-effective for them because there’s an [additional] cost to putting items on eBay or Amazon and dealing with individual purchases through them.”

The news comes as Wayfair was planning on opening two pop-up shops at the beginning of November to create an interactive brand experience. One of the stores was to be located at the Westfield Garden State Plaza in New Jersey, while the other store was to be at the Natick Mall in Massachusetts. Wayfair Chief Product and Marketing Officer Ed Macri said in an October announcement, “Building on the success of our television advertising and direct mail, this pop-up experience is yet another way we are deepening engagement with customers beyond our online presence.”

The company planned to have home customer service representatives and design experts to offer product recommendations as well as answer questions at the location. At the same time, shoppers were to be able to learn about home improvement projects through a “How-To” station and peruse 100 swatches of fabric to make custom furniture.