Dive Brief:
- Perigold is pushing forward with additional store openings next year with another confirmed location set to open in Houston in the spring.
- The store, located in Highland Village, will span about 20,000 square feet. The announcement comes after Perigold in August confirmed the opening of a West Palm Beach, Florida, location set to open in the fall of 2025.
- The Houston store will feature furniture, decor, lighting, kitchenware, bath and tile. The store will also have spaces for design inspiration curated from such national and local designers as Marie Flanigan, Jessica Davis, Evan Millárd and Julie Neill.
Dive Insight:
The announcement of two Perigold stores and possibly more in 2025 comes amid a turbulent time for home decor retailers who have seen a slowdown in demand after a heady run during the stay-at-home years of the COVID pandemic.
With the new locations, the company aims to add another touchpoint for customers.
“The Perigold brand has enjoyed strong and steady growth online since the outset of the business, and we know there is still a lot of room for growth in that channel,” Rebecca Ginns, global head of Perigold, said in an email. “We also know customer shopping journeys are often multi-channel in nature and most of home sales are transacted in physical stores. Expansion into physical retail allows us to meet our customers in all the places they are shopping, connect with them in a deeper way, and also build awareness of the brand which is still relatively new.”
After testing the brick-and-mortar waters, Wayfair has been making a push to expand its physical footprint across its portfolio of brands, which also includes AllModern and Joss & Main. Wayfair also opened its first large-format store earlier this year, a 150,000-square-foot flagship located in Wilmette, Illinois, which includes a restaurant.
“One of Wayfair’s aims with these new stores is to increase awareness and visibility, both of its individual brands and the overall business,” GlobalData Managing Director Neil Saunders said in emailed comments. “Wayfair has been successful as an online operation, but it has to spend a fortune on marketing and advertising to keep the brand on the radar of consumers. Stores can help accomplish this task at the same time as driving their own sales.”
Wayfair narrowed its losses in its most recent quarter even as its revenues and active customer base declined. The retailer in October also announced plans to trim 218 jobs when it closes a returns center and outlet store at the end of 2025.
“Despite opening more stores, Wayfair still has a lot of catching up to do with mainstream furniture players,” Saunders added. “If you look at brands like West Elm, Williams Sonoma, Crate and Barrel and Ikea, they all have a blended, omnichannel approach. Wayfair is moving in this direction, but its physical footprint remains tiny.”
