Wayfair's Q2 2019 Results
The home furnishings retailer reported a loss of $181.93 million for the quarter, compared with a loss of $100.73 million a year ago. Sales rose 42%, more than analysts had expected. Wayfair’s operating expenses rose 52% to $730.8 million from $480.3 million a year ago amid increased investments in customer service, advertising, technology and other operating fees. The company, which has consistently reported double-digit revenue growth, has yet to turn a profit.
“You’d want totally different set of tools but equally powerful, equally friction free, equally elegant and you’d want to make each one more and more powerful while still making more and more easy. And so that’s something that we recognized a while ago where we’re about six to nine months into scaling up the team that’s going after it.”
While Wayfair may be making moves to improve the tools their suppliers interact with, Shah said the retailer doesn’t think the answer is to have less tools and less programs, but that the key is to make them easier for suppliers to adopt regardless of the sophistication of the supplier from a technology standpoint.
“What we’re seeing is there’s huge enthusiasm on their part to participate. But frankly, the complexity involved today is, one of the sources of friction that we’ve been eroding. And I think over the next, six, 12, 18 months, we’re hoping to transform that platform from what we have today…but today, we’re still viewed as better than a lot of other platforms in terms of supplier tools.”
Shah noted earlier in the call that the retailer views its suppliers as a "core part of the Wayfair family."