Does Walmart Own Wayfair In 2024? Here‘s the Real Story
With its lightning-fast shipping and broad selection, Wayfair has quickly become a leading online destination for home furnishings and décor. Walmart is also ramping up its ecommerce presence across all categories. This begs the question on many shoppers‘ minds: does Walmart own Wayfair?
The short answer is no. But the relationship between the retail giants is more complex than you might think. Let‘s take a closer look.
The Rapid Rise of Wayfair‘s Online Furniture Empire
Wayfair has experienced explosive growth since its founding in 2002. The Boston-based company generated over $14.1 billion in net revenue in 2021, up from just $3.4 billion in 2017.
Wayfair‘s active customer base jumped from 26.1 million in 2019 to 33.2 million in 2021. The site sells over 22 million products across home furnishings, décor, housewares, and more.
This meteoric ecommerce success has led some to speculate that Walmart, the world‘s largest retailer, may acquire Wayfair to compete with Amazon. But so far, the home goods site remains staunchly independent.
Walmart‘s Major Investment in Ecommerce
Walmart is certainly not ignoring the massive shift to online shopping. The retail giant has committed to boosting its ecommerce sales and expanding its online product assortment.
- In 2018, Walmart acquired a 77% stake in Flipkart for $16 billion to grow its presence in India.
- Walmart‘s online sales grew by 8% in 2019, lower than Wayfair‘s 40% growth but on a much larger base.
- Walmart‘s ecommerce sales jumped by a staggering 79% in Q1 2021 as more consumers shifted to online shopping during the pandemic.
However, Walmart has yet to make major inroads into online furniture and home furnishings. Acquiring an established player like Wayfair could accelerate its efforts. But so far, no talks of a merger have materialized.
Why Wayfair Is Staying Independent – For Now
Wayfair‘s management, led by co-founders Niraj Shah and Steve Conine, has shown no interest in selling the successful company or merging with Walmart. Here are a few reasons why:
- Strong growth and financials – With annual revenue topping $14 billion in 2021, Wayfair is still rapidly expanding its market share. The company is not in need of an acquirer to sustain its growth.
- Different target markets – Wayfair focuses on higher-income millennials, while Walmart caters more to lower- and middle-income customers. A merger could dilute both brands.
- Vision to lead online home retailing – Wayfair‘s founders remain committed to leading the disruption of furniture shopping and likely want to remain in control.
- Antitrust concerns – A combination of the two largest online furniture sellers could raise red flags for federal regulators.
Wayfair likely wants to remain the dominant, independent player in online home goods. But only time will tell if a merger with Walmart is still possible.
Can You Return Wayfair Purchases to Walmart?
Unfortunately, items bought on Wayfair cannot be returned to Walmart. The two retailers have completely separate return policies and processes.
Wayfair returns must be handled directly through Wayfair itself. This can be more inconvenient than Walmart‘s legendary in-store returns. But it‘s not possible to return a Wayfair purchase via any Walmart location or channel.
| Return Policy | Wayfair | Walmart |
|---|---|---|
| Return Window | 30 days | 90 days |
| Return Shipping Cost | Buyer pays | Free returns |
| Return Locations | By mail only | In-store or by mail |
The Bottom Line
Despite some rumors circulating, Walmart and Wayfair remain wholly independent companies as of early 2023. While Walmart is investing heavily in ecommerce, it has not acquired Wayfair or its furniture sales dominance.
Wayfair wishes to remain a leading internet-only brand, and a merger with Walmart‘s different customer base could jeopardize that. With its continued growth, Wayfair currently has no compelling reason to join forces with retail giant Walmart.
