High-income shoppers drive revenue gains at Wayfair
Article excerpt
Despite continued housing market uncertainty, the company’s upscale Perigold banner experienced growth, increasing by over 35% in Q2. Despite continued uncertainty in the housing market, Wayfair beat its own expectations of mid-single-digit growth in the second quarter. The growth was driven by momentum in orders, which were up 6% year over year and up more than 12% from the first quarter, representing the retailer’s best Q2 sequential growth since the second quarter of 2020, Shah said. Active customers grew 3.3% year over year to 21.7 million. The company’s higher-end offerings, particularly its Perigold banner, helped fuel growth in the period. Perigold, which was introduced in 2017, has grown at a double-digit rate every year since launch, posting more than 20% growth in 2024 and 2025, according to Shah, adding that Perigold’s customer base spends about three times what a typical Wayfair.com shopper would in a single year. “We have a clear line of sight to grow Perigold into a multibillion-dollar business in the years ahead,” Shah said. The company said about 40% of Perigold’s customers each year are new to the Wayfair ecosystem. “This isn’t just a repackaging of existing demand,” Shah said. “We’re pulling in a customer we would not otherwise reach, one who is more affluent and resilient across economic cycles.” As part of Wayfair’s broader efforts to grow its...
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The company is also planning to launch a specific Perigold loyalty program later this year.
