Wayfair's New Wedding Registry Is Likely To Pose A Big Threat To B&M
- This is such a no-brainer that we actually though Wayfair already had one.
- We actually think that this should be an incremental comp driver for W, which probably flies in the face of our bear case.
- But what it certainly does is pressure the incumbent brick & mortar retailers – like Bed, Bath & Beyond, which we estimate generates 5-10% of sales from its registry.
- Check out the chart below, this is the online overlap in customers shopping online at Bed Bath and Wayfair. We’ve seen 1,000 points of incremental pressure at BBBY over just 16 months, which is the fastest rate we’ve ever seen any retailer get disintermediated.
- This synchs with BBBY management’s somewhat aimless commentary on the conference call about how it losing share.
- The problem for BBBY and KSS, M, WSM (especially Williams-Sonoma and Pottery Barn) is that we could see the W overlap chart below go to 50%, 60%, even 70%. Keep in mind that Wayfair’s brand awareness has moved up to 75%.
- Definitely a development to watch.
