Online home goods company Wayfair has seen sluggish demand against high interest rates, but repreive could come if the federal reserve cuts rates in September
Wayfair CEO Niraj Shah likened the slowdown in the home goods category to the great financial crisis as the company reported misses on the top and bottom lines.
The category has been impacted by a stagnant housing market but could see a resurgence when the federal reserve cuts interest rates.saw sales decline in its fiscal second quarter as its CEO likened the current slowdown in the home goods category to the 2008 financial crisis. For more than a year, home goods companies like Wayfair have seen sluggish demand for things like new couches and dining sets as the overall housing market turned stagnant against high interest rates. Consumers are buying fewer new homes, which means they have fewer reasons to buy new furniture.
"We see declines that are similar to the declines that we saw in that 2008 to 2010 period and I think what that speaks to is that the category has been going through just a massive correction, a correction that we've previously only seen during a GDP recession," Wayfair finance chief Kate Gulliver told CNBC in an interview.
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