What changed in this filing

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Item 1. Business

2025-02-20 compared with 2024-02-22 · 36 added, 46 removed, 147 unchanged (36% of the section changed)

Wayfair is one of the world's largest destinations for the home.

Wayfair is the destination for all things home.

Through our e-commerce platform, we offer customers visually inspired browsing, compelling merchandising, easy product discovery and attractive prices.

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To meet our customers where they are, we offer a family of sites, each with a unique brand identity that offers a tailored shopping experience and rich product selection to a different target audience.

The destination for all things home.

• Joss & Main:

The ultimate style edit for home.

All of modern, made simple.

Modern made simple.

• Birch Lane:

Classic style for joyful living.

• Joss & Main:

The ultimate style edit for home.

The destination for luxury home.

• Wayfair Professional:

Just right for Pros.

Wayfair represents a significant majority of our net revenue and is currently the only one of our sites that also operates internationally, operating as Wayfair.ca in Canada, Wayfair.co.uk in the United Kingdom, Wayfair.de in Germany and Wayfair.ie in Ireland.

A one-stop Pro shop.

Wayfair also operated Wayfair.de in Germany until we exited the German market on January 10, 2025 (the “Germany Restructuring”).

more information on the Germany Restructuring, see Note 14, Subsequent Events , in the notes to the consolidated financial statements, included in Part II, Item 8, Financial Statements and Supplementary Data, in this Annual Report on Form 10-K.

On our sites, we also feature certain products under our house brands, such as Three Posts® and Mercury Row®.

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We also believe providing superior customer service is key to delighting our customers.

Our global customer service locations are staffed with over 3,100 full-time highly-trained sales and service employees.

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Our global customer service locations are staffed with ove r 2,000 full -time highly-trained sales and service employees.

Our Growth Strategy

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• grow certain categories where we under-index the broader home goods market today;

• engage with our customers through our loyalty program;

• increase delivery speed and improve the delivery experience for our customers through the continued build-out of our proprietary logistics network;

• continue to expand internationally and;

• continue to grow internationally;

• continue to execute our omni-channel strategy with the launch of physical retail stores across our family of brands;

and opportunistically pursue strategic acquisitions.

• opportunistically pursue strategic acquisitions.

As used herein, “Wayfair,” “the company,” “we,” “us,” “our” and similar terms refer to Wayfair Inc.

and its subsidiaries, unless the context indicates otherwise.

Our operating and reportable segments are the United States (“U.S.”) and International, which includes our businesses in Canada, the United Kingdom, Germany and Ireland.

See Note 13, Segment and Geographic Information, in the notes to the consolidated financial statements, included in Part II, Item 8, Financial Statements and Supplementary Data , of this Annual Report on Form 10-K.

Our operating and reportable segments are the United States (“U.S.”) and International, which includes our businesses in Canada, the United Kingdom, Ireland and Germany (through January 10, 2025).

Net revenue of the U.S.

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Home goods often have a low dollar value to weight ratio compared to other categories of retail, therefore requiring a robust and reliable logistics network that is optimized for items with those characteristics.

Many consumers also seek first-rate customer service so they are not burdened with managing delivery, shipping and return logistics on their own.

Many consumers also seek first-rate customer service so they are not burdened with managing delivery, shipping

and return logistics on their own.

However, we believe big box retailers that serve the mass market for home goods are often unable or unwilling to provide this level of service.

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Key Benefits for Our Customers

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Our private label and co-branded credit cards build loyalty and encourage repeat shopping with cash back rewards.

Wayfair Rewards, our recently introduced membership program, also encourages repeat shopping.

Membership provides cash back rewards, as well as other benefits, including free shipping, access to member only sales, and special offer and perks, designed to enhance the customer shopping experience and build long-term loyalty.

Superior customer service is a core part of the experience we offer shoppers.

Our customer service organization has over 3,100 full-time employees who help consumers navigate our sites, answer questions and complete orders, and offers specialists focused on specific product classes.

Our customer service organization has over 2,000 full-time employees w ho help consumers navigate our sites, answer questions and complete orders, and offers specialists focused on specific product classes.

This team helps us build trust with consumers, build our brand awareness, enhance our reputation and drive sales.

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This fulfillment network is a key component of our custom-built and seamlessly integrated technology and operational platform.

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We have custom-built large portions of our technology and operational platform to deliver the best experience for both our customers and suppliers.

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The majority of large parcel items are delivered to the customer through our WDN, which includes consolidation centers, cross docks and last mile delivery facilities.

For smaller items, we partner with carriers to handle the delivery to the customer.

We believe that our proprietary logistics network has and will continue to help drive incremental sales by delighting our customers with faster delivery times and a better home delivery experience.

Over time we believe this network will also lower our costs per order by reducing damage rates and leveraging economies of scale in transportation.

We believe that our proprietary logistics network has and will continue to help drive incremental sales by delighting our customers with faster delivery times, lower prices and a better home delivery experience.

The market for online home goods and furniture is highly competitive, fragmented and rapidly changing.

While we are primarily focused on the mass market, we compete across all segments of the home goods market.

Our competition includes furniture stores, big box retailers, department stores, specialty retailers and online retailers and marketplaces in the U.S., Canada, the United Kingdom, Germany and Ireland, including:

• Furniture Stores:

American Freight, Ashley Furniture, Bob's Discount Furniture, Havertys, Raymour & Flanigan and Rooms To Go;

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• Big Box Retailers:

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• International:

Argos, Canadian Tire, John Lewis, Leon's, Next, Otto, Westwing, and XXXLutz, in addition to several of the companies listed above who also compete with us internationally.

Argos, Canadian Tire, John Lewis, Leon's, and Next in addition to several of the companies listed above who also compete with us internationally.

We believe that the primary competitive factors in the mass market are vast selection, visually inspiring browsing, compelling merchandising, ease of product discovery, price, convenience, reliability, speed of fulfillment and customer service.

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Supporting our employees has always been central to our work and we believe that it is important that all employees feel welcome and are able to bring their full selves to work every day.

We believe we have a good relationship with our employees, which includes approximately 14,400 employees, of which approximately 12,800 are full-time equivalents, as of December 31, 2023.

Our reported headcount includes a substantial majority of employees impacted by the workforce reduction we announced in January 2024.

The workforce reduction included approximately 1,650 employees, of which 1,200 are corporate employees, who will no longer be reflected in our headcount by the end of the first quarter of 2024.

We believe we have a good relationship with our employees, which includes approximately 13,500 employees, of whom approximately 12,100 w ere full-time equivalents, as of December 31, 2024.

Our reported headcount includes the approximately 730 employees impacted by the Germany Restructuring, although we expect approximately half of these positions to relocate to other corporate offices.

Additionally, we rely on independent contractors and temporary personnel to supplement our workforce, primarily in our logistics network.

None of our employees are represented by a labor union or covered by a collective bargaining agreement.

Diversity, Equity and Inclusion

Wayfair is strongly dedicated to Diversity, Equity and Inclusion (“DEI”).

Through cross-functional partnerships, our Head of DEI creates a center of excellence for our DEI strategy, aiming to ensure that all of our employees feel supported and can maximize their contributions and development opportunities.

Through these cross-functional partnerships, the DEI team creates the strategy and identifies initiatives aimed at embedding a lens of inclusivity into all aspects of the business.

We have worked to provide an equitable employee journey for all employees by giving them actionable feedback and training managers to lead with empathy and without bias.

Additionally, we have partnered with groups across the business to leverage DEI principles in support of our broader company goals –– not only for our people, but for our customers, our suppliers and our partners .

Compensation and Benefits

Wayfair’s overall compensation program is structured to attract, motivate and retain highly qualified talent by paying them competitively and equitably, including offering market-competitive salaries, equity and benefits.

Wayfair’s overall compensation program is structured to attract, motivate and retain highly qualified talent by paying competitively and equitably, including offering market-competitive salaries, equity and benefits.

Our full-time employees are eligible to receive, subject to the satisfaction of certain eligibility requirements, our comprehensive benefits package including life and health (medical, dental and vision) insurance, a 401(k) retirement plan, where we provide matching contributions competitive with those provided by our peers, paid parental leave, paid time off and a discount off of purchases made through our family of sites.

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Wayfair is committed to protecting our team members’ health and wellness.

We continue to evolve our programs to support our employees’ health and wellness needs.

Our programs focus on supporting our employees’ health and wellness needs.

We also provide benefits and resources to employees aimed at addressing stress, burnout and mental health and the promotion of self-care.

Maintaining a safe work environment is also important to us, and our management team reaffirms our objectives each year to our frontline employees through our annual Commitment to Safety

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Maintaining a safe work environment is also important to us, and our management team reaffirms our objectives each year to our frontline employees through our annual Commitment to Safety Statement.

Our efforts include incident and hazard reporting, standard operating procedures aimed at reducing risk of injury, training, promotion of best practices, and measurement of key safety metrics.

Environmental, Social and Governance

As a multinational retailer with a global supply chain, Wayfair is committed to responsible practices across our business—from showcasing more sustainable products through our Shop Sustainably program, to implementing waste reduction initiatives, lowering emissions and adopting sustainable business practices where practicable.

We have established and publicly announced our goal to reduce our Scope 1 and 2 greenhouse gas, or GHG, emissions by 63% by 2035 in comparison to the 2020 baseline.

This past year, Wayfair made progress toward this goal by signing agreements to install on-site solar panels at several fulfillment centers and by joining an aggregated virtual power purchase agreement.

As part of this agreement, Wayfair is contracted to offtake 15 MW of power from the solar project annually.

Corporate Responsibility

As a multinational retailer with a global supply chain, Wayfair is committed to responsible practices across our business—from showcasing more sustainable products through our Shop Sustainably program, to implementing waste reduction initiatives, l owering emissions and adopting sustainable business practices.

We have established and publicly announced our goals to achieve zero waste (90%+ waste diversion from landfill and incineration) across Wayfair operations globally by 2030 and to reduce our Scope 1 and 2 greenhouse gas emissions by 63% by 2035 compared to a 2020 baseline.

This past year, Wayfair made progress towards our emission goal by joining a second aggregated virtual power purchase agreement.

As part of this agreement, Wayfair is contracted to offtake 20 MW of power annually from the solar project.

Wayfair also continues to evaluate and incorporate energy efficiency features across its global facilities.

Building on the initial success of our Shop Sustainably program, we have expanded the number of suppliers’ products that meet the standards for one or more of the third-party certifications included in the program, including energy or water efficiency, sustainably sourced wood, organic textile use, or Fair Trade Certified™.

These certifications include energy or water efficiency, sustainably sourced wood, organic textile use, or Fair Trade Certified™.

More Information

Additional information about our human capital management efforts, including our latest efforts related to DEI, can be found on our investor website at investor.wayfair.com.

Additional information about our human capital management efforts can be found on our investor website at investor.wayfair.com.

The information on our website is not, and shall not be deemed to be, a part hereof or incorporated into this or any of our other filings with the SEC, and the reference to our website is intended to be an inactive textual reference only.

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We encourage investors, the media, and others interested in us to review the information we post on these channels.

The information on our website is not, and shall not be

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deemed to be, a part hereof or incorporated into this or any of our other filings with the SEC, and any reference to our website is intended to be an inactive textual reference only.

The information on our website is not, and shall not be deemed to be, a part hereof or incorporated into this or any of our other filings with the SEC, and any reference to our website is intended to be an inactive textual reference only.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business