Wayfair shares tumble amid report of Amazon furniture push – CNBC

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Niraj Shah, Wayfair CEO

Shares of Wayfair dropped on Monday afternoon, after a trade publication reported that Amazon may be introducing new delivery options for furniture sellers.

Amazon representatives told a group of retailers on Monday that it hopes to allow furniture sellers that do not deliver nationwide to join the platform, according to a report in Furniture Today. Retailers could list their products on the platform with a menu of services options, like “white glove delivery,” as opposed to giving their products to third-party shippers, according to Furniture Today.

Shares of rival Wayfair, an online home store, fell about 4.5 percent.

CNBC reached out to Amazon for comment, but did not immediately hear back. Wayfair declined to comment.

While Amazon has not formally announced changes to its furniture program, a New York Times report earlier this year indicated that the e-commerce giant has big plans when it comes to home furnishings. Seattle-based Amazon is mulling brick-and-mortar stores for furniture and appliances, to take advantage of technology like augmented or virtual reality, the Times reported.

Amazon has also continued to invest in new fulfillment centers for bulky items, including a New Jersey facility announced last week.

Still, shares of Wayfair are up more than 25 percent so far this year. A recent survey of high-income consumers by Piper Jaffray showed that Wayfair’s brand finished third, under IKEA and Ashley Furniture, as favorite room furniture and home decor brand.

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