Like Peloton, Wayfair has shifted into reverse and into red ink. It’s not just that the company isn’t growing as fast as it had been. Our team is too large for the environment we are now in, and unfortunately we need to adjust.” “This year, that growth has not materialized as we had anticipated. We were seeing the tailwinds of the pandemic accelerate the adoption of e-commerce shopping, and I personally pushed hard to hire a strong team to support that growth,” said CEO Niraj Shah in a letter to staff announcing the layoffs. “We’ve grown Wayfair significantly to keep pace with the e-commerce growth in the home category. In making the announcement, the CEO admitted the company had been way too optimistic about its ongoing growth potential. But perhaps the poster child for companies reeling from this shift is online home goods retailer Wayfair, which just announced it is cutting 5% of its staff. The shift in spending has hit a wide range of retailers, including giants such as Walmart and Target. Now, any such purchases are more likely to be for things like long-delayed travel plans rather than more stuff. Consumers have shifted their buying priorities, especially amid sky-high prices for essentials such as food and gasoline that have forced many households to cut back on nonessential purchases. That home goods buying binge has come to a crashing halt. Many took the money they were saving by not commuting or vacationing to buy furnishings and other items to spruce up their homes. The pandemic forced people to stay home, and in millions of cases, to start working from there. Here are some other studs of 2020 that have become duds in 2022. Numerous companies that convinced themselves - and investors - that they were well positioned to keep growing once Covid retreated have been proven wrong. Peloton is hardly the only pandemic winner to recently turn into a post-pandemic loser. Shares have lost more than 90% of their value since the end of 2020, and are now worth less than half of what they were at the beginning of that year.
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