Exclusive: Wayfair drops plans for $133M Houston fulfillment center that would have created 400 jobs
Boston-based online furniture retailer Wayfair has scrapped plans to occupy 1.2 million square-foot fulfillment center in North Houston. Pictured is a file photo of a worker inside the Wayfair distribution center in Cranbury, N.J. on April 13, 2017. E-commerce furniture firm Wayfair has dropped plans to open a $133 million distribution center in Houston, despite efforts from the city to provide tax incentives for the project that would have created 400 jobs.
The retailer, which had already signed a lease and is looking for another tenant to take over the space, is not alone in trimming its spending amid falling online sales. Two other furniture firms also are shedding space in Houston, reversing earlier plans to occupy large new fulfillment centers in the region.
The project was expected to create 400 full-time jobs by 2026, with a starting salary of $16.25 an hour, city officials said. Wayfair had planned to invest $63.5 million in the fulfillment center, on top of Prologis’ $70 million investment, according to a City Council agenda item. The Boston-based online furniture retailer is cutting costs in the wake of declining sales after an initial boom earlier in the pandemic. Sales at Wayfair fell 13 percent in the first nine months of last year, and analysts are expecting fourth-quarter sales to tumble by about 6.2 percent, Yahoo reported, citing analysts estimates from Zacks.
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