Analysts at KeyBanc attended the Grand Opening of Wayfair's (NYSE:W) first Wayfair-branded store in Wilmette, IL, and spent time with senior management.
In a note to clients providing their feedback on the opening, the firm said they came away encouraged "given the bright, colorful, and vibrant feel." They highlighted that people lined up as early as 5 a.m., with an estimated 500 people at the time of the opening.
In addition, KeyBanc analysts noted that the merchandise breadth and assortment showcased many of the company's better and best products. Wayfair does not have financial ownership of the inventory within the store, as all products are on consignment, similar to its business model as an online retailer.
"While today was just day one of this first store, our observations support our belief that Wayfair-branded stores could add 30%+ to revenue over the next decade," the bank stated.
In its note, KeyBanc maintained a Sector Weight rating on Wayfair shares.