The company, which operates popular online home-decor sites such as Birch Lane, Joss & Main, Perigold and Wayfair, says the 20,000-square-foot store is to open by early next year, near a distribution center in Florence, Ky., about 12 miles from Cincinnati, reports Furniture Today.

The retailer reported net revenue — consisting of sales generated primarily through Wayfair’s group of home-decor websites — of $1.6 billion in the second quarter, up by 48.8 percent year over year. 

Wayfair declined to comment on future stores. But some observers say the retailer needs to open stores to compete against the likes of Amazon.com. "The move into physical stores should not come as a surprise," columnist Warren Shoulberg wrote at Forbes. "Customer acquisition costs have proven to be the Achilles heel of many online sellers, and that also appears to be the case with Wayfair. The cost of getting someone to walk into your store is turning out to be less than the price tag for getting him/her to make a purchase on your site."