Here's why Etsy has peaked and a Michaels Stores merger or eBay, Temu acquisition could be best way forward

Retail industry darling Etsy has peaked and should look at merger or acquisition options, says Brittain Ladd, a supply chain consultant and former Amazon executive.

Ladd made the observation as Etsy posted consolidated gross merchandise sales or GMS of $3.74 billion for the quarter ended 31st December, compared with analysts' estimates of $3.88 billion according to data compiled by LSEG.

The online marketplace, which recently made sweeping changes to its C-suite, posted quarterly revenue of $852.2 million, compared with analysts' expectations of $862.8 million. The company also forecast first quarter GMS to decrease 6.8% from a year earlier, a similar rate of decline as seen in the last three months of 2024.

In a LinkedIn post, Ladd said: "I remain convinced that the best move Etsy can make is one of the following: merge with Michaels Stores (new CEO David Boone should pursue this; be acquired by eBay or by Temu."

He added: "Etsy has peaked in my opinion. I think Michaels, eBay or Temu would greatly improve the business."

Addressing the fourth quarter and full year 2024 results, CEO Josh Silverman said: "Despite facing significant GMS headwinds in 2024, we are proud to have delivered year-over-year revenue growth and very strong profitability, while simultaneously investing in our future.

“Foundational improvements in our marketplace, particularly in quality, reliability, and in making our app a place for discovery, are already enhancing customer experiences - which we believe will further differentiate the Etsy experience, driving consideration and purchase frequency as we work to get back to GMS growth."

2025 RTIH INNOVATION AWARDS

Online retail will be key focus areaa at the 2025 RTIH Innovation Awards.

The awards. which will open for entries in March, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.