X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

FORT WORTH, TX-Pier 1 Imports same-store sales have taken a beating this year, but executives say they are hopeful that 2005 will bring gains in that area as well as others, they said during their Q3 conference call. A new advertising campaign could help bolster that strategy, they said.

Pier 1 officials decided not to run any television advertising in the fall because of competition with the presidential elections. They also weren’t getting the expected results from their campaign at the time, which featured “Queer Eye For the Straight Guy” actor Thom Filicia as spokesman. The company has hired a new advertising agency, Deutsche Inc., in efforts to attract a younger customer.

For the quarter Pier 1 posted a year-over-year same-store sales plunge of 6.3%, and so far this year, they are down 3.7%. Executives predicted a same-store sales drop of 2% to 6% in December and a Q4 dip in the low-to-middle single digits. The chain has especially faced competition from discounters like Target, which are cutting into their share of the specialty home furnishings sector, officials said.

To combat its recent performance the company will concentrate on stronger seasonal offerings and broaden price-points for items such as glasses, said Marvin J. Girouard, the Company’s Chairman and CEO. “We have always worked through these challenges,” said Girouard, who predicted that same-store sales would turn around next year.

During the quarter Pier 1, which currently operates about 1,000 units in North America, opened 31 stores and closed 11. For the year, it plans to open 110 and close 40. Next year, the company will open from 70 to 75 units. Pier 1 is also converting the name of all 50 of its Cargokids children’s stores to Pier 1 Kids by March and plans on opening 10 to 15 of those units next year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.