Pier 1 Imports to close up to 145 stores amid sales slump
Struggling home goods retailer Pier 1 Imports said it could close up to 145 of its stores in the coming months amid a significant decline in sales.
The Texas-based company reported a same-store sales decline of 13.7 percent and a net sales decrease of 19.5 percent to $412.5 million in its fourth quarter of fiscal 2019. Pier 1 said it would consider closing up to 45 stores in fiscal 2020, but warned that total could increase to 15 percent of its remaining 973 stores if it is “unable to achieve performance goals, sales targets and reductions in occupancy.”
“We are pleased to be sharing our fiscal 2020 action plan today, which is designed to reset our operating model and rebuild our business for the future,” Pier 1 interim CEO Cheryl Bachelder said in a statement. “As anticipated, our fourth quarter sales and profitability were disappointing and reflect the execution issues we identified earlier in the year and have been working with urgency to correct.
Pier 1’s same-store sales fell 11 percent in fiscal 2019 compared to the same period one year ago. The company closed 30 stores for the full year and it expects at least $100 million in savings from further closures.
Like many traditional retailers, Pier 1 has struggled to maintain sales amid the rise of e-commerce competitors such as Amazon. Payless ShoeSource, Victoria’s Secret and Bed Bath & Beyond are among the companies that have closed stores this year.
CLICK HERE TO GET THE FOX BUSINESS APP
The number of U.S. store closures this year has already surpassed the entire total from last year, with nearly 6,000 locations closing their doors their April, according to CoreSight Research.