Furniture and home goods retailer Pier 1 ($PIR) filed for bankruptcy yesterday after closing hundreds of stores over the last several years. Inventory had been rising until hitting a peak in 2018 with 40,000 products and a 7% average discount rate. Product count has been falling ever since.
Last summer, Pier 1’s average discount was at an all-time high at 26%. Product count was at 18,500, down 54% from the previous year. This month, we see a 14% average discount and 21,000 products. On top of that, the Fort Worth, Texas-based company saw sales fall 11.4% in its latest quarter, compared to the same period last year. Pier 1 lost $59 million.
In addition to former department store giants like Macy’s, the retail apocalypse has been affecting the home furnishing market especially hard. One-stop shops like Amazon, Target, and Walmart continue to flourish while stores with more specific offerings like Bed Bath & Beyond ($BBBY) struggle to keep up.
But, until the death of in-person shopping comes for Walmart ($WMT) and Target ($TGT), Pier 1’s failure might work in their favor. For every Pier 1 location, there’s an average of six Walmarts or Targets within a 5-mile radius. So, if Pier 1 was your go-to for couch cushions and decorative soap dishes, there’s a world of opportunity just a short drive away.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.
Further Reading:
- Where Pier 1 may close 450 stores. Don't go, we have good news too!
- Is Pier 1 done? Discounts skyrocket as company executes reverse stock split
- Pier 1 Imports data reflects a bleak outlook for shareholders and stores
