Target and Walmart locations eclipse what's left of Pier 1
Furniture and home goods retailer Pier 1 ($NYSE: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 $59 million.
In addition to former department store giants like Macy’s, the retail apocalypse has been affecting the home furnishing market especially hard. One-stop shops like Amazon, Target, and Walmart continue to flourish while stores with more specific offerings like Bed Bath & Beyond ($NASDAQ:BBBY) struggle to keep up.
But, until the death of in-person shopping comes for Walmart ($NYSE:WMT) and Target ($NYSE: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.
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