In the wake of Bed Bath & Beyond’s announcement of its 40 store closures, Pier 1 Imports joins the long list of retailers shutting brick-and-mortar locations.
At the same time S&P Global Ratings warned of a increased potential for a bankruptcy filing or debt restructuring from Pier 1, according to a report in USA Today.
Pier 1 Imports said during its latest earnings call that it will close up to 45 more stores in 2020 as leases expire. The company closed 30 locations in fiscal 2019.
“For perspective, approximately 15% to 20% of our leases are up for renewal each year,” said Cheryl Bachelder, Interim CEO and Director of Pier 1 Imports in the earnings call.
Bachelder said Pier 1 Imports is conducting a review to better understand its bricks-and-mortar and overall performance.
“We see opportunities to improve our economics through merchandising and customer experience strategies that are expected to drive topline sales and merchandise margin as well as looking to reduce occupancy and other costs to improve overall store contribution,” said Bachelder.
She said it’s important to understand that Pier 1 stores can be traced to approximately 85% of its transactions.
“We’re committed to having a substantial brick-and-mortar presence as a cornerstone of our go-forward strategy,” said Bachelder. “That said, we know it’s imperative to optimize the fleet size over time, and we’re taking a critical lens to the portfolio to ensure we’re in the right place with the stores that have the right economics.”