Add Pier 1 Imports to the list of retailers struggling to adapt to the rise of e-commerce.
After posting a dramatic drop in sales in the fourth quarter, the home goods giant said it might close as many as 45 stores in the coming year, according to BisNow. Pier 1 reported comp-store sales in its final quarter as down nearly 14% year-over-year.
The company has already closed 30 locations due to dwindling sales, and will look to close more when the leases for individual stores expire over the next year, BisNow reports. Pier 1 currently has a portfolio of about 1,000 stores and between 15 to 20% of its stores leases come up for renewal each year.
“If we are unable to achieve our performance goals, our top-line sales targets and reductions in occupancies and other costs, we could close up to 15% of our portfolio,” Pier 1’s interim CEO, Cheryl Bachelder, said in a recent earnings call, according to the report.
Pier 1 is among a number of major retailers that have been hit hard by the popularity of online shopping. Department store giant Sears filed for bankruptcy last year after shuttering more than 725 stores in the last two years. In 2017, kids retailer Toys “R” Us went belly up, though now the company is planning a comeback under a rebranded, digitally-focused operation. [BisNow] – Joe Ward