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Pier 1 Closing 73 Stores

FORT WORTH-The beleaguered retailer decides to accelerate its store closings after end fiscal 2006 with a 7.1% decrease in same-store sales.

By Jennifer D. Duell | Updated on April 07, 2006

FORT WORTH-Pier 1 Imports Inc. will shutter 73 stores in the next two years, accelerating its store closing schedule by 35% more units than previously announced. Earlier in the year, the retailer said it would close 47 Pier 1 and Pier 1 Kids stores.

The decision to close more stores comes as no surprise. Pier 1 has been challenged by declining same-store sales and has fallen into the red. During fiscal 2006, the chain saw same-store sales decline 7.1% and posted a net loss of $27.5 million, or 32 cents per share. Last year, Pier 1 achieved a profit of $60 million, although same-store sales declined 5.8%.

Pier 1′s chairman and CEO Marvin J. Girouard tried to reassure investors and Wall Street by asserting that the chain is well under way with its turnaround strategy. “We believe that our business will improve through the successful implementation of strategies in the areas of merchandising, marketing and store portfolio rationalization, as well as corporate and field restructuring programs,” he said during the chain’s earnings conference call.

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