Pier 1 Reduces Skus To Up Sales
Casual Living Staff -- Casual Living, March 14, 2005
Pier 1 Imports is focused on a less-is-more approach, reducing the number of skus it carries to accentuate a good, better, best segmentation that should improve sales, said Charles Turner, executive vice president and chief financial officer, during the Raymond James Institutional Investor Conference here last week.
“This year we are working hard to bring newness into the stores,” he said. “We have cleared and edited our furniture lines from nine down to six, and four of those are new. We feel that by the end of April, we will be where we want to be.”
Turner said that the company had gone from 4,500 skus down to 3,500 and currently sits between 2,800 and 3,000.
Turner said Pier 1 is taking a hard look at sales per square foot and looking to improve that number by keeping inventory fresh.
In fiscal 2005, he said the company opened 110 stores and closed 40 (including relocations). This year, Pier 1 plans to open 90 and close 20. “We are looking at real estate very carefully,” said Turner. “We don't open stores just to reach a certain number.”