Find out how Pier 1 Imports rose to become one of the leading retailers for imported furniture and home accessories with about 1,000 physical stores and an online presence.
Pier 1 Imports is an omnichannel retailer that sells imported furniture, home accents, and other unique home furnishing items. Aside from domestic sources, the company imports its merchandise from Asian countries such as Vietnam, Malaysia, China, the Philippines, India, and Indonesia.
Pier 1 Imports operates in approximately 950 stores in the U.S. and over 80 stores in Canada. It also conducts business in an e-commerce platform. It has its headquarters in Fort Worth, Texas.
Pier 1 Imports history
Pier1 Imports was founded in 1962 in San Mateo California with the aim of offering home solutions to the consumers (Pier 1, 2018). The company began with a single store that traded chairs and love beads to the consumers in the area. The company later expanded and started an office in Fort Worth Texas in 1966 which became the headquarters of the company. In 1966 the company had already established 16 stores in different locations in the US. Pier1 Imports dealt with a mix of incense and furniture to offer an appealing appearance to the house.
In 1970 the company entered the stock market to increase the capital needed for business expansion (Funding Universe, 2018). The initial public offering (IPO) is a technique that is used by a company to increase operations to new local and international market segment by selling some of the company’s shares. The trading was successful as it assisted the company to open over 123 stores that increased the competitiveness of the company in the home product industry (Funding Universe, 2018).PIR is the symbol that is used by the company to trade in the New York Stock Exchange market.
By going public Pier1 Imports was able to open stores in Australia and Europe from the money invested in their shares. The international market expansion was needed for the company to acquire sustainable profitability from production. In 1970 the company stores were experiencing revenue gain due to the acceptance of the company in the US and other nations.
The positive public perception of the company leads to a store in Royal Oak, Michigan to attain $1 million in revenue from the sale of products in the 1979 financial year. Pier1 Imports introduced Preferred Customer Cards in 1988 and 1989 which were aimed at retaining the customers. The card contributed to the increased income reaching $1000 in 1994 from over 120,000 clients using the cards (Pier 1, 2018). The company introduced a design program that was meant to make the products and services to appear unique to the consumers. Pier1 Imports opened Pier Kid in 2001 which offered furniture and accessories to children.
The focus on fashion made the company to develop products that are accepted by children contributing to enhanced performance in the market. In February 2003 Pier1 Imports opened the 1000th store which was an indication of a continuous improvement of the company (Pier 1, 2018). The company has entered the online market to increase the purchases of products in the targeted markets.
The company sells decorations, accessories, housewares, seasonal products, candles, and gifts. The company operates 950 stores in the US and 80 stores in Canada which are used o offer the home products to the consumers (Reuters, 2018). The decorative accessories and furniture are unique to have an increased market share in the targeted regions. In northern America, Pier1 Imports has been able to increase the revenue due to the differentiation of products.
The design program implemented by the company is focused on developing products that will satisfy the different needs of the consumers. The decorative accessories provided are used in the different location of the house for a steady flow of the company. The decorative accessories are rugs, mirrors, pillows, beddings, baskets, ceramics, dinnerware, candle and gifts (Reuters, 2018). The company performs a market analysis which is needed in developing decorative products that will maximize the performance. The evaluation of consumer needs is used in ensuring that the decorative products will increase the revenue of the company. The design used is meant to deal with the small scale and large scale consumers in the market.
The furniture sold by Pier1 Imports is focused on improving the interior and exteriors appearance of the home. The home appearance is a vital aspect of a homeowner as it demonstrates the personality of the individual. The furniture and cushions from Pier1 Imports are aimed at providing a satisfying feeling to the consumers in the market. The furniture is used in the living, dining, bedroom, office, kitchen and sunroom areas in the home (Reuters, 2018). Pier1 Imports goods are imported from countries known for offering quality home decorative accessories and furniture.
The countries of import include Vietnam, China, Malaysia, the Philippines, Indonesia, and India. Pier1 Imports also gets from domestic sources in the US and Canada to offer products that will improve the home appearance and design. The remodeling of the home should use accessories and furniture that will improve appearance. The importation of quality products makes the company widely accepted by the consumers in the market.
The accessories merchandise is made from metal and natural materials. The natural materials used by Pier1 Imports are pine, acacia, oak, rattan and other wood products. The products are stained, painted and finished to meet the standards of the consumer. The upholstered wood finishes are done by professionals to make the product attract a large market share.
Physical and online operation
The physical presence of Pier1 Imports is from the stores that are operated by the company to offer the consumers with the intended products. The company stores provide the clients with an opportunity to view a wide range of products in the market. The evaluation of the market assists the top management to discover the appropriate area to set up a store for increased performance in the market.
Since its establishment, Pier1 Imports has developed a plan that will enforce the stores to offer quality furniture and accessories for home design. The company has stores in Canada, US, Europe and Australia which are used to improve the revenue from the sale of home products. The attention is on customer satisfaction which is crucial for a company to have an extended competitive edge in the targeted market. The staff, logistics, and sales are done with a primary focus of acquiring an increased level of productivity in the market.
Physical stores are essential for a company to have a proper interaction with the various stakeholders in the market. The interactions with the stakeholders are meant to develop a plan that is widely accepted in the market. Merchandising is an essential aspect of Pier1 Imports to acquire a sustainable competitive advantage in the market. The merchandising is used to determine the product lines to use for a particular market to boost sales volume and profitability of the company. The building used should be unique to make them popular with the targeted consumers. The store used by Pier1 Imports has an average retail space of 7,900 square feet which is used to display the products (Reuters, 2018). The store coverage is large to increase the products that a customer can choose from ranging from home accessories and furniture.
Technology advancement has increased the number of companies willing to operate online. Pier1 Imports has online operations which are used to increase the sales volume by covering a large area. The products are classified properly to make them accessible to the consumers. Pier1 Imports classification of products includes furniture, rugs, curtains, dining, pillows, décor and lighting products.
The categories assist an individual to purchase the product by adding it to the cart and make payment online. The colorful products and creativity of the staff are used by the company to turn website visitors into buyers. An individual can purchase the right furniture and décor by evaluating the products that are displayed on the website. The artisans used in developing the products consider the fashion trends to improve the acceptance of products to the consumers. Proper evaluation of fashion trends assists in developing decorative accessories that will enhance the production level of the company.
An interactive website is used by the company with the aim of increasing the number of people willing and able to purchase the home products. The information provided is adequate for a consumer to make the appropriate decision. The website should be compatible with many devices by having a website design that has a small screen size. The compatibility with Smartphone makes it likely for the company to have many visitors who later become consumers of the company. The website is used to display offers to the consumers which are vital in maximizing the performance in the home design industry.
Pier 1 Imports partners
A business partnership is needed for an extended performance of the company in the targeted market. The evaluation of consumer needs is used to identify a business partner that will contribute to enhanced productivity in the industry. Pier1 Imports partners are used to improve the performance of the company in the home design industry. The home design consumers have diverse needs requiring the management to come up with products that will be accepted in the market.
Investors are the most important partners as they offer Pier1 Imports with the intended capital for business expansion. The investors provide money in exchange for the company’s share which is an exercise that improves the productivity in the market. The company partners with exporting companies in Vietnam, India, China, Malaysia and Indonesia to acquire the needed raw materials from the regions. The partnership with domestic traders is needed for an increased number of accessories and furniture to the consumers.
Pier1 Imports has partnered with Intermark Inc to improve the design of the products offered to the consumers (New York Times, 2018). The partnerships involve importing specialized products for home furnishing as per client request. It is necessary for a company to consider a partnership with people or organizations that will assist in accomplishing the short term and long term goals of production.
Pier1 Imports is listed on the New York Stock Exchange market requiring developing plans that will improve the income of the shareholders. The strategies implemented by the management are used to achieve the profitability level of the company. The differentiation strategy is used in ensuring that the decorative accessories and furniture used by the company appear unique to the consumers.
The uniqueness is used by the management in dealing with the increased level of competition in the market. Strategies are formulated by the top management of the company considering the interests of different stakeholders in the market. The consideration of stakeholders interests and needs is essential in coming up with a strategy that will provide an increased level of performance in the market.
The business strategies implemented by Pier1 Imports consider the changing external business environment to develop a plan that will maximize production. The company has been able to be into operations for more than 50 years opening over 1,000 stores due to the business strategy implemented by the management. The e-commerce strategy is based on the changing technological factor in improving productivity using the company’s website.
The financial reports are used by the management and stakeholders to evaluate the performance of the company. It is important to focus on a proper financial reporting for a suitable decision-making process. The financial reports provide the shareholders with the value of the shares which is vital in attracting a large number of investors. The share value increases with an increase of profitability of the company.
Pier 1 Imports Inc (PIR) shares are valued at 2.22 USD with the lowest value of the share recorded at $2.15 and the highest share value is $5.92 (Reuters, 2018). The management plans are aimed at increasing the shares value for the shareholders to get the desired income from investment. The annual sales volumes for 2014 to 2018 are 1.77, 1.88, 1.89, 1.8 and 1.8 billion USD. The stability in sales volume is due to the high customer retention rate in the home design market.