That means At Home doesn't have to worry about online shopping cannibalizing in-store sales or lowering profit margin. At Home Group Inc., for example, stands out: While products are listed online, they can only be purchased in one of the Plano, Texas-based company's 180 stores, or delivered by a third party. Here is a pretty useful suggestion from the Bloomberg article:Ĭompetitors are finding success in other ways. Take, for instance, one problem that is plaguing the company, heavy delivery cost from its website sales which also tend to cannibalize their retail shop sales. After all, the likes of JD.com ( JD) and others are buying and/or partnering physical stores left, right and center. Students of Chinese e-commerce will realize that having a lot of stores isn't necessarily a disadvantage. That's emblematic of the broader struggles the retailer faces getting shoppers in its doors.Īnd, there are quite a lot of these stores: Most of the products are on sale - an entire floor is dedicated to clearance items - but no one's in the checkout line. Inside Pier 1's store on Manhattan's Upper East Side, it's quiet as a library on three recent visits, even as the city streets outside are bustling. Other observers, like the one from Bloomberg, confer: So, we know the opportunity is there for Pier 1. I think the biggest driver is the traffic that we're just not getting the traffic into the stores you heard us mention in our remarks that conversion continued to be strong in the store. The biggest problem is simply this (Q3CC): The company appointed Cheryl Bachelder as new CEO, and she has some experience in turning failing companies around with restaurant chain Popeyes. That is, there are some investors betting on a revival, and while far from a given, there is something to be said for that. What you don't see on this chart is that recently, very good money has been made by some astute investors who got on board late last year: We'll get to that in a minute, but first, consider the scale of the crisis which can't be all that much of a surprise, given the above operational development: This seems another case of the retail slaughter that has been plaguing many chains, but in the case of Pier 1, it's largely self-inflicted, according to management. Pier 1 (PIR) is a home decoration chain and online shopping site that has hit considerable troubles in the form of slumping sales and losses that seem to be accelerating:
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