Pier 1 Imports considers cutting 48% of stores after several quarters of losses

Pier 1 Imports Inc., a national home decor retail chain that includes five North Bay locations, amid reporting another net loss and drop in sales, on Monday announced plans to close hundreds of stores and lay off some employees.

"In order to better align its business with the current operating environment, Pier 1 intends to reduce its store footprint by up to 450 locations," the quarterly financials new release said. That would be 48% of the 936 stores the Fort Worth, Texas-based company said it has open now. It had 942 open as of Nov. 30, the end of the quarter this year, and 987 open a year before.

The reduction in stores would include closing certain related logistics centers and laying off an unspecified number of employees.

“Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision,” said CEO Robert Riesbeck in the announcement of financial results. We thank our team of hard-working associates for their commitment to Pier 1 and to serving our customers.”

Bloomberg first reported on Jan. 3 rumblings of major store closings at Pier 1. It noted that the company previously “posted eight straight quarters of declining sales and six consecutive quarterly losses as shoppers defected to new e-commerce players like Wayfair and conventional giants like Walmart that have expanded in the category.”

Riesbeck, a turnaround expert, was brought in as CEO in November, almost a year after Pier 1 replaced a previous CEO and said it would explore strategic alternatives, according to the news agency.

Third-quarter net sales decreased 13.3% to $358.4 million. Sales at comparable stores decreased 11.4% over the same period, a dip attributed primarily to lower consumer traffic as the later, shorter shopping season shifted more holiday revenue into the fiscal fourth quarter.

Net loss for the quarter was $59.0 million, or $14.15 per share, that includes about $24 million in costs related to restructuring and stores closures.

Bloomberg reported that Pier 1's annual report shows it mostly leases its property, including its corporate headquarters, stores and almost all of its distribution and fulfillment centers.