Fort Worth, TX — Pier 1 Imports, Inc. has a 3-year growth plan that includes improving existing stores and expanding its store portfolio.
Fort Worth, TX — Pier 1 Imports, Inc. has a 3-year growth plan to drive sales and further improve profitability in order to increase shareholder value. The plan includes accelerating its e-commerce initiatives, improving existing stores, expanding the store portfolio, and developing infrastructure and technology to enhance business processes and efficiencies throughout the entire organization. The company plans to invest approximately $200 million over the next 3 years in these initiatives, utilizing cash flow from operations. The board has also authorized an initial share repurchase program of up to $100 million.
The 3-year plan includes moving up the timetable for e-commerce; the company expects to be selling online in early summer of 2012. Inside the stores, investments will include a rollout of new fixtures, lighting upgrades and other enhancements. The new fixtures will be rolled out, initially, to higher volume stores. Store remodel plans over the next 3 years range from minor cosmetic improvements to major construction efforts such as new flooring and lighting, structural enhancements and new fixtures. Other investments to improve the company’s existing store portfolio will include new lighting and sign upgrades to select stores, equipment upgrades, such as new HVAC units, and other general leasehold improvements.
“Within the next 3 years, our goal is to achieve sales of $200 per retail square foot and drive our operating margin to at least 10% of sales, and within 5 years to have an online business that contributes at least 10% of revenues,” says Alex W. Smith, president and CEO.
The company also plans to expand its existing store portfolio from 1,046 Pier 1 Imports stores today throughout the United States and Canada to approximately 1,100 Pier 1 Imports stores in the United States and Canada within 5 years. The company currently plans to open approximately 80 stores and close approximately 30 stores as part of its net new store growth initiative. These 80 store openings will consist of both openings in new markets as well as relocations within existing markets.
More information is available at www.pier1.com.