Pier 1 Reduces Skus To Up Sales
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.
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.”