Pier 1 slims mix to fatten sales
September 14, 2004,
FORT WORTH, Texas -- Pier 1 plans to reduce the number of skus carried at its stores over the next year by 10 to 15 percent. The move is part of an effort to widen aisles, reduce clutter and, thus, sell more merchandise, said they chairman and CEO Marvin Girouard during the company’s second quarter conference call today.&p>"In the past year, we have been clearing space to create a stronger visual presentation," he said. "We had too many skus for our 9,000-square-foot size."&p>Reductions will take place "across the board, beginning in tabletop," Girouard said. He explained that, for example, instead of offering seven dining room sets, the company would offer five, or instead of six bedroom sets, three or four. "We need to offer a choice, but not too broad a choice," Girouard said.&p>Specifically, he said the company had already cut back 10 percent of the overall goal, would reach approximately 30 to 40 percent by the end of the year, 60 percent by next summer and 100 percent by early fall.