AP Photo/Nati Harnik
Pier 1 Imports is in trouble.
- Pier 1 Imports is currently grasping for life, but for decades it was one of the most popular destinations for home goods and decor, particularly among young adults seeking hip, inexpensive furnishings.
- Founded in 1962, Pier 1 originally catered to "post-World War II baby boomers looking for beanbag chairs, love beads, and incense."
- However, by the turn of the century, Pier 1 had begun to struggle to keep up with competition from e-commerce giants like Walmart and Amazon, as well as from off-price retailers like Wayfair. Here's a closer look at the rise and fall of Pier 1.
- Sign up for Business Insider's retail newsletter, The Drive-Thru, to get more stories like this in your inbox.
- Visit Business Insider's homepage for more stories.
Pier 1 announced this week that it plans to close 450 stores following a period of dwindling sales, after decades or serving as a thriving destination for home furnishings and decor.
The forthcoming closures, which were announced in an earnings call on Monday, will effectively shutter nearly half of Pier 1's 942 stores and are expected to compromise the jobs of thousands of employees. The company also plans to downsize its corporate staff and close select distribution centers.
Like countless other retailers, Pier 1 has suffered under increased competition from e-commerce giants like Amazon and Walmart, while also struggling against the rise of off-price and discount brands like TJ Maxx and Wayfair.
"While the market is growing, so too is competition," GlobalData Retail's Neil Saunders told Retail Dive in April 2019."As much as it is true that Pier 1's aesthetic used to make it distinct, others are now replicating this - at least in parts of their offers."
However, before its sales woes, Pier 1 spent decades selling stylish yet affordable home goods to a demographic largely comprised of young adults furnishing their first homes and starting families. It brought styles like the Papasan chair to the US, becoming an emblematic part of 1960s culture and aesthetics.
As the fate of Pier 1 hangs in the balance, we took a look at the company's humble beginnings as a standalone store in California through its rise to a national home decor destination and its current freefall into possible bankruptcy.