These Are The 4 Stocks To Buy As Pier 1 Shutters Half Its Stores

As Pier 1 struggles, these 4 retailers could see a bump in sales.

Pier 1 Imports (NYSE: PIR) has been dodging bankruptcy rumors recently, and said earlier this month that it intends to close 450 locations—nearly half of its 942 stores—this year as sales have been continually declining. 

After a disappointing fiscal Q3 report earlier this month, CEO Robert Riesbeck said in a statement, “We believe that we will deliver improved financial results over time as we realize the benefits of our business transformation and cost-reduction initiatives.”

Despite Riesbeck’s optimism, there are doubts that the home decor business can be successfully turned around.

“If I were a betting person, I would bet they will continue to sink,” Steve Dennis, president and founder of SageBerry Consulting, a retail strategy firm, said. “The fundamental problem is the value proposition. That’s the thing that’s broken.”

But as Pier 1 begins to shutter stores, there are four stocks that stand to benefit. According to an analysis by Telsey Advisory Group, At Home (NYSE: HOME), TJX-owned HomeGoods (NYSE: TJX), Target (NYSE: TGT), and Wayfair (NYSE: W) all could see a bump in sales as customers search elsewhere for home decor products.

According to Telsey, 60% of At Home stores, 59% of HomeGoods stores, and 35% of Target stores have a Pier 1 location within three miles. The firm also notes that the home furnishings market in the U.S. totals about $200 billion in sales. 

Telsey analyst Cristina Fernandez estimates that if Pier 1 shuttered all of its stores, At Home, Wayfair, and HomeGoods would likely see a 100-basis-point lift in sales, while Target would see a 20-basis-point lift in sales.

One store that isn’t on Telsey’s list of stores that stand to benefit from Pier 1’s closures is Bed Bath & Beyond (NASDAQ: BBBY).

While the firm said that Bed Bath & Beyond has the most geographic overlap with Pier 1, with 47% of its stores within one mile of a Pier 1 location and 59% of them within three miles, the company hasn’t been able to “capitalize on Pier 1’s displaced sales… given its own struggles.”

Bed Bath & Beyond is in the midst of its own turnaround. New CEO Mark Tritton, who was poached from Target, is working to turn the retailer’s ship around, but the benefit Bed Bath & Beyond could see from Pier 1’s struggles could be lost to Wayfair or one of the other four if it doesn’t act quickly.

By the way, if you liked this article, you'll LOVE this Meaty free training I just published on the top 3 questions and challenges every investor faces AND how to overcome them. It's titled "10k into $2.4 Million in 18 months" and you can grab it for free here


There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Company’s software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.

FREE TRAINING - TRADERSPRO PRESENTS: Retire In 18 Months With $2.4 Million?

Join Us Now
X