![]() Next to Pottery Barn, Williams-Sonoma and Crate & Barrel, Pier 1’s prices were less expensive. And, compared to the brick-and-mortar home goods stores where Pier 1 customers actually shopped, Pier 1 seemed expensive: the same or similar items were more affordable elsewhere. Only 13% of Pier 1 customers shopped at Pottery Barn and Crate & Barrel. Part of the rigorous analysis pointed out that 50% of Pier 1 customers shopped at Target, HomeGoods and Cost Plus World Market. ![]() … As a result (of focusing on the wrong competitors) our brand relevance has actually declined, particularly driven by the fact that our value proposition has declined.” … Through rigorous analysis we are now clear that our key competitors are not those guys. Specifically, “I think we had our eyes on the wrong competition… we saw… Williams-Sonoma, Pottery Barn, Crate & Barrel … as our main competitors. James said that Pier 1 Imports had been focused elsewhere. ![]() HomeGoods, Homesense, Rooms to Go and Target were all contenders.īut, Mr. James told analysts that although there was competition from online sellers such as Houzz, Wayfair, Amazon and others, retail competition was incredibly fierce as well. At Pier 1 Imports, management looked at the home goods marketplace and assumed a competitive set incorrectly. Here are three fundamental brand-business principles Pier 1 Imports violated leading to its downfall.īrand leaders tend to believe that they define a brand’s competitive set. James explained his 3-year turnaround plan in the context of the marketing mistakes the chain had made. The answers for the demise of this “quirky” establishment can be found in the January 2018 earnings report for the year ending December 2017. They were the only big national firm with that kind of unique identity.” And, following in a tongue-in-cheek article, “The Enduring Trends That Rule Our Décor,” The New York Times credits Pier 1 Imports as a 1960s retail outlet selling rattan – with all its requisite “Victorian curlicues and exoticism” remaining a furniture item “…that is not going anywhere.” As The New York Times describes the stores’ offerings: Pier 1 Imports had…”a recognizable, quirky aesthetic that drew customers who would drop in just to check out the latest animal umbrella stands, colorful painted plates and woven baskets.” According to a management professor at the University of Wisconsin, “Twenty years ago, you could look at a product and you would really know that it came from Pier 1.
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