It’s not just the obvious suspects — namely Walmart and Target — that have the potential to benefit from the liquidation of Pier 1 Imports.
Home Goods and Bed Bath & Beyond both have a powerful opportunity to leverage Pier I closures, according to a report by foot traffic analytics firm Placer.ai. The report noted that cross-shopping patterns can be especially important for a brand like Pier 1, which shows a strong element of being part of a ‘multi-trip’ journey, with 30% of its shoppers are coming from another retailer directly before visiting a Pier 1, while over 33% visit one immediately after.
Placer.ai analyzed cross-shopping percentages between January through May in 2018, 2019, and 2020 to create a rough idea of which brands may be best positioned to take in Pier 1’s former customer base. The obvious starting point is Walmart and Target, though these numbers are clearly buoyed by the fact that essentially everyone shops at Walmart and Target in a 5 month period. Though it does further indicate the power of these brands and the near-endless opportunities they can avail themselves of, the report said.
The next group is dominated by the kings of the do-it-yourself hill in Home Depot and Lowe’s who both see over 40% cross-shopping with Pier 1. Though the ready-made element of Pier 1 isn’t the core focus for these brands, there is still something to be said for a potential uptick in traffic.
“The next tier may be the most interesting,” stated Ethan Chernofsky, VP marketing at Placer.ai. “Home Goods and Bed, Bath & Beyond see very high levels of cross-shopping with the average actually weighed down by pandemic closures and shopping patterns in 2020. The result is that both brands have a powerful opportunity to leverage these closures as a means of targeting these audiences to try and fill areas of the gap Pier 1 will leave.”