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06/17/2011

Pier 1 Launches Site-to-Store E-Commerce Capability

After a successful nationwide soft launch of its new buy online/pick up in store program, Pier 1.2Go, the retailer will begin actively marketing its capability next week.

"As expected, our preliminary data shows us that the average ticket and units per transaction for orders placed online are higher than the company average," said Pier 1 CEO Alexander Smith during a recent conference call. "Once the customer comes into the store to pick up and pay for their Pier 1.2Go selections, they are adding additional items to their basket, which tells us there is significant upsell potential once the customer is in our stores."

Smith added that Pier 1 is on track for a summer 2012 launch of its e-commerce enabled website, Pier 1.2You, which will allow customers to order products online and choose from among multiple delivery options.

The retailer's belated move into multi-channel retailing follows an earlier exit from the e-commerce channel in 2007. Development of the current sites is part of a three-year growth plan announced in April that includes approximately $200 million in capital investment. The plan's goals include achieving $200 in sales per retail square foot in its brick-and-mortar stores, and having an e-commerce channel that contributes 10% to the retailer's revenues within five years.

During the first quarter of fiscal 2012, which ended May 28, 2011, about half of Pier 1's capital expenditures of $8.4 million went toward the initial rollout of new merchandise fixtures in existing stores, with the other half directed to "technology, projects and infrastructure," according to CFO Charles Turner.

In-store technology projects included "the rollout of cash-stand computer kiosks to all our stores this quarter, with great reviews from associates and customers alike," said Smith. "We also kicked off our new point-of-sale projects and the evaluation process has begun."

For related content see: Building E-Commerce a Key Focus of Pier 1's $200M CapEx Investment

Pier 1 Taking Measured Steps Back into Online Sales