TJX - Target and TJX Companies to Benefit From Pier 1's Closures
Pier 1 Imports (NYSE: PIR), known for its eclectic range of home furnishings and decorative items, recently announced the closure of 450 of its stores in order to right-size its business in the face of decreasing revenues. The company faces challenges from increasing competition from discount stores and e-commerce. In its recent fiscal third quarter (ended November 30) earnings report, the company announced double-digit declines in both comparable sales and net sales.
While the home goods store works to close hundreds of stores, other retailers in the space could benefit from the closures. Research company Telsey Advisory Group wrote that Target (NYSE: TGT) and The TJX Company's (NYSE: TJX) HomeGoods stores are potential beneficiaries, as the two retailers have a high percentage of stores within three miles of a Pier 1 location. This means potential market share gains could boost the sales of Target and HomeGoods. Both retailers sell unique, well-priced items for home, as Pier 1 is known for.
Image source: Getty Images.