Pier 1 Imports (NYSE: PIR) sells moderately priced, imported home furniture which it sells through its chain of retail stores. Revenue comes from sales of furniture (40% of 2009 sales) and decorative home items (60% of 2009 sales), including floor lamps, vases, candles, and gifts.
The company faces increasing competition from mass retailers. Companies like Wal-Mart and Target are able to lure away some PIR's more price sensitive customers by offering lower prices. Unable to effectively compete with the mass discounters, Pier 1 attempted to reposition itself as a vendor of more modern merchandise by substituting leather and metal furniture for its more traditional items. The goal of this strategy was to introduce more appealing merchandise while appealing to a higher income demographic.(Read more at Wikinvest )