1. Strategic Plan
(Note in edit view the student has
comments on each slide)
MBA Student Project
(Presentations by MBA Students are
considerably more prescriptive in delivery
than an undergraduate presentation)

2. Current Vision & Mission Statements
Vision Statement
• Non-existent
Mission Statement
• Written as a “corporate
profile”
• Listed under investor
relations
• Missing mission statement
components:
– Markets
– Concern for survival, growth,
and profitability
– Concern for public image

3. Current Mission Statement
Corporate Profile
• Pier 1 Imports is the original global importer of imported decorative home
furnishings and gifts.
• Our authentic and distinctive merchandise reflects the diverse cultures of the
many countries we explore. We offer a broad assortment of items and styles, with
something for everyone–useful, decorative and the purely whimsical. We help our
customers reflect their personal style.
• Our stores are a treat for the senses. Fragrant candles, the colors and patterns of
dinnerware, textured carvings and woven textiles all combine to create an eclectic
environment.
• Our image is quirky, and our logo is iconic. We offer a special shopping experience,
whether in store or online. We display our wares so that each visit is a treasure
hunt where customers can find long-time favorites as well as something new. It's
the thrill of the bazaar. The expected and the unexpected.
• Our associates bring our brand to life. We value their creativity, talent and
dedication.
• In short, there is only one authentic global importer that brings the world home
for our customers– the ever-original, ever-evolving Pier 1 Imports.

4. New Vision Statement
• To create the most unique environment for
customers to discover home furnishings and
décor from around the world.

5. New Mission Statement
•
•
•
Pier 1 Imports is the original global importer of imported decorative home
furnishings and gifts (2). Our authentic and distinctive merchandise reflects the
diverse cultures of the many countries we explore. We offer a broad assortment of
items and styles, with something for everyone–useful, decorative and the purely
whimsical. We strive to continue to help our customers reflect their personal style
(1). Pier 1 Imports is committed to searching around the globe to bring our
customers unique home décor (5). Our stores are a treat for the senses. Fragrant
candles, the colors and patterns of dinnerware, textured carvings and woven
textiles all combine to create an eclectic environment (6).
Our image is quirky, and our logo is iconic. We offer a special shopping experience,
whether in one of our North American stores (3) or online (4). We display our
wares so that each visit is a treasure hunt where customers can find long-time
favorites as well as something new. It's the thrill of the bazaar. The expected and
the unexpected (6). We are also devoted to helping better our society by
participating in charity programs. We have a responsibility to partner with charities
and customers to make our world a better place (8). Our associates bring our
brand to life. We value their creativity, talent and dedication (9).
In short, there is only one authentic global importer that brings the world home
for our customers– the ever-original, ever-evolving Pier 1 Imports (7).

6. Current Organizational Chart
Chairperson
&
Board of Directors
CEO
&
President
CFO
VP Planning &
Allocations
VP Merchandising
VP Human
Resources
VP Stores
VP General Counsel
VP Business
Development &
Strategic Planning
VP Marketing &
Visual
Merchandising

7. Problems with Current Organizational
Structure
• Dual titles
– CEO & President
• Poor classification of necessary functional
business units
• Fails to include necessary managers at the
divisional level

8. Proposed Organizational Chart
Chairman &
Board of
Directors
CEO
CFO
CSO
CIO
HRM
COO
CLO
R&D
Region 1
President
Region 2
President
Region 3
President
Region 4
President
Region 5
President
CMO
CTO

9. Organizational Chart Improvements
• Eradicates dual titles
• Necessary functional business units are more
evident
• Provides a distinct unity of command
• Reporting relationships are clearly defined
• Allows for a divisional structure by geographic
region
– Each region can adapt to regional trends
independently of one another

10. Company Worth Analysis
Company Worth Analysis
Stockholders' Equity
Net Income x 5
(Share Price/EPS) x Net Income
Number of Shares Outstanding x Share Price
Method Average
$537,131,000
$647,220,000
$2,101,873,475
$2,104,257,820
$1,347,620,574

11. Industry Information
• Retail  Specialty Retail  Home
Furnishing Stores
• The majority of statistics and information
presented focus on specialty retail
– This is the classification used by Standard &
Poor’s
– Competitors were identified as firms within
this classification that focus on home
furnishings

12. Note on Fiscal Periods
• Pier 1 uses 5-4-4 (week) quarterly accounting
periods
• Fiscal year ends on the Saturday that is closest
to February 28th
• Fiscal 2013 ended on March 2, 2013
– Thus, the strategic plan focuses on fiscal 2014,
2015, and 2016
• Every few years the fiscal year will consist of
53 weeks instead of 52 weeks

13. Competitive Profile Matrix (CPM)
Competitive Profile Matrix (CPM)
Pier 1 Imports
Critical Success Factors
Bed, Bath, &
Beyond
Williams - Sonoma
Weight
Rating
Score
Rating
Score
Rating
Score
Advertising
0.14
2
0.28
3
0.42
1
0.14
M-Commerce
0.08
2
0.16
3
0.24
4
0.32
Customer Service
0.09
3
0.27
2
0.18
4
0.36
Uniqueness of Products
0.07
4
0.28
1
0.07
2
0.14
Number of Products Offered
0.06
2
0.12
4
0.24
3
0.18
Employee Satisfaction
0.05
4
0.20
2
0.10
3
0.15
Profit Margin
0.08
3
0.24
4
0.32
2
0.16
Customer Loyalty
0.05
4
0.20
2
0.10
3
0.15
Market Share
0.06
2
0.12
4
0.24
3
0.18
Product Quality
0.10
4
0.40
2
0.20
3
0.30
E-Commerce Site
0.11
2
0.22
3
0.33
4
0.44
Price Competitiveness
0.11
3
0.33
4
0.44
2
0.22
Totals
1.00
2.82
2.88
2.74

14. External Factor Evaluation Matrix (EFE)
External Factor Evaluation Matrix (EFE)
Weight Rating Weighted Score
Opportunities
1. Europe's ongoing recession (buy our imports cheaper)
0.03
3
0.09
2. China's slow growth (buy our imports cheaper)
0.04
3
0.12
3. US personal savings rate projected to decrease from 4.3% to 3%
0.07
3
0.21
(S&P)
4. Weak housing market (consumers focusing on improving home
0.05
2
0.10
themselves)
5. Gift card popularity (4.6% increase in gift card sales noted by
0.03
3
0.09
S&P)
6. E-commerce sales on the rise (currently averaging 5.2% for retail
0.10
2
0.20
stores)
7. M-commerce sales expected to quadruple to $31 billion in 2017
0.09
2
0.18
(S&P)
8. Consumers growing trend toward supporting socially
0.03
4
0.12
responsible firms
9. Customers rising expectations of superior customer service
0.04
3
0.12
10. Increase in the usage of specialty store credit cards
0.07
3
0.21
1.
2.
Threats
Unemployment rate continues to hang around 7.5% (S&P)
Weight Rating Weighted Score
0.03
2
0.06
Federal government requirement of mandatory health insurance
0.02
3
0.06
Expiration of payroll tax holiday (2% tax increase for consumers)
0.08
3
0.24
4.
Home ownership declining (currently down to 65.4%)
0.08
2
0.16
5.
M-commerce allows for instant comparison of prices among
competitors
0.07
2
0.14
6.
Weakening of the American dollar (imports cost more)
0.04
2
0.08
0.05
2
0.10
0.03
3
0.09
0.03
2
0.06
0.02
1.00
2
0.04
2.47
3.
7.
Customers seeking online retailers that do not charge tax
(cheaper prices)
8. Big-box stores / category killers predominate market
9. Gasoline prices continue to rise (recent average of $3.70 per
gallon)
10. Import regulations may become more strict
TOTALS

15. Internal Factor Evaluation (IFE)
1.
2.
3.
4.
5.
6.
7.
8.
Internal Factor Evaluation Matrix (IFE)
Strengths
Weight Rating Weighted Score
Same-store sales have increased each year for 3 straight years
0.02
3
0.06
Store openings exceeded store closings during 2013
0.03
3
0.09
Solid reputation for quality and a diverse inventory
0.05
3
0.15
Superior customer service
0.06
3
0.18
Gross profit has increased each of the past 3 years
0.07
3
0.21
Sales per retail square foot increased from $168 in 2011 to $198 in
0.08
4
0.32
2013
Operating income has increased each of the past 3 years
0.06
3
0.18
Long term growth rate (5 yr) is better than the top two
0.04
3
0.12
competitors' rate
New e-commerce website launched during 2013
0.08
3
0.24
9.
10. Nearly all merchandise is private label
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
0.04
4
0.16
Weaknesses
Weight Rating Weighted Score
Many stores need refurbishing and updating
0.10
1
0.10
Net income fell 23% from $168.9 million in 2012 to $129.4 million
0.04
2
0.08
in 2013
Earnings per share dropped from $1.50 in 2012 to $1.22 in 2013
0.05
2
0.10
Inventory turnover ratio of 4.70 is above the industry average of
0.04
2
0.08
3.40
P/E ratio of 17.7 is below the industry average of 20.6
0.04
2
0.08
Older information systems sometimes slow down business
0.05
1
0.05
processes
Inability to effectively participate in price matching (private label
0.08
1
0.08
inventory)
Some customer traffic lost due to our many stand alone stores
0.02
2
0.04
Customer complaints of feeling that stores are cluttered and hard
0.03
2
0.06
to explore
Return policies are more strict than those of our top competitors
0.02
TOTALS
1.00
2
0.04
2.42

16. Boston Consulting Group (BCG) Matrix
(Note Divisional Data is not clear)
Relative Market Share Position
Medium
.50
High
1.0
High +20
Industry
Sales
Growth
Medium 0
Rate
(Percentage)
Low
-20
Low
0.0
Star
Question Mark
Cash Cow
Dog

17. Internal-External (IE) Matrix
The Total IFE Weighted Scores
Strong
4.0 to 3.0
4.0
I
Average
2.99 to 2.0
II
Weak
1.99 to 1.0
III
3.0
IV
V
VI
VII
VIII
IX
High
The
EFE
Total
Medium
Weighted
Scores
2.0
Low
1.0

18. SWOT Matrix
SO Strategies
1 Purchase 10% more of our imports from Europe and China versus other countries (S1,S2,S3,O1,O2)
2 Open 75 new Pier 1 stores (S1,S2,S5,O3,O4)
3 Encourage the purchase of gift cards as customers check out, especially around Christmas (S3,O5)
4
ST Strategies
1 Provide 10% discount & free shipping to store nearest the customer for online purchases (S9,T7)
2 Focus advertising on the exclusiveness and uniqueness of our private label (S3,S10,T8)
3 Allow customers to design rooms on our website using store merchandise as the décor (S9, T8)
4 Enable customers shopping online to create an account that remembers items on their "wish list" (S9, T8)
WO Strategies
1 Increase Pier 1 credit card applications by 20% (W2,O10)
2 Provide lighting updates and refurbishing to 150 stores (W1,O9)
3 Extend return policy from 45 days to 90 days (W10,O9)
4 Implement new technology and computers in the oldest 200 stores (W6,O9)
WT Strategies
1 Shift all full-time sales associates to part-time (W2,T2)
2 Give managers authority to provide discounts on similar items price matched using a mobile phone (W7,T5)
3 Place seasonal items 25% off a week before the season ends (W2,T3)
4 Position new store openings near major malls and retailers (W8,T8)

19. SPACE Matrix
Internal Analysis:
Financial Position (FP)
Inventory Turnover is high at 4.7
Liquidity - Current Ratio is 2.7
P/E Ratio of 18.79
Working Capital Increased by $5 M
Net Income Fell 23% from Last Year
Financial Position (FP) Average
Internal Analysis:
Competitive Position (CP)
Market Share
Product Quality
Customer Loyalty
Technological Know-how
Control over Suppliers and Distributors
Competitive Position (CP) Average
3
5
4
3
3
External Analysis:
Stability Position (SP)
Price Range of Competing Products
Technological Changes
Demand Variability
Competitive Pressure
Ease of Exit from Market
-4
-2
-4
-3
-3
3.6
Stability Position (SP) Average
-3.2
-6
-2
-2
-4
-2
External Analysis:
Industry Position (IP)
Gross Margin
Long Term Growth Rate
Ease of Entry into Market
Financial Stability
Extent Leveraged
-3.2 Industry Position (IP) Average
3
5
3
4
2
3.4

20. SPACE Matrix
FP
Conservative
Aggressive
7
6
5
4
3
2
1
CP
-7
-6
-5
-4
-3
-2
-1
1
2
3
4
-1
-2
-3
-4
-5
-6
-7
Defensive
Competitive
SP
X-axis
Y-axis
0.2
0.4
5
6
7
IP

21. GRAND Matrix
Rapid Market Growth
Quadrant II
Quadrant I
Pier 1
Weak
Competitive
Position
Strong
Competitive
Position
Quadrant III
Quadrant IV
Slow Market Growth

22. QSPM #1 (note alternative strategies are explained in the edit
view of powerpoint)
New
Technology
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Store
Refurbishing
Weight
Opportunities
Europe's ongoing recession (buy our imports cheaper)
0.03
China's slow growth (buy our imports cheaper)
0.04
US personal savings rate projected to decrease from 4.3% to 3%
0.07
Weak housing market (consumers focusing on improving home
0.05
themselves)
Gift card popularity (4.6% increase in gift card sales noted by
0.03
E-commerce sales on the rise (currently averaging 5.2% for retail
0.10
stores)
M-commerce sales expected to quadruple to $31 billion in 2017
0.09
Consumers growing trend toward supporting socially
0.03
responsible firms
Customers rising expectations of superior customer service
0.04
Increase in the usage of specialty store credit cards
0.07
AS
0
0
0
0
TAS
0.00
0.00
0.00
0.00
AS
0
0
0
0
TAS
0.00
0.00
0.00
0.00
0
0.00
0
0.00
4
0.40
1
0.10
4
0.36
1
0.09
0
0.00
0
0.00
3
0
0.12
0.00
4
0
0.16
0.00
Weight
0.03
AS
0
TAS
0.00
AS
0
TAS
0.00
0.02
0
0.00
0
0.00
0.08
0
0.00
0
0.00
0.08
0
0.00
0
0.00
0.07
3
0.21
1
0.07
0.04
0
0.00
0
0.00
0.05
2
0.10
1
0.05
0.03
0
0.00
0
0.00
0.03
0
0.00
0
0.00
0.02
0
0.00
0
0.00
Threats
1. Unemployment rate continues to hang around 7.5% (S&P)
2. Federal government requirement of mandatory health insurance
3. Expiration of payroll tax holiday (2% tax increase for consumers)
4. Home ownership declining (currently down to 65.4%)
5. M-commerce allows for instant comparison of prices among
competitors
6. Weakening of the American dollar (imports cost more)
7. Customers seeking online retailers that do not charge tax
(cheaper prices)
8. Big-box stores / category killers predominate market
9. Gasoline prices continue to rise (recent average of $3.70 per
gallon)
10. Import regulations may become more strict

23. QSPM #1
New
Technology
Store
Refurbishing
Weight
Strengths
Same-store sales have increased each year for 3 straight years
0.02
Store openings exceeded store closings during 2013
0.03
Solid reputation for quality and a diverse inventory
0.05
Superior customer service
0.06
Gross profit has increased each of the past 3 years
0.07
Sales per retail square foot increased from $168 in 2011 to $198 in
0.08
2013
Operating income has increased each of the past 3 years
0.06
Long term growth rate (5 yr) is better than the top two
0.04
competitors' rate
New e-commerce website launched during 2013
0.08
Nearly all merchandise is private label
0.04
AS
1
1
2
2
2
TAS
0.02
0.03
0.10
0.12
0.14
AS
4
4
3
3
3
TAS
0.08
0.12
0.15
0.18
0.21
1
0.08
4
0.32
2
0.12
3
0.18
1
0.04
3
0.12
3
0
0.24
0.00
1
0
0.08
0.00
Weaknesses
Weight
1. Many stores need refurbishing and updating
0.10
2. Net income fell 23% from $168.9 million in 2012 to $129.4 million
0.04
in 2013
3. Earnings per share dropped from $1.50 in 2012 to $1.22 in 2013
0.05
4. Inventory turnover ratio of 4.70 is above the industry average of
0.04
3.40
5. P/E ratio of 17.7 is below the industry average of 20.6
0.04
6. Older information systems sometimes slow down business
0.05
processes
7. Inability to effectively participate in price matching (private label
0.08
inventory)
8. Some customer traffic lost due to our many stand alone stores
0.02
9. Customer complaints of feeling that stores are cluttered and hard
0.03
to explore
10. Return policies are more strict than those of our top competitors
0.02
AS
1
TAS
0.10
AS
4
TAS
0.40
2
0.08
1
0.04
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
4
0.20
1
0.05
2
0.16
1
0.08
0
0.00
0
0.00
1
0.03
3
0.09
0
0.00
0
0.00
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
TOTALS
2.65
2.57

24. QSPM #2 (you could do two QSPM for different Divisions,)
Online
Discount
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Mobile
Matching
Weight
Opportunities
Europe's ongoing recession (buy our imports cheaper)
0.03
China's slow growth (buy our imports cheaper)
0.04
US personal savings rate projected to decrease from 4.3% to 3%
0.07
Weak housing market (consumers focusing on improving home
0.05
themselves)
Gift card popularity (4.6% increase in gift card sales noted by
0.03
E-commerce sales on the rise (currently averaging 5.2% for retail
0.10
stores)
M-commerce sales expected to quadruple to $31 billion in 2017
0.09
Consumers growing trend toward supporting socially
0.03
responsible firms
Customers rising expectations of superior customer service
0.04
Increase in the usage of specialty store credit cards
0.07
AS
0
0
0
0
TAS
0.00
0.00
0.00
0.00
AS
0
0
0
0
TAS
0.00
0.00
0.00
0.00
0
0.00
0
0.00
4
0.40
1
0.10
1
0.09
4
0.36
0
0.00
0
0.00
3
0
0.12
0.00
4
0
0.16
0.00
Weight
0.03
AS
0
TAS
0.00
AS
0
TAS
0.00
0.02
0
0.00
0
0.00
0.08
0
0.00
0
0.00
0.08
0
0.00
0
0.00
0.07
1
0.07
4
0.28
0.04
0
0.00
0
0.00
0.05
4
0.20
1
0.05
0.03
0
0.00
0
0.00
0.03
0
0.00
0
0.00
0.02
0
0.00
0
0.00
Threats
1. Unemployment rate continues to hang around 7.5% (S&P)
2. Federal government requirement of mandatory health insurance
3. Expiration of payroll tax holiday (2% tax increase for consumers)
4. Home ownership declining (currently down to 65.4%)
5. M-commerce allows for instant comparison of prices among
competitors
6. Weakening of the American dollar (imports cost more)
7. Customers seeking online retailers that do not charge tax
(cheaper prices)
8. Big-box stores / category killers predominate market
9. Gasoline prices continue to rise (recent average of $3.70 per
gallon)
10. Import regulations may become more strict

25. QSPM #2
Online
Discount
Mobile
Matching
Weight
Strengths
1. Same-store sales have increased each year for 3 straight years
0.02
2. Store openings exceeded store closings during 2013
0.03
3. Solid reputation for quality and a diverse inventory
0.05
4. Superior customer service
0.06
5. Gross profit has increased each of the past 3 years
0.07
6. Sales per retail square foot increased from $168 in 2011 to $198 in
0.08
2013
7. Operating income has increased each of the past 3 years
0.06
8. Long term growth rate (5 yr) is better than the top two
0.04
competitors' rate
9. New e-commerce website launched during 2013
0.08
10. Nearly all merchandise is private label
0.04
AS
1
1
0
2
3
TAS
0.02
0.03
0.00
0.12
0.21
AS
2
2
0
3
2
TAS
0.04
0.06
0.00
0.18
0.14
1
0.08
2
0.16
2
0.12
1
0.06
2
0.08
3
0.12
4
0
0.32
0.00
1
0
0.08
0.00
Weaknesses
Weight
Many stores need refurbishing and updating
0.10
Net income fell 23% from $168.9 million in 2012 to $129.4 million
0.04
in 2013
3. Earnings per share dropped from $1.50 in 2012 to $1.22 in 2013
0.05
4. Inventory turnover ratio of 4.70 is above the industry average of
0.04
3.40
5. P/E ratio of 17.7 is below the industry average of 20.6
0.04
6. Older information systems sometimes slow down business
0.05
processes
7. Inability to effectively participate in price matching (private label
0.08
inventory)
8. Some customer traffic lost due to our many stand alone stores
0.02
9. Customer complaints of feeling that stores are cluttered and hard
0.03
to explore
10. Return policies are more strict than those of our top competitors
0.02
AS
0
TAS
0.00
AS
0
TAS
0.00
3
0.12
2
0.08
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
2
0.16
3
0.24
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0
0.00
1.
2.
TOTALS
2.14
2.11

26. Recommendations
Recommendations
Expenditure Cost (3 years)
1) Hire a Chief Technology Officer
$3,300,000
2) Implement new technology/computers to the oldest 200 stores
$10,000,000
3) Provide lighting updates and refurbishing to 150 stores
$15,000,000
4) Provide 10% discount and free shipping to store nearest the customer for online purchases
*
5) Allow managers to give discounts to consumers price matching similar items with a mobile phone
**
6) Open 75 new Pier 1 stores (25 each year)
$142,500,000
7) Purchase an additional 10% of imported goods from Europe & China
***
8) Focus advertising on the exclusiveness & uniqueness of our private label
$136,000,000
Total
$306,800,000

27. EPS/EBIT
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
Common Stock Financing
Recession
Normal
Boom
$103,000,000
$153,000,000
$203,000,000
0
0
0
103,000,000
153,000,000
203,000,000
36,668,000
54,468,000
72,268,000
66,332,000
98,532,000
130,732,000
121,709,128
121,709,128
121,709,128
0.55
0.81
1.07
Debt Financing
Recession
Normal
$103,000,000
$153,000,000
15,340,000
15,340,000
87,660,000
137,660,000
31,206,960
49,006,960
56,453,040
88,653,040
106,222,000
106,222,000
0.53
0.83
Boom
$203,000,000
15,340,000
187,660,000
66,806,960
120,853,040
106,222,000
1.14
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
20 Percent Stock
Recession
Normal
$103,000,000
$153,000,000
12,272,000
12,272,000
90,728,000
140,728,000
32,299,168
50,099,168
58,428,832
90,628,832
109,319,426
109,319,426
0.53
0.83
80 Percent Stock
Recession
Normal
$103,000,000
$153,000,000
3,068,000
3,068,000
99,932,000
149,932,000
35,575,792
53,375,792
64,356,208
96,556,208
118,611,702
118,611,702
0.54
0.81
Boom
$203,000,000
3,068,000
199,932,000
71,175,792
128,756,208
118,611,702
1.09
Boom
$203,000,000
12,272,000
190,728,000
67,899,168
122,828,832
109,319,426
1.12

28. EPS/EBIT
EPS-EBIT Graph
1.20
1.00
0.80
0.60
0.40
0.20
0.00
$103,000,000
$153,000,000
Common Stock Financing
$203,000,000
Debt Financing

29. Projected Income Statement
Note Rational for each line (Student did not use historical
percent change)

30. Projected Balance Sheet

31. Projected Financial Statements

32. Financial Ratios (check the students comment on the edit
view of powerpoint below this slide)
Current Ratio
Quick Ratio
Long Term Debt to Equity
Inventory Turnover
Total Assets Turnover
Accounts Receivable Turnover
Average Collection Period
Gross Profit Margin
Net Profit Margin
Return on Total Assets (ROA)
Return on Equity (ROE)
2011
2.8
1.4
0.0
4.5
1.9
93.1
3.9
0.4
0.1
0.1
0.2
2012
2.7
1.3
0.0
4.8
1.9
95.9
3.8
0.4
0.1
0.2
0.3
Pier 1 Imports
2013
2014
2.7
3.5
1.2
2.1
0.0
0.2
4.8
5.0
2.0
1.7
76.5
79.6
4.8
4.6
0.4
0.4
0.1
0.1
0.2
0.1
0.2
0.2
2015
4.4
2.9
0.3
5.3
1.5
85.4
4.3
0.4
0.1
0.1
0.2
2016
4.2
2.8
0.1
5.5
1.6
87.8
4.2
0.4
0.1
0.1
0.2

33. Cash Ratio
• Firms in Pier 1’s industry often have very high current
ratios as a result of
1) Large quantities of inventory
2) A large amount of accounts receivable
• Thus, many firms in the industry focus on cash ratios
– Depending on the firm, the cash ratio generally runs
between 1 and 2
– Historically, Pier 1 keeps current liabilities relatively low
and cash amounts relatively high
2011
1.3
2012
1.2
Pier 1 Imports
2013
2014
0.9
1.8
2015
2.7
2016
2.5

34. Strategy Comparisons
• Pier 1 currently plans on refurbishing stores
and updating fixtures, but their plans do not
include doing so in 150 stores
• They also plan on implementing new
technology and equipment, but on a much
smaller scale (likely around 80 stores)
• Pier 1 will continue to open stores over the
next three years, but the current estimate is
only 40 stores

35. Strategy Comparisons (continued)
• Even though goods are currently cheaper in China
and Europe, Pier 1 will not be purchasing
additional inventory from these countries
– Per current plans, their percentage of inventory
purchased from different foreign countries will
essentially remain the same
• Pier 1 does plan to focus marketing efforts on the
exclusiveness and uniqueness of their private
label
– However, Pier 1 is not allocating as much of their
marketing budget in doing so as the proposed plan
recommends

36. Strategy Comparisons (continued)
• Pier 1 plans to be more aggressive in utilizing
technological advances, but their current
intentions are not as aggressive as the proposed
recommendations
– Current plans include allowing customers to use a
coupon via their mobile phone
– Pier 1 continues to neglect the concept of price
matching and providing consistent discounts and free
shipping (to stores) to e-commerce shoppers
• At this time Pier 1 has no intentions of hiring a
CTO

37. The End