Pier 1 hires Cushman & Wakefield to review its real estate portfolio

Pier 1 Imports has hired Cushman & Wakefield to manage its portfolio of more than 1,000 retail stores with the goal of reducing costs, the real estate management company said.

“Cushman & Wakefield will work with Pier 1 Imports to assess and develop a strategy for various locations within the company’s vast store portfolio, helping to gain efficiencies and bring costs down.” Senior Managing Director Todd Kohlbecker said in a statement.

The home furnishings retailer has expanded its e-commerce business in recent years and advanced an omni-channel strategy, giving shoppers the opportunity to order online and pick up products at their neighborhood stores. Executives have maintained confidence in its brick-and-mortar business even as other retailers have been trimming retail locations with the expansion of online shopping.

Last year, Pier 1 came under pressure from the Alden Global Capital hedge fund, which acquired nearly 10 percent of its stock and threatened a proxy fight.

But after losing money in the first half of the year, Pier 1 in December reported better-than-expected profits for its third fiscal quarter, with net income of $13.6 million, and said comparable-store sales increased by 1.8 percent.

Alden subsequently sold more than half its shares.

“The onset of e-commerce has prompted every retailer in the United States to take a strategic look at how they marry e-commerce with brick-and-mortar stores,” Bret Bunnet, Cushman & Wakefield’s Executive Managing Director said in a statement.

“Cushman & Wakefield is uniquely qualified to develop and execute an approach for multi-market locations,” Bunnett continued. “Our work for Pier 1 Imports offers everything from renewals to new leases to right-sizing the retail chain where it’s needed most.”

Pier 1 is expected to report results for its fourth quarter, which ended Feb. 25, in April.

This story was originally published March 1, 2017 at 5:43 PM with the headline "Pier 1 hires Cushman & Wakefield to review its real estate portfolio."