Pier 1 3Q Loss Widens
New York City Pier 1 Imports Inc. said that the company’s loss for the third-quarter ended Nov. 29 widened to $36.9 million from $10 million. Meanwhile, revenue fell 20% to $300.9 million from $374.2 million last year.
The company also said it could face delisting if its stock price does not improve.
CEO Alex Smith, who has been working to reverse falling sales since joining in 2007, said the “raw numbers” were “extremely disappointing, but not a surprise.”
However, he added that merchandise offerings and in-store service are “significantly” better than last year, but the recession and downturn in consumer spending hurt results.
Smith added that the company planned to return to profitability in 2010 but the recession has “slowed our speed and increased our timeline.”
Staples revamps in-store marketing
Staples has signed a multi-year deal with News America Marketing to improve in-store marketing, according to the reports.
News America will create coupon machines, floor ads and other in-store marketing products in more than 1,500 Staples stores nationwide. The changes will go in effect next month.
RadioShack becomes sole owner of Mexico unit
FORT WORTH, Texas RadioShack announced that it has become the sole owner of Radio Shack de Mexico, S.A. de C.V. after purchasing the interest in the joint venture held by Grupo Gigante, S.A.B. de C.V. for approximately $43 million in cash. Radio Shack de Mexico has approximately 200 RadioShack branded stores throughout Mexico.
Commenting on the acquisition, chairman and ceo Julian Day said, “Radio Shack de Mexico represents an attractive growth platform for our company. This is a business we know well through our experience with the joint venture and the RadioShack brand has strong equity among consumers in Mexico.”
RadioShack will operate the stores and related general office, service center and distribution center in Mexico as a wholly-owned subsidiary. All of the stores and support facilities are leased locations. The stores average approximately 1,300 square feet and are primarily located in shopping centers. Radio Shack de Mexico employs approximately 1,200 people.