Commodity Channel Index
|Bid||0.0000 x 1400|
|Ask||0.0000 x 900|
|Day's Range||3.5100 - 3.7500|
|52 Week Range||0.0632 - 15.0000|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 15, 2020 - Apr 20, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.00|
The COVID-19 coronavirus outbreak has sent global markets into bear territory and economies into recession. And as the pandemic stretches on, it's inducing a growing number of bankruptcy filings.Though, in most cases, COVID-19 has simply acted as the straw that broke the camel's back.Consider the retail industry, which has endured a particularly difficult past two months. Most "non-essential" retailers are feeling the pain, However, those that were already overloaded with debt, as well as suffering from long-term declines amid changing tastes and Americans' swelling adoption of online shopping, have been pushed over the edge.But it's not just retail. COVID-19 is forcing companies across several industries to seek out Chapter 11 bankruptcy protection and other types of relief. Consider the energy sector, where the oil declines of 2014-16 weakened a number of exploration and production companies, only to have coronavirus-sparked demand slumps finish off the job. Financially wobbly companies in the restaurant and entertainment industries are starting to collapse, too.Just remember: Bankruptcy filings aren't always "the end." In many cases, Chapter 11 reorganizations and other maneuvers help companies shed significant amounts of debt, allowing them to continue operating as they try to find a new way forward. That said, COVID-19 is threatening to knock a few well-known brand names out of existence entirely.Here are 14 companies whose recent bankruptcy filings can be chalked up to the COVID-19 outbreak. In most cases, these businesses were already showing signs of financial duress - the coronavirus merely delivered the coup de grâce. SEE ALSO: 21 Stocks Warren Buffett Is Selling (And 1 He Bought)
Pier 1 asked a bankruptcy judge to permit it to begin winding down operations. The retailer plans a liquidation sale when the lockdown is lifted.
The home goods retailer is giving up the ghost, entering a liquidation process as soon as bankruptcy courts and coronavirus orders will allow.
(Bloomberg) -- Pier 1 Imports Inc. said it would seek bankruptcy court approval to wind down its brick-and-mortar operations after the coronavirus pandemic made it difficult for the U.S. retailer to find a buyer.The company said in a statement Tuesday it intends to sell its inventory and remaining assets, including its intellectual property and e-commerce business, through the court-supervised process. Pier 1 filed to begin an orderly wind-down “as soon as reasonably possible” after stores are able to reopen following government-mandated closures because of the pandemic.“This decision follows months of working to identify a buyer who would continue to operate our business going forward,” Robert Riesbeck, chief executive officer, said in the statement. “Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of Covid-19, hindering our ability to secure such a buyer.”Pier 1 sought court protection in February with plans to shut about half of its stores and said it was in talks with multiple potential buyers. The Fort Worth, Texas-based company had posted multiple quarters of declining sales and losses amid a raft of new competitors like Wayfair Inc.On March 30, it canceled a scheduled auction for its assets, saying lenders would take ownership of the company. However, the company said it was still in discussions with various parties about how to maximize the value of its assets.Pier 1 is “left with no choice” but to wind down retail operations and look to sell all its remaining assets, attorneys for the company write in court papers. “It is now clear that Pier 1’s future does not involve any brick-and-mortar retail locations,” they said.Read more: Corporate Bankruptcies Delayed Until Virus Carnage Sorted OutSince store-closing sales can’t be held until state-mandated lockdowns are lifted, the retailer is seeking court permission to pay current employees severance and bonuses to discourage them from leaving before the chain can wind down. Pier 1 is also asking its bankruptcy judge to set an auction on July 8 for its its intellectual property and e-commerce business, other court papers show.Bloomberg News reported last month that Pier 1 was expected to receive a revised purchase offer from a company called CSC Generation that would keep open fewer than 100 of the company’s 900-plus locations. The bid was expected after the retailer’s bankruptcy court process was paused while stores are shuttered in accordance with coronavirus containment measures.The case is Pier 1 Imports Inc., 20-30805, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond)(Adds additional detail on process in sixth and seventh paragraphs. Adds case cite)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Pier 1 Imports Inc. has temporarily closed all of its stores across the country, effective March 22, the retailer announced in a press release. The national retailer is also eliminating non-essential expenditures and expenses to preserve liquidity. “With the health and safety of our employees, customers and communities top-of-mind, we are temporarily closing our stores and installing a work from home practice in our home office, as well as taking other precautions for our distribution, fulfillment and customer service center associates as we continue to serve our customers,” said Robert Riesback, the company’s chief executive and chief financial officer, in a prepared statement.
Furniture chain Art Van, with a big presence in the Chicago area, is closing and liquidating all its stores after 61 years.
Experiential retail, while not new, is starting to gain traction with consumers. Investors looking to make money from retail stocks ought to consider companies that understand the consumer's desire for something more.If you didn't see the news, Pier 1 Imports (OTCMKTS:PIRRQ) filed for bankruptcy on Feb. 17. As part of the retailer's plan to survive post-bankruptcy, it is closing up to 450 stores, including all of its Canadian locations. Although you never like to see anyone lose their jobs, the writing had been on the wall for several years. The growth of Wayfair (NYSE:W) likely was the final nail in its coffin. InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn hindsight, it's easy to see how the retailer could have benefited from a business strategy that focused more on experience and less on stuff.In 2020, a 200,000-square-foot complex will open called AREA15, which delivers a customer experience like no other. "Consumers want immersive experiences and environments and that content must be carefully curated and ever-changing, blending one tenant experience with the next and presenting engaging ways to entice customers to share their experiences through social media," stated AREA15 CEO Winston Fisher. * 7 Tarnished Blue-Chip Stocks to Ditch Now Some companies get experiential retail, and some don't. These seven retail stocks get it. Pier 1 did not. Retail Stocks to Buy: VF (VFC) Source: rblfmr / Shutterstock.com It has not been an excellent start to the year for VF (NYSE:VFC), the holding company that owns Vans, The North Face, Timberland and several other well-known brands. VFC stock is down 16.3% year to date (total return) through Feb. 19.How could a company that owns a hot growth brand like Vans be so far underwater so early in 2020? That's a good question. The coronavirus, which caused the temporary closure of 60% of its stores in China, didn't help. However, not all is lost for the retail brand conglomerate. Vans, its skateboard-focused lifestyle brand, is killing it. In the first nine months of VF's fiscal year, Vans sales grew 17% year over year, excluding currency. Part of the company's Active segment, revenues should cross $5 billion for the year. Vans has done an excellent job driving traffic to its stores. As its VP Digital Technology, Matt Weber stated at the National Retail Federation's Big Show in New York City, "Retailers have to do everything to make consumers want to come into the store when they no longer have to."In 2020 and beyond, look for VF to take this attitude at Vans and spread it around. Eventually, investors will catch up with the work it's doing to jazz up the store experience. Lululemon (LULU)Source: Richard Frazier / Shutterstock.com Retail Dive, who covers the retail industry quite effectively, recently highlighted five experiential store concepts to hit New York City. One of them happens to be Lululemon's (NASDAQ:LULU) Flatiron flagship store, where consumers can get their leggings and pants customized while they wait. It goes on to discuss Hub Seventeen, the basement space that doubles as a coffee bar and yoga studio. While I get the experiential aspects of the store, it was the Chicago opening last July of a 20,000-square-foot store that reflected the athletic brand's commitment to the experiential.Twenty thousand square feet in Lincoln Park doesn't come cheap. Of course, when you're as dialed in as LULU is -- up 13.3% YTD and 78% over the past 52 weeks -- bigger is usually better. * 7 Stocks to Buy Over $100 That Are Worth Their Price Tags As I said in December, LULU is likely to be the next Nike (NYSE:NKE). Macy's (M) Source: digitalreflections / Shutterstock.com The obvious choice from the department store crowd would have been Nordstrom (NYSE:JWN), whose NYC flagship store on West 57th is an experiential overload and the largest single-project investment in the retailer's history. Instead, I opted to go the contrarian route with Macy's (NYSE:M), which is having a devil of a time rightsizing its massive real estate footprint.The struggling retailer just opened the first Market by Macy's in Texas. Only 20,000 square feet in size, it is a gathering of approximately 120 brands curated for the local Dallas-area bon vivant. It's not meant to be a massive store where you can find everything under the sun. Instead, it's a store for experimentation and fun. No longer does it need to hit shoppers over the head with 150,000 square feet of space. "Experimenting with different store formats allows retailers to identify the best size and location of stores for individual markets, and smaller footprints enable brand penetration in smaller markets that can't support a large-format store," said David Naumann, vice president of retail marketing at enVista. "We are seeing several brands expand into strip malls that offer the advantage of rents about one-half the cost of traditional malls and offer greater convenience for shoppers."Trading at 0.2 times sales, half the multiple for Nordstrom, this might seem like a Hail Mary. To me, it looks like a smart way to leverage the company's 161-year history. Experiential retail might be the stock's savior. Simon Property Group (SPG)Source: Jonathan Weiss / Shutterstock.com I don't think there's any doubt when it comes to malls that Simon Property Group (NYSE:SPG) is the 100-pound gorilla of retail. Back in February 2018, I recommended the real estate investment trust's stock despite the fact retail was looking less than healthy. "Yes, I realize it's one of the world's largest mall owners, an area of the economy that struggled mightily in 2017, but things are looking better in retail and Simon's up to the challenge of transforming the shopping experience to meet the modern consumer," I wrote at the time. Two years ago, it was yielding 5.1%. Today, that's up to 6%. SPG stock has fallen in value as investors continue to debate the merits of owning retail real estate. While I understand investor fears, Simon is doing everything in its power to remain relevant. Case in point, the company recently announced a partnership with SBE Entertainment Group (operator of restaurants and hotels) and Accor (OTCMKTS:ACCYY), the people behind hotel brands such as Fairmont, Sofitel, Raffles and many others. The partnership -- to be called C3 -- will develop 200 "ghost kitchens" by the end of 2021. Ghost kitchens, for those unfamiliar, are kitchens set up to make food for takeout and delivery only. There is no sitdown space. Some of the locations will be at Simon malls. Others will be at Accor hotels, who own 50% of SBE Entertainment. The partnership plans to focus on delivery. While it might seem strange to open a ghost kitchen in a mall, Simon wants to fill its retail footprint with the experiential. Customers who utilize the ghost kitchen's services will tell others. This ultimately increases the foot traffic while filling vacant space. The alternative: its space remains empty. Not a winning recipe. * 10 Dividend Stocks to Buy That Are Off to a Fast Start in 2020 Despite being down 10% over the past two years (not including dividends), I continue to like what Simon has been doing to protect its malls from irrelevance. Long-term, SPG's a winner. RH (RH)Source: Andriy Blokhin / Shutterstock.com Formerly known as Restoration Hardware, RH (NYSE:RH) caught the attention of investors last fall when it was revealed that Warren Buffett purchased 1.2 million shares of the furniture retailer in the third quarter. RH stock jumped by more than 7% on the news. It turns out that Buffett is at it again. On Feb. 18, it was revealed that Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) added more than 500,000 shares of the retailer's stock in the fourth quarter. The company now holds 1.7 million shares, good for a 9% ownership stake. Not bad for a guy who said in 2018 that there were better stocks to own than retailers. I'm guessing he figured out RH gets the experiential trend. Here's an excellent quote from RH CEO Gary Friedman that explains the company's focus:"While most in our industry are closing or downsizing stores, we remain committed to our quest of revolutionizing physical retailing," Gary Friedman, CEO, RH, wrote in a letter to shareholders in 2018. "The road of endless promotions, free shipping, and a shrinking store base is resulting in broken and unsustainable retail models. We prefer the road less traveled by, and like Robert Frost, believe it will make all the difference."If you live in Minneapolis, go to its RH Gallery, a three-level, 60,000-square-foot, experiential extravaganza that includes a rooftop patio. I think you'll understand why Buffett is buying. Sonos (SONO)Source: ClassyPictures / Shutterstock.com Own a vacuum brand? Open a retail store. Own a cast-iron stove manufacturer? Open a retail store. Own a speaker brand? Open a retail store. Everyone, it seems, is going direct. That's what Sonos (NASDAQ:SONO) did in July 2016 in New York City's SoHo neighborhood. The space is meant to recreate the various rooms in your house where you might go to listen to music. If you love music, the Sonos retail store is a must-visit if you're in New York.Why hasn't it opened more stores? Probably because they're darn expensive. Not every company has the deep pockets of Apple (NASDAQ:AAPL). Consider that Sonos made $71 million in its latest quarter on $562 million in sales. Sonos' profit was less than Apple CEO Tim Cook's 2017 bonus. Why am I talking about a store that first opened in 2016? Because it continues to do retail the right way and that's never going to go out of style. "Some people view experiential retail as a cliche, but the Sonos store is innovative retailing in the sense that it has a very defined marketing segment (young adults), clarity in the promotion (gamification), and is located in a trendy part of New York City (Soho). In other words, a successful online strategy translated into offline," stated retail expert Ronny Max in her January blog about experiential and concept stores in NYC. * 7 Earnings Reports to Watch Next Week Solidly profitable and cheap, SONO stock is an excellent buy at the moment. Walmart (WMT)Source: fotomak / Shutterstock.com One of the other 52 locations on Ronny Max's list is Walmart's (NYSE:WMT) Intelligent Retail Lab (IRL) in Levittown, Long Island. Located within one of the retailer's smaller Neighborhood Market locations, it's the retail version of a petri dish, with experimentation being the name of the game. "Each time our customers shop in this Walmart, we learn something new by using state-of-the-art hardware and software technologies, including artificial intelligence (AI). W plan to test a wide range of concepts we think will simplify the shopping experience and improve our stores," states Walmart's IRL website.I've never been a fan of Walmart's stores (WMT stock itself is a buy), but I think it would be interesting to visit this location to experience how the company tackles big-picture problems. Investors owning WMT stock more than a couple of years ought to visit the store -- it's open 18 hours a day, seven days a week -- because it will give you a real understanding of what's involved to make its stores a success. While Walmart is struggling to make its e-commerce business profitable, initiatives like IRL will definitely help it get there faster.Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.At the time of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Delicious Restaurant Stocks to Buy * 10 Dividend Stocks to Buy That Are Off to a Fast Start in 2020 * 7 Tarnished Blue-Chip Stocks to Ditch Now The post 7 Retail Stocks to Buy to Embrace Experiential Approaches appeared first on InvestorPlace.
One of the casualties of Pier 1 Imports Inc.'s bankruptcy will be its Groveport distribution center. In a notice filed with the state, the retailer revealed that it is closing the distribution and fulfillment center at 5235 Westpoint Dr. and will lay off its 75 employees beginning April 10. The affected jobs include dozens of fulfillment center workers and material handlers plus various other support roles.
Pier 1 Imports has become the latest big-box retailer to file for Chapter 11 bankruptcy protection. The company will close a handful of stores in Phoenix and one in Tucson.
Pier 1 has been buffeted in recent months with a plan to close down 450 stores and, at one point, a halt in trading. Now it says it's looking for a buyer as it files for bankruptcy in a venue far from its Fort Worth home.
Stock futures point lower after Apple issues a revenue warning because of the coronavirus outbreak in China; Walmart reports earnings; Franklin Resources reportedly is close to buying rival Legg Mason.
Home decor and furniture retailer Pier 1 Imports Inc on Monday said it had filed for bankruptcy protection and was pursuing a sale, a month after it warned of its ability to continue as a going concern in a tough retail environment. The company is the latest retailer struggling in a market dominated by e-commerce giant Amazon.com Inc and other retail stalwarts like Walmart Inc, and had announced plans last month to close up to 450 stores and cut jobs. Pier 1 said it had received a commitment of about $256 million in debtor-in-possession financing from Bank of America, Wells Fargo National Association, and Pathlight Capital LP.
Of the more than 400 store locations that Pier 1 Imports said last month that it intends to close, at least four of the Milwaukee area's seven locations are on the chopping block.
Take a look at the opinions of e-commerce firm Shopify (NYSE:SHOP) and you'll encounter a growing chorus of dissenting views. Since the beginning of November, Shopify stock has jumped nearly 60%. Just since the beginning of 2020, shares have returned over 18%.Source: Paul McKinnon / Shutterstock.com Understandably, investors who are looking at this opportunity now are tempted but hesitant. Based on the company's most recent earnings report, Shopify stock traded at over 24-times sales. To put this into context, hot names like The Trade Desk (NASDAQ:TTD) and Square (NYSE:SQ) traded at far lower price-sales (P/S) ratios, at 14.6 and 6.2, respectively.Not only that, the current PS ratio for Shopify stock is around 38.6 -- again greatly exceeding the ratios for the other two stocks. Therefore, it's not unreasonable to believe that shares could experience a corrective pothole in the nearer term.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, a pothole is fundamentally what's at stake here. As you know, I don't base my investments on financial metrics for their sake alone. Instead, I look at megatrends, such as demographics and wholesale shifts in consumer behaviors. And, this latter engine is ultimately what's catalyzing Shopify stock.You don't need to look far to realize that brick-and-mortar retailers are undergoing dramatic changes thanks to consumers' fondness of online shopping. Most conspicuously, weaker companies in the space like Pier 1 Imports (NYSE:PIR) and drugstore chain Rite Aid (NYSE:RAD) face difficult roads ahead. Meanwhile, those physical retailers who are making it happen have developed their own online channels. * 7 Utility Stocks to Buy That Offer Juicy Dividends As one of the biggest megatrends, you don't want to step in front of this train. E-commerce is steadily taking a greater share of the total retail pie, and that will only intensify in the future. Shopify Stock Is Positioned for the E-commerce of TomorrowIf you haven't picked up on it already, one of my investment philosophies is to go where the money will be -- not where it is right now. That's one of the reasons why I'm not panicking about the coronavirus. As awful as this time is for the people and the families that are suffering, this crisis will thankfully fade.Unless you're strictly day trading, there's no point in making dramatic changes to your portfolio on a temporary event. Instead, it's an opportunity to build it on great stocks with strong upside narratives. And that's exactly how I feel about Shopify stock.If it corrects, it'd be a perfect opportunity to pick up shares on a discount. I've been a bull on the e-commerce firm for years because it exemplifies my philosophy of riding megatrends.You may not know or care about brands like Allbirds or Kylie Jenner. You may think that social media influencers like Jeffree Star and Shane Dawson have no influence. That's fine, but forgive my bluntness. It doesn't matter what you personally think. These names and others are in fact very influential and they're driving millennials and Generation Z to Shopify's e-commerce platform.It may be instructive to think about e-commerce not as a singular, giant entity -- but rather a progression. In the initial phase of e-commerce, companies like eBay (NASDAQ:EBAY) and Amazon (NASDAQ:AMZN) set up the groundwork. Essentially, they proved that online shopping could work.With that fact established, the second leg of the industry involves integrating lifestyle and fashion trends with direct-to-consumer relationships. This is where the role of social media influencers come in, giving brands "street cred." And, this is also why Shopify has invested heavily in social media partnerships. Undeniable Consumer MomentumAdditionally, the bullish case for Shopify stock doesn't merely involve speculation that younger consumers will push it forward. The hard data backs it up. Click to Enlarge Source: InvestorPlace.com Back in 2017, Shopify only had slightly over 8% of U.S. market share of e-commerce platforms. In 2018, that figure skyrocketed to 23%, and last year, market share increased substantially to 31%.In just a few short years, Shopify went from a minor player on the edge of e-commerce to owning nearly a third of U.S. market share. That's the kind of growth that you only see from large-scale shifts in consumer sentiment. More importantly, it implies that the competition is losing share in this pivotal race.Therefore, I'm not worried about any near-term chop in the share price. As for metrics like P/S ratios? I don't find them particularly useful for Shopify stock, as they miss the forest for the trees.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post The Bull Case for Shopify Stock Is More Relevant Than Ever appeared first on InvestorPlace.
Home furnishing retailer Pier 1 (NYSE:PIR) shocked the world in January when management announced intentions to close about half of the company's store-base, or around 450 stores nationwide.Source: Jonathan Weiss / Shutterstock.com That's a lot of stores. And they represent a huge opportunity for peer home furnishing retailers to win new sales. My numbers indicate that each Pier 1 store, on average, does about $1.5 million in sales per year. Across 450 stores, that's about $675 million in sales. The U.S. home furniture retail market did about $120 billion in sales in 2019. So, the Pier 1 store closings mean that about 0.6% of the U.S. home furniture retail market is now "up for grabs".Which retailers are going to grab the most of these sales? To answer that question, let's turn to data from Placer.ai, the world's leading foot traffic analytics platform.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPlacer.ai recently analyzed daily Pier 1 store cross-shopping patterns across four different states (California, Florida, New York, and Pennsylvania), which basically means that they used smartphone location data to see how many customers visited both Pier 1 and another retail store in the same day.From an investment perspective, the results are meaningful. The retailers which have the most cross-shopping overlap with Pier 1, per Placer.ai data, will likely win the lion's share of the $675 million Pier 1 store closure sales pie. Their revenue and profit trends will improve in 2020 as Pier 1 shutters stores. Those improvements lay the groundwork for their stock prices to move higher, too. * 7 Stocks to Buy for February Contrarians Without further ado, then, let's take a look at six retail stocks to buy as Pier 1 rapidly closes stores over the next several months. Retail Stocks to Buy as Pier 1 Closes Stores: Target (TGT)Placer.ai cross-shopping overlap with Pier 1, average across California and Florida: 10.3%Source: Robert Gregory Griffeth / Shutterstock.com Placer.ai identified Target (NYSE:TGT) as the retailer with the most cross-shopping overlap with Pier 1. In California, Placer.ai found that 9.9% of customers who visited a Pier 1 store, also went to a Target store that same day. In Florida, the daily cross-shopping overlap rate was a whopping 10.6%. Target also had the highest cross-shopping overlap with Pier 1 in New York and Pennsylvania.That's a huge overlap. And it's consistently huge across multiple states. Naturally, the implication is that in areas where stores will close, those overlap customers will simply do their home furniture shopping at Target, since Target sells various furniture pieces.About $675 million in sales are up for grabs. Let's say Target nabs 10% of those, or about $70 million. In it of itself, that won't provide a meaningful lift to Target's revenues, which project at nearly $80 billion this year.But, it's yet another tailwind for a company which is already firing on all cylinders thanks to its omni-channel growth initiatives, and yet another reason why Target's revenues, margins, profits, and stock price will all continue to rise in 2020. Retail Stocks to Buy: TJX (TJX)Placer.ai cross-shopping overlap with Pier 1 (CA & FL average): 8.5%Source: Joe Hendrickson / Shutterstock.com Off-price retail giant TJX (NYSE:TJX) appears well positioned to win big as Pier 1 shutters stores, thanks to the company's off-price home furniture retail chain, HomeGoods.According to Placer.ai, about 9% of Pier 1 in-store visitors in Florida, also visited a HomeGoods store the same day. In California, the cross-shopping overlap rate was about 8%.Such a high overlap rate makes sense. HomeGoods is the discount king in the home furniture retail market, and price is always something consumers are thinking about when buying furniture. Thus, I'd presume that for most consumers looking to buy new furniture, a trip to HomeGoods is in the cards.This speaks to the broader underlying strength of the entire TJX machine. Regardless of various changes across the retail environment, consumers always have been and always will be attracted to low prices. TJX's various stores offer some of the lowest prices across multiple different retail verticals. Consequently, so long as consumers remain attracted to low prices (they always will be), TJX will be supported by healthy and stable demand trends. * 7 Stocks to Buy for February Contrarians Those healthy and stable demand trends will power steady and consistent gains in TJX stock. Walmart (WMT)Placer.ai cross-shopping overlap with Pier 1 (CA & FL average): 7.3%Source: Sundry Photography / Shutterstock.com No surprise here. Placer.ai found that mega-retailer Walmart (NYSE:WMT) had a high cross-shopping overlap with Pier 1. In Florida, just over 8% of Pier 1 store visitors also visited a Walmart store on the same day. In California, that number was just above 6%.This shouldn't be any surprise for two big reasons. First, Walmart sells everything, and this all-in-one convenience makes it a very natural place to stop by if you are out on a shopping run. Second, Walmart stores are everywhere, with about 90% of Americans living within 10 miles of a Walmart store. So, if you're out shopping at a Pier 1 store, chances are fairly high that there's a Walmart close by.As is the case with TJX, Walmart's high cross-shopping overlap with Pier 1 speaks to the underlying strength of the Walmart machine. Walmart is all about minimizing prices and maximizing convenience. That's an enduring value prop. So long as consumers shop, they will care about keeping costs down and doing their shopping in the shortest amount of time possible.By offering everything in one place, having stores everywhere, and featuring the market's lowest prices, Walmart checks off the convenience and price boxes for consumers. So long as they keep doing that, consumers will keep shopping at Walmart. Revenues will keep inching higher. So will profits. And WMT stock. Bed Bath & Beyond (BBBY)Placer.ai cross-shopping overlap with Pier 1 (CA & FL average): Bed Bath & Beyond (3.9%), World Market (5.1%), Total (9%)Source: Jonathan Weiss / Shutterstock.com One of the more interesting finds from Placer.ai was the high cross-shopping overlap that the entire Bed Bath & Beyond (NASDAQ:BBBY) store network has with Pier 1. Specifically, Bed Bath & Beyond stores had a 3.9% average cross-shopping overlap with Pier 1 in California and Florida, while World Market (owned by BBBY) had a 5.1% average cross-shopping overlap.The grand total for Bed Bath & Beyond? About 9%, on average, across California and Florida. That's the second highest reading on this entire list. It also means that, assuming a 9% take rate on the $675 million "up for grabs" Pier 1 sales pie, Bed Bath & Beyond could see a near $70 million sales boost from home furniture sales in 2020.That's meaningful for this company. Sales are projected around $11 billion this year. A $70 million boost to that would equate to a 0.6% sales boost. That is far more meaningful than the sub-0.1% sales lifts at Walmart and Target.Also, this sales lift couldn't come at a more perfect time. There's a new management team at Bed Bath & Beyond, and the company is rapidly trying to redefine itself as a more relevant retailer with more tech-savvy stores. Pier 1 store closures will push more customers into Bed Bath & Beyond stores. Those new customers will see these more tech-savvy stores. They'll be impressed. Some may even start shopping at Bed Bath & Beyond stores more regularly. * 7 Stocks to Buy for February Contrarians The company's revenue and profit trends will start to improve. As they do, BBBY stock will bounce back from its presently depressed levels. Home Depot (HD)Placer.ai cross-shopping overlap with Pier 1 (CA & FL average): 3.6%Source: Cassiohabib / Shutterstock.com There's a steep drop off from the first four retailers on this list, to the last two, in terms of Pier 1 sales impact. But, the overlap is nonetheless meaningful enough to include these last two retailers on a list of retail stocks to buy as Pier 1 closes stores in 2020.First up in the bottom two, we have home improvement mega-retailer Home Depot (NYSE:HD). According to Placer.ai, in Florida and California, about 3.6% of Pier 1 store visitors also visited a Home Depot store on the same day. The implication is that when consumers are buying furniture, they are also often in the process of broader home improvements, for which they need supplies which can be found at Home Depot.From this perspective, it's tough to see how Home Depot actually wins any home furniture retail sales as Pier 1 closes stores. Consumers won't start buying their furniture at Home Depot (they don't even sell furniture).Still, Home Depot stock may be positioned for a strong 2020 thanks to improving housing market conditions. That is, as goes the housing market, so goes the number of consumers who need home improvement goods and services, and so goes Home Depot's sales and profit trends. The housing market is rebounding in a big way, thanks to easing trade tensions, low rates, and improving economic sentiment. The more the housing market rebounds in 2020, the more Home Depot's growth trends will improve.And, the more those growth trends improve, the more support HD stock will have to sustain its current rally. Lowe's (LOW)Placer.ai cross-shopping overlap with Pier 1 (CA & FL average): 3.1%Source: Helen89 / Shutterstock.com Last, and maybe least, on this list of retail stocks to buy as Pier 1 closes stores in 2020 is home improvement retailer Lowe's (NYSE:LOW).Placer.ai found that, on average, about 3.1% of Pier 1 store visitors in California and Florida, also visited a Lowe's store on the same day. That's not terribly high. It's also not all that meaningful, because Lowe's doesn't sell the same stuff that Pier 1 sells, so Pier 1 store closures won't lead to a direct sales boost at Lowe's.Having said that, Lowe's could be due for a strong 2020 for the same reasons that Home Depot is due for a strong 2020, and that is improving housing market conditions.In 2020, you will have a U.S. economy defined by strong labor conditions, low rates, increasing home supply, and low home ownership rates. That's a perfect environment for the housing market. Consequently, new home sales will likely go up again in 2020. So will money spent on improvements for those new homes. That means higher spend at home improvement retailers like Home Depot and Lowe's. * 7 Stocks to Buy for February Contrarians Net net, while Pier 1 store closures won't have a meaningful impact on LOW stock in 2020, there are many other catalysts here which will have a meaningful impact, and should collectively keep LOW stock on a strong uptrend.As of this writing, Luke Lango was long BBBY. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for February Contrarians * 10 of the Top Franchise Stocks to Buy Now * 5 High-Yield Stocks With High Free Cash Flow Yields The post 6 Retail Stocks to Buy On The Back of Pier 1 Shutterings appeared first on InvestorPlace.
The retailer announced the closures earlier this month, but now we know what this means for the SA locations.
Both Bed Bath & Beyond and Pier 1 imports are among the latest retailers to announce store closures.
Retail, which continues to see declines in both jobs and storefronts due to the rise of online shopping and other factors, is poised to have more losses in 2020. Major national retailers closing stores in the area include: Macy’s Inc. (NYSE: M) will close its Seminole Towne Center location in Sanford. American Eagle Outfitters (NYSE: AEO) will close its Seminole Towne Center store.
Pier 1 announced that it would close 450 locations. At least eight stores in the Philadelphia area will be among them.
Bed Bath & Beyond will have a challenging year ahead, said CFRA retail analyst Camilla Yanushevsky.
Retailers closed more than 9,000 stores last year and news that Pier 1 will close 450 this year signals more trouble for traditional retailers this year.