Stein Mart and Pier One stock has fallen so low NASDAQ has put them on notice that their shares must be at $1 or more for 10 consecutive days or its goodbye Charlie. Stein Mart at one time had quite a few recognizable brands and the prices were competitive, and the jewelry was top of the line in fashion jewelry, but not so anymore. When the stock price falls for 30 days or longer under one dollar, you receive a note from NASDAQ saying you no longer meet the requirements for trading on the stock exchange. They have till January 6, 2020, to bring the stock price up. They also plan to install Amazon hub lockers in over 200 of the stores, hoping this will drive traffic to the stores. Just mention Amazon and here comes the traffic. The Amazon returns in Kohls have driven more traffic in their direction. Whatever works.
Pier One is another one facing the same problems, including a possible liquidation in the very near future. At least Pier One is blaming no one but themselves per this quote, [O]ur analysis confirmed that our wounds were predominantly self-inflicted,” Bachelder said, according to a FactSet transcript. “Decision-making around critical areas of the business was poor, and costs were not managed to match the performance. We also lost focus of our core customer.”
Pier 1 reported losses and a sales decline in the fourth quarter and said that, after shuttering 30 stores in 2018, it will close up to 145 more. Pier 1 had 973 stores at the end of fiscal 2019. I have shopped at Pier One on many occasions and granted a few things were a bit high but overall better quality than most. Real wood furniture, nice accessories, items found only there and then suddenly there are a lot fewer items in the store. I could always go in and find something I liked, but recently not so. Not only fewer items but did not carry the stylish items they were known for, things that were a little out of the ordinary.
So at this time, they face the same dilemma that Stein Mart does. Get the stock prices up or face being thrown off the stock exchange. I know when TJMaxx opened next door to Stein Mart on 1960 this was a death sentence for them TJMaxx has great prices and popular brands, I have no idea where the buyers for Stein Mart buyers go or who decides what brands but apparently its not the brands shoppers like and most of them no one has heard of. So maybe Stein Mart can start there, brands customers are familiar with and willing to purchase.
You have to wonder what takes so long for these stores to figure out what is selling and what isn’t. Talk to your customers and they will tell you. Seems like the brick and mortar has lost touch with what the customer wants and when this happens they go e-commerce or somewhere else.
Courtesy Retail Dive