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Author: Fafar Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 438  
Subject: Consumer spending? Horsehockey! Date: 9/22/2006 3:30 PM
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This article from Yahoo says that shares have gone up too high on speculation of a takeover...I'd agree.

http://biz.yahoo.com/rb/060921/retail_pier1imports_stocks.html?.v=1
"We view Pier 1 as too pricey to buy in the hopes of a takeout, particularly with fundamental prospects for the company still so weak," he said in a research note.

Pier 1, long known for its ethnic decorations and wicker furniture, has been struggling due to a slowdown in consumer spending, a cooling housing market and increased competition from specialty retailers and discounters.

Last week, the company posted its sixth consecutive quarterly loss and has seen seven straight months of declines in sales at stores open at least a year.


I strongly disagree as to the reason why it's struggled all this time. Consumer spending...cooling housing??? No! The other retailers took their business because Pier1's designs were NOT what the public wanted.

Increased competition? Yes, Target et all started selling global home merchandise. But it wasn't their prices that enticed the buyers, it was their style first.

If the design/look is what you want, you'll buy it. If it's unique, well done, but a little costly, you'll still buy it...or wait for a sale. If it's not what you want in your house, you leave it at the store. If the store is full of things you don't want, after several visits like that you stop going.

I don't know a single woman that says "Oh, I don't really like it/It doesn't go with the rest of my things, but it's cheap so I'll buy it."

One shopper's opinion...

Fafar
still waiting for $4 and better looking designs
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