Pier 1 Says Refurbishing Paid Off

Pier 1 Imports is linking its strong holiday shopping season to a major shift in its advertising focus, extensive store remodeling at its 700 locations and the addition of better quality merchandise. The chain dropped its emphasis on promotional discounting through newspapers in 1995 and began an image advertising campaign on television. Pier 1 replaced ceiling-high racks and packing crates used to store merchandise with brighter, shorter displays. And it added higher-priced merchandise to its eclectic blend of accessories. Traffic counts have risen steadily and the average sales ticket is up $3 to $38. The company said its 1998 media budget is $47 million, or 4% of sales.