Does a Pier 1-Cost Plus Merger Make Sense?

When we saw that Pier 1 Imports is offering to buy competitor Cost Plus for $81 million, we have to admit that confusion set in.

As much as we like the Cost Plus stores (Where else in the suburbs can you pick up Pinot Noir, Sriracha and a fancy chair under one roof?), the timing of this deal seems a bit off.

Though Pier One, which has been hit hard by the housing crash and competition from discounters, seemed to be turning things around during its latest quarter, a Forbes article points out that analysts and investors are skeptical as to if now is the time for the chain to pursue acquisitions.

Or are we and others not seeing what Pier 1 has to gain from such a deal?


4 Responses to “Does a Pier 1-Cost Plus Merger Make Sense?”

  1. 1 jumped ship June 11, 2008 at 1:26 am

    speaking on from the store level, this is all bad. i worked for three years for pier one imports, and i jumped ship. i saw the iceburg coming, and i saw it hit our ship. that iceburg’s name is alex smith. when he took over, things just started getting increasingly unbearable. numbers we were expected to reach, increased quality issues, and just overall uneasiness throughout the employees.

    when i started at cost plus world market, i immediately knew things were different. i saw opportunties for advancement that were not at pier one imports. this company is going somewhere, things are good. then i heard about this offer, i literally got sick to my stomach. if this goes through, i will have to jump ship again. i can’t work for those same people.

    mark my words, if pier one imports gets cost plus world market into their hands… all the stores will go under, not just pier one.

  2. 2 Nancy H June 11, 2008 at 2:15 pm

    I have to agree with “jumped ship.” A take-over of Cost Plus by Pier One makes no sense financially – and Cost Plus is definately the more enjoyable and pleasant of the two to shop in. Pier One has always had it’s nose up in the air. If anything – this just seems like a desperate act on P1’s part to destroy its competition.

  3. 3 Dan June 11, 2008 at 8:37 pm

    this is some awful news. I have been a GM for World Market for 10 years. I love working for this company and i feel this will not happen. Barry Field the CEO is taking Cost Plus in the right direction, and there has been no communication in our company about this. They let the employees know about reducing the corporate office by 10% I am thinking they will turn the other way to this offer. CPWM shares will be above 5 dollars in 3 months anyhow. How can share holders support this of P 1? Then next year pier one goes bankrupt.

  4. 4 roy June 14, 2008 at 4:32 pm

    This is nuts. We do not need any more of the same in the “sea of sameness”… World market is exactly that-“the only authentic World Market Place” in the USA. Keep World Market Free!

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