Sales Slip as Pier 1 Awaits Ad Shop

DALLAS Limited advertising and weak shopping traffic contributed to a 1.3 percent decline in same-store sales for Pier 1 Imports, which is expected to name a new ad agency next month, company officials said.

Marvin J. Girouard, chairman and chief executive of the Fort Worth, Texas-based retailer, said Thursday that sales of $139 million fell within the expected range.

“As part of our planned merchandising and marketing initiatives announced in June, we began the rollout of ‘value priced’ items in August with lowered price points on 150 basic items and are aggressively conducting a search for a new advertising agency,” Girouard said.

Leading into the Labor Day holiday in September, Girouard anticipates a decline in same-store sales of 4-8 percent in August.

In June, Pier 1 said that it was seeking a new ad agency to replace the Interpublic Group’s Campbell-Ewald of Warren, Mich. Pier 1 spends $60 million annually on advertising, according to Nielsen Monitor-Plus.

The retailer said it would not disclose the list of contenders for the ad account. A company representative said an agency would not be named until Pier 1 moves into its new headquarters building later this month.