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THE SIGNAGE FOUNDATION |
Germantown, TN Study
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Section 2:
Background And Philosophy Of Pier 1 Imports
Pier 1 Imports is a specialty retailing chain offering merchandise from over 40 countries in the world. With over 500 stores in the United States and Canada, Pier 1 is planning to expand to 1000 stores by the year 2000. The company uses extensive newspaper and magazine advertising to attract new customers. In addition, the company has added a Pier 1 credit card to further increase business. Pier 1 also mails catalogues of decorating and gift ideas to over half a million homes nationwide.
Before Pier 1 Imports locates in a municipality, their marketing department completes a demographic profile to help ensure that they can match their existing customer base. Their base is a predominately college educated household, 36.2% which have total incomes of $50,000 or more. Over 60% of the Pier 1 customers are between 25-44 years old with almost 70% of Pier 1's customers being female.
Pier 1 looks for markets that will offer growth. Most of Pier 1's stores are either anchor tenants or are freestanding stores. An anchor tenant in a shopping center is the tenant that attracts or generates the traffic for the facility. A freestanding store is usually located on its own lot and does not have adjoining tenants. Although the company prefers to purchase the building sites, they are willing to enter into a ground lease arrangement as they have in Germantown, Tennessee. Close to 75% of Pier 1 customers are repeat customers and destination oriented. Because of this, Pier 1 Imports is an ideal addition to a shopping center. Their existence in that location encourages repeat customers for the other neighboring tenants.
The main business philosophy of Pier 1 is that Pier 1 Imports enters a community to become a contributing partner within the community. As a result any change that we may ask to the land use planning rule, we make sure that the request is within the purpose, scope and intent of the rules. We make sure that our requested change(s), or variance, will promote and protect the public health, safety and welfare of the community.
We believe after due consideration, that the city will conclude that not only is the city a participant in the traffic safety and economic consequence of Pier 1 Imports' retailing effort but also that funds generated by the retailing are the most usable of all tax revenues. In many ways, retail generated tax dollars are the most retainable of all municipal income because less is spent on police, schools, and structural support.
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