Shoppers cautious as stores liquidate
Pier 1 Imports’ going-out-of-business liquidation sale is underway, and closing sales are likely to begin as early as next week at the 242 J.C. Penney stores that will permanently close in bankruptcy.
How these sales will be handled is different from past liquidations because of the COVID-19 pandemic.
“Safety is top of mind for most consumers today,” said Naveen Jaggi, president of retail advisory services at brokerage firm JLL. “The idea of being in a tight location with lots of people and touching items in a store will likely deter some shoppers, which will affect the speed in which liquidation will occur.”
Usually, at the start of a liquidation sale, shoppers urgently seek to be the first to get the best merchandise, Jaggi said, then the rush tapers as items are picked over.
“That big rush to go into a store where everyone is touching everything likely won’t occur, which will extend the liquidation period,” he said.
Fewer shoppers will be allowed into stores because of coronavirus social distancing guidelines.
Pier 1, which started its liquidation May 22 online and at stores that reopened after being shuttered because of the virus, said it “will limit shopping to 25 customers at a time.”
Originally, the home goods retailer planned to close up to 450 stores. Because
of the impact of COVID-19, it’s closing its remaining 541 U.S. stores.
Pier 1 said it intends for its website, www.pier1.com, to be available through July, and at the start of the liquidation, the discounts are the same in stores and online.
“We are unable to predict exactly how long the closing process will last due to a variety of factors, but anticipate store closing sales to end in 16 weeks,” Pier 1 said in its frequently asked questions. “If you want the best selection, shop as soon as possible.”
J.C. Penney lawyers said they expect to identify the locations that will be permanently shuttered in a court filing June 4.
Tips for liquidation sales
Be prepared: Prices at liquidation sales are not always the lowest you can find.
Compare prices: Do a Google search or use a price comparison website.
Check the product thoroughly: Open the box, look for damage and make sure all parts, accessories, instructions, warranty information and other items are included.
Use a credit card: If you experience any problems, this will give you a way to contest the charge.
Get rid of gift cards: If you have a gift card for Pier 1 or another financially strapped retailer, use the cards as quickly as possible.
Important: Once liquidation begin, all sales are final.
sales