Strong LV home sales drive Pier 1 growth

Grace Leong

Friday, March 14, 2003 | 10:59 a.m.

Home furnishings and furniture retailer Pier 1 Imports has opened its fifth Las Vegas store -- its biggest worldwide -- at Crossroads Commons shopping center near Summerlin.

Pier 1 has high hopes for the new store since its Las Vegas stores have typically outperformed by 50 percent other stores nationwide.

The Fort Worth, Texas-based company, which began with one novelty-item retail store in San Mateo, Calif., in 1962, said Las Vegas was chosen as the site of its 1,000th store because of its strong performance and because strong in-migration and home sales are expected to fuel retail sales in Las Vegas despite the slowdown in the economy.

Located at the intersection of West Charleston and Rampart Boulevards -- considered by analysts as one of the fastest-growing retail areas in the Valley -- Pier 1's fifth Las Vegas store, a 20,137-square-foot site that's twice the size of a regular Pier 1 store, opened Feb. 23 with 35 employees and had a grand opening Thursday.

Pier 1, which now has between 100 and 150 employees at its five Las Vegas stores, plans to open three more stores and hire another 45 workers by the end of 2004. The four other existing stores are at 1419 W. Sunset Blvd., 3181 N. Rainbow Blvd., 4021 S. Decatur Blvd. and 9887 S. Eastern Ave.

Kevin Marsh, a property manager of Peccole Nevada Corp., which owns Crossroad Commons, said the West Charleston Pier 1 store, located across the street from other big-name home furnishings retailers like Williams-Sonoma and Pottery Barn in Rampart Commons, will be a strong competitor because it can offer high-quality product at reasonable prices.

"The store is near high density, high-income housing in Summerlin, ... near seven to eight golf-course communities within three to four miles of that intersection," he said.

"Despite what's going on nationally and globally, the Las Vegas retail market still appears to be very healthy. Those moving from California to Las Vegas still see the Las Vegas housing market as being affordable. And people buying new homes need to buy new furnishings," he said. "There's a good mix of product ... not a whole lot of overlap of product between Crossroads Commons and Rampart Commons and (nearby) Boca Park."

Pier One is one of three anchors at Crossroads Commons including Claim Jumper restaurant and The Sports Chalet. Other planned anchors include Barnes & Noble, opening May 1, and Whole Foods, a national health food and gourmet grocery, opening June 15. Sharper Image, Nextel Communications and Washington Mutual plan to open at the center in the next 90 days, Marsh said.

Merianne Roth, a Pier 1 spokeswoman, attributes the company's strong performance nationwide to effective advertising and to "cocooning" -- a desire among homeowners to entertain and be entertained at home rather than spend a night on the town -- in the aftermath of the Sept. 11 attacks.

"Over the last few years, we've done well because people have turned to their homes as refuge and spent more on home furnishings," she said. "Las Vegas customers are very interested in their homes and beautifying their surroundings."

Steve Roberts, store manager at the West Charleston location, agreed.

"Unlike the New York market, where space is usually an issue for our customers, in many Las Vegas homes, there are some really big spaces to play with," he said. "Our Las Vegas customers like to decorate their patios because of the good weather. They also like a lot of greenery in their homes, so much of our merchandise is aimed at creating tropical looks."