Pier 1 Imports started as a single store in San Mateo, California, offering low-priced beanbags, love beads, and incense to baby boomers. Today it sells quality home furnishings and decorative accessories
Why is Pier 1 Imports a perfect case study of the wheel-of-retailing hypothesis?
The wheel-of-retailing hypothesis states that new types of retailers find it easier to enter the market by offering goods at lower prices than competitors. After they gain a foothold, new retailers gradually trade up by improving their facilities and by increasing the quality and assortment of merchandise. Pier I Imports did exactly this.
Business
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