Throughout our more than 40-year history, Pier 1 Imports has been committed to ensuring the safety of our merchandise. We believe this is essential in the operation of a responsible business and a vital part of earning customer trust, establishing brand loyalty, and maintaining market share while ensuring consumer safety. This report provides a general overview of Pier 1 Imports’ business practices related to merchandise safety.
Pier 1 Imports’ merchandise is sourced from hundreds of vendors located in approximately 50 countries, including the United States. In selecting vendors, we identify reputable companies that are willing and able to provide merchandise that will conform to all applicable legal requirements, as well as our proprietary testing protocols. Each vendor is also responsible for compliance with Pier 1 Imports’ Code of Vendor Conduct.
Pier 1 Imports expects our vendors to supply quality merchandise that is safe. Our merchandise purchase orders explicitly reference product specific testing requirements. Vendors are held responsible for ensuring the merchandise is in compliance with the outlined testing, subject to our verification as described below. If a vendor fails to comply, we have the right to cancel the order and seek compensation for any resulting loss or expense. Failure to take corrective action or repeated violations of testing requirements may ultimately result in the termination of the vendor’s business relationship with Pier 1 Imports.
Pier 1 Imports’ Merchandise Compliance Department, which was established many years ago, has management and oversight responsibility for merchandise safety. The department is in constant communication with our buyers, agents and vendors concerning applicable regulatory and testing requirements. They work directly with third party laboratories in the ongoing development of our proprietary testing protocols, which are designed to address both quality and safety concerns.
Merchandise Compliance Department personnel are involved with a number of product safety related organizations, such as ASTM (American Society of Testing and Materials), ICPHSO (International Consumer Product Health and Safety Organization), NCA (National Candle Association), Society of Glass and Ceramic Decorators and the Toy Industry Association. Involvement with these organizations allows the department to provide guidance to senior management, buyers, agents and vendors concerning new and recent developments in safety standards and consumer concerns pertaining to the merchandise we offer.
Pier 1 Imports has long standing relationships with a number of internationally recognized testing laboratories, such as Bureau Veritas and SGS. We require independent third party testing in order to verify that our merchandise meets or exceeds applicable regulatory requirements and testing protocols prior to the product being sold in our stores. The use of independent labs is in addition to any testing performed or directed by a vendor. Currently, over 70 different testing protocols have been developed and implemented. Examples include testing for lead in paint, compliance with UL standards, and safety and appropriate age grading of toys. From time to time, we perform additional testing based upon an increased risk determination associated with a particular vendor or merchandise category or specific item.
In addition to testing, on-site inspections of merchandise purchased from overseas vendors are conducted by our agents at production or consolidation facilities prior to our acceptance of the product. Only merchandise with an approved inspection report is allowed to ship to our U.S. distribution centers. Merchandise is often re-inspected upon receipt in our distribution centers to ensure that the merchandise distributed to our stores meets all required safety and quality standards.
C-TPAT (Customs Trade Partnership Against Terrorism) is a joint government-business initiative to build cooperative relationships that strengthen U.S. and international supply chain security. C-TPAT requires participants to document and validate their supply chain security procedures. Pier 1 Imports is a C-TPAT, Tier II certified company. Generally, this means that we have undergone a rigorous review to minimize security risks associated with our merchandise as it moves through our supply chain. We strive to ensure that all parties in our supply chain are C-TPAT certified. This includes ocean carriers, overseas consolidators and domestic transportation carriers.
In the event of a merchandise safety issue, the Merchandise Compliance Department conducts a review of relevant information and provides appropriate guidance. If necessary, the department coordinates and works closely with the Consumer Products Safety Commission and Health Canada to conduct a voluntary recall of the affected product. As a result of our diligent oversight and the above testing and inspection controls relating to tens of thousands of merchandise items offered for sale by Pier 1 Imports during the past 15 years, we have experienced only 12 product recalls, all of which were voluntary.
Pier 1 Imports continually refines the above business practices to minimize the safety risks associated with merchandise sourced throughout the world. Our efforts to ensure merchandise safety and Vendor Accountability reflect our values and commitment to consistently meet and exceed customer expectations.