The Wall Street Journal offered (subscription required) one of the first bullish pieces I've seen on Pier 1 Imports (NYSE: PIR) in a long time:

Nine months into his first year as chief executive officer, retailing veteran Alex W. Smith has cut costs and slowed the pace of sales declines at the Fort Worth, Texas, company. Adding impulse items such as Halloween merchandise to storefronts, scrapping television ads in favor of spunky and targeted mailings, and implementing other changes have produced what Mr. Smith has called "seedlings of success." ... Couple those positives with recent insider buying and a coming show-and-tell by management, and some fans see a compelling case for the stock to double or triple within a couple of years.

I'll believe it when I see it. Much though I love Pier 1, the store just isn't as unique as it once was. Big box competitors like Target (NYSE: TGT) are offering very, very similar stuff -- for a lot less money. The Pier 1 brand probably still has some value. But buyout rumors have been circling for years as the stock has declined and so far nothing has come of it. And let's face it: You can only close so many stores, and watch your sales plummet as margins decline for so long before your brand starts to lose some of its equity.

Back in June, I wondered whether some kind of partnership with Wal-Mart (NYSE: WMT) could be beneficial. Wal-Mart needs some way to compete with Target for more upscale buyers, and perhaps a less-expensive line of Pier 1 products could help Pier 1 boost its sales -- the downside of course would be further erosion of the brand's equity, but many big-name brands offer off-priced products through the big boxes.

In a sign that the company recognizes the need for change, Wal-Mart (NYSE: WMT) has brought in former Kraft (NYSE: KFT) executive Linda Hefner to try to turnaround its home decor business, which has been sputtering for awhile now. According to Ms. Hefner's biography on the Kraft Foods website, she led "the development of Kraft's corporate business strategy including merger and acquisition activities around the world" and was CEO of Sara Lee's (NYSE: SLE) Underwear, Socks and Latin America Group.

While her track record looks impressive, I have to wonder if this hiring is more of the same that hasn't worked. Rather than bringing in an expert in the home decor business, Wal-Mart has brought in someone with an extensive background in retail but no experience, as far I can tell, in home decor.

Last week, I wondered whether Wal-Mart should try to team up with Pier 1 Imports. While that might not be realistic, the company's solution to its home decor woes probably doesn't involve an executive with experience selling underwear.