EXHIBIT 10.17

                               EXECUTIVE BONUS PLAN

[Date]



301 Commerce Street
Suite 600
Fort Worth, Texas  76102

Dear:

I would like to advise you of the details of Pier 1 Imports' FY ___ Incentive
Plan for [Corporate Vice Presidents - Key Management].  Your challenge, as
key member of the management team, is to contribute toward greater profits,
increased sales and improved operating efficiencies.

We surveyed several comparable retailers when developing this year's plan.  I
am confident our plan's incentive targets and profitability measurements are
competitive with other retailers.  The basic plan design remains the same
with one improvement.  Beginning with the FY ___ plan, the threshold will be
determined by averaging the pretax profit achieved in the last three years. 
This new method for establishing a threshold will provide an objective
approach to determining a starting point each year.

The pretax profit measurement for the FY ___ plan excludes items extraneous
from normal Pier 1 operating income such as Sunbelt, General Host and The
Pier, and unusual or special gains or charges such as losses or reserves for
closing unprofitable stores.

The FY ___ plan threshold is $___________, an average of the pretax profit
achieved in FY ___, FY ___ and FY 9___.  The plan will pay ___% of target
incentives when the FY ___ pretax profit level reaches $___________ or 10%
above this threshold.

Your FY ___ incentive target is based on your job grade and is expressed as a
percentage of base salary.  We have established incentive targets with the
expectation that both superior individual performance and planned corporate
financial results will be achieved.  Your personal annualized incentive
target for FY ___ is _____% of your base salary.  You must be actively
employed by Pier 1 Imports (U.S.), Inc. as of the last day of FY ___ to be
eligible for an incentive payment.  Final individual amounts may be more or
less than the target depending on the actual overall corporate financial
results.  A performance rating of at least "fully competent" is required to
be eligible for the full target percent.

The plan will pay ___% of target incentives when the FY ___ pretax profit
plan, $_________, is met.  This plan allows Vice Presidents to achieve up to
150% [Key Management - 125%] of their target incentive depending on FY ___
pretax profit.  To do so will take a great team effort!  Attached is an
incentive projection that illustrates how the plan works.  As you can see,
higher pretax earnings mean greater incentive awards.

Please sign this letter and return it to Mitch Weatherly, Senior Vice
President of Human Resources, to acknowledge that you have read and
thoroughly understand this plan and the conditions precedent upon your
receipt of any incentive payments.

Sincerely, 


Marvin J. Girouard
President 



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