99 Cents Only Stores
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| 99 Cents Only Stores | |
|---|---|
| Type | Public (NYSE: NDN) |
| Founded | 1982 |
| Headquarters | Commerce, California, USA |
| Key people | Eric Schiffer, CEO Jeff Gold, President, COO Robert Kautz, CFO |
| Industry | Discount, Variety Stores |
| Revenue | ▲$1.105 billion USD (2006) |
| Net income | ▲$9.762 million USD (2006) |
| Employees | 10,000 (2007) |
| Website | 99only.com |
99 Cents Only Stores (NYSE: NDN) is a price-point retailer chain in the United States. It mostly sells products with prices of 99 cents. Items cheaper than 99 cents are sold in divisors of 99 cents (i.e., 2 for 99 cents, 6 for 99 cents). David Gold founded the store in 1982. Most of the stores are centered in Southern California, with others in Nevada, Arizona and Texas. According to the company website (as of January 1, 2008) there are 262 "99 Cents Only" stores in the United States. In addition, the company operates Bargain Wholesale, which sells closeouts to retailers from showrooms in Los Angeles, Chicago, and Houston.
Gold first came up with the idea as a means to liquidate slow selling wines at his liquor store. After prompting from a friend, he then created a full store of these bargains. To get publicity, he sold televisions for 99 cents on the first day, then had family members calling TV stations to ask about the commotion caused by the lines. The practice continues today as 99 Cents Only Stores will sell a high priced item (currently an iPod nano) for 99 cents to the first nine customers in line on opening day, and other limited items for the following week. Despite its image, the company operates a basic information technology operation with a computer system ordering stockers in the distribution center and point of sale registers tracking purchases at every store. [1] The Texas distribution center is a former Albertsons facility bought when they chose to exit the Houston market.
Notably, it has advertised as being open "9 days a week" and for its full page ads in the Los Angeles Times often invoking humorous commentary on holidays with products sold for 99 cents. The company also celebrates the 99th birthday of public figures and names 99 year old individuals as honorary spokespersons. Photographer Andreas Gursky's diptych of the inside of the Hollywood, California 99 Cents Only store became the most expensive photograph ever sold in February 2007, auctioned for $3.3 million.
In October 2007, a more flexible pricing strucutre was implemented where items are sold for prices lower than 99 cents (for example, 69 or 49 cents). The management believes that this will permit better management of commodity price increases. [2]
The company is headquartered in the City of Commerce, California.
[edit] References
Coffey, Brendan. "Every penny counts." Forbes, September 30, 2002.
