99 Cents Only Stores
Encyclopedia
99 Cents Only Stores is a price-point retailer chain based in Commerce, California
. The store offers products at $0.9999 or less. Founded by David Gold in 1982, most of the stores are located in Southern California
, with others in Nevada
, Arizona
and Texas
. The company also operates Bargain Wholesale, which sells wholesale from showrooms in Los Angeles
, Chicago
, and Houston.
. After prompting from a friend, he then created a full store of these bargains. To get publicity, he sold televisions for only 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 a brand new 99 Cents Only Store will sell a high priced item for 99 cents to the first nine customers in line on opening day, and other limited items for the next 90 new opening day customers. 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. The Texas distribution center is a former Albertsons
facility bought when they chose to exit the Houston market.
99 Cents Only Stores advertises that it is open "9 days a week", 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 structure 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.
In September 2008, the company raised its highest price from 99 cents to 99.99 cents; the first increase in the history of the franchise—to combat "dramatically rising costs and inflation."
In October 2011, the company agreed to a $1.6 billion dollar buy-out by private equity firm Ares Management and the Canada Pension Plan Investment Board. The deal is expected to be completed in the first quarter of 2012.
, in February 2009, the company decided that it will close only one-third of its Texas
stores. The company quoted a rise in sales, and plans to keep the stores open, as long as the stores remain profitable.
Commerce, California
Commerce is a city located in southeast Los Angeles County, California, United States. The population was 12,823 at the 2010 census, up from 12,568 at the 2000 census. It is bordered by Vernon on the west, Los Angeles on the northwest, East Los Angeles on the north, Montebello on the east, Downey...
. The store offers products at $0.9999 or less. Founded by David Gold in 1982, most of the stores are located in Southern California
Southern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
, with others in Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
, Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
and Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
. The company also operates Bargain Wholesale, which sells wholesale from showrooms in Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, and Houston.
Background
Mr. Gold first came up with the idea as a means to liquidate slow selling wines at his liquor storeLiquor store
In the United States, Australia and Canada, a liquor store is a type of store that specializes in the sale of alcoholic beverages. In South Africa and Namibia these stores are generally called bottle stores....
. After prompting from a friend, he then created a full store of these bargains. To get publicity, he sold televisions for only 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 a brand new 99 Cents Only Store will sell a high priced item for 99 cents to the first nine customers in line on opening day, and other limited items for the next 90 new opening day customers. Despite its image, the company operates a basic information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
operation with a computer system ordering stockers in the distribution center and point of sale registers tracking purchases at every store. The Texas distribution center is a former Albertsons
Albertsons LLC
Albertsons LLC is a North American grocery company based in Boise, Idaho, with over 240 supermarkets located in Arizona, New Mexico, Colorado, Texas, Louisiana, Arkansas, and Florida under the Albertson's and Super Saver Foods banners...
facility bought when they chose to exit the Houston market.
99 Cents Only Stores advertises that it is open "9 days a week", 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
Andreas Gursky
Andreas Gursky is a German visual artist known for his enormous architecture and landscape color photographs, often employing a high point of view...
's diptych
Diptych
A diptych di "two" + ptychē "fold") is any object with two flat plates attached at a hinge. Devices of this form were quite popular in the ancient world, wax tablets being coated with wax on inner faces, for recording notes and for measuring time and direction.In Late Antiquity, ivory diptychs with...
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 structure 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.
In September 2008, the company raised its highest price from 99 cents to 99.99 cents; the first increase in the history of the franchise—to combat "dramatically rising costs and inflation."
In October 2011, the company agreed to a $1.6 billion dollar buy-out by private equity firm Ares Management and the Canada Pension Plan Investment Board. The deal is expected to be completed in the first quarter of 2012.
Cutbacks
Despite having announced on September 18, 2008, that the company would close all stores in TexasTexas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, in February 2009, the company decided that it will close only one-third of its Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
stores. The company quoted a rise in sales, and plans to keep the stores open, as long as the stores remain profitable.