99 Cents Only Stores
99 Cents Only Stores (also branded as The 99 Store, and 99¢ Only Stores[2]) is an American price-point retailer chain based in Commerce, California. It offers "a combination of closeout branded merchandise, general merchandise and fresh foods."[3] The store initially offered all products at 99¢ or less.[4] The base price was raised to 99.99¢ in 2008, and products have been introduced at higher prices. [3] Founded by Dave Gold in 1982, there are stores located in California, Arizona, Nevada, and Texas. The company also operates Bargain Wholesale, which sells wholesale to retailers across the United States and exports to more than 15 countries from showrooms in Los Angeles. It also exhibits at trade shows in Las Vegas and Chicago.
| Type | Private |
|---|---|
| Industry | Discount, variety store |
| Founded | 1982 Los Angeles, California |
| Founder | Dave Gold |
| Headquarters | , |
Number of locations | 394 [1] |
Key people | Jack Sinclair, CEO Jason Kidd, COO Felicia Thornton, CFO |
| Revenue | $2.06 billion (2017) |
| $53 million (2017) | |
| $118 million (2017) | |
| Total assets | $662.87 million (2009) |
| Total equity | $523.85 million (2009) |
| Owner | Ares Management CPP Investment Board |
Number of employees | 17,000 (2017) |
| Website | 99only |
History edit
Early history edit
99 Cents Only Stores dates back to the 1960s when the company’s founder, Dave Gold, inherited a tiny liquor store in downtown Los Angeles and decided to run a test by selling bottles of wine at a fixed price-point of 99 cents. The test was an instant success, and Dave thought that selling everything in the store for 99 cents would be hugely popular.
"Whenever I'd put wine or cheese on sale for $1.02 or 98 cents, it never sold out," Gold said in a 2001 interview with The Los Angeles Times. "When I put a 99 cent sign on anything, it was gone in no time. I realized it was a magic number."[5]
On a “lucky” Friday, August 13, 1982, Dave and Sherry Gold opened the first 99 Cents Only Store in Los Angeles. To celebrate the grand opening, Dave decided to sell television sets for only 99 cents to the first 13 families. More than 300 people showed up to stand in line and wait for the store to open. The huge line caught the media’s attention, and more than 10 TV outlets covered the store’s first day. The success of this first grand opening inspired a tradition, with new stores continuing for years to offer 99-cent deals for televisions and other products.
2000s edit
In November 2003, 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 believed that this will permit better management of commodity price increases.[6]
In September 2007, the company raised its prices by $0.0099 - about 1%, e.g. from 99 cents to 99.99 cents—the first increase in the history of the franchise—to combat "dramatically rising costs and inflation."[7][8] However, the store now carries some items that are over the .9999 price point; such as $1.99 and $2.99
Despite having announced on September 18, 2008, that the company would close all stores in Texas, 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.[7][9]
2010s edit
In October 2011, the company agreed to a $1.6-billion buy-out by private equity firm Ares Management and the CPP Investment Board. [10] The deal was completed on January 13, 2012. New ownership decided to lay off 172-plus employees in October 2013. [11] The Gold family ended their involvement with the company in January 2013.
2020s edit
In September 2023, 99 Cents Only Stores announced that they have sold their Los Angeles County warehouse.[12] In October 2023, Fitch Ratings reported that 99 Cents Only Stores was nearing a potential Chapter 11 bankruptcy filing.[13]
In popular culture edit
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. One advertisement wished Joan Rivers "Happy 99th Facelift"; another congratulated the "Dodgers on Losing 99 Games."[5] 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 at the time of its sale in February 2007, the most expensive photograph ever sold, being auctioned for $3.3 million.[14]
99 Cents Only Stores trucks and vans state that "Our drivers carry 99 cents only".
99 Cents Only Stores allows returns of up to nine items within nine days of purchase and are typically open from 9 a.m. to 9 p.m., although individual stores may open at 8 a.m. or close at 10 p.m.
The store mottos include: "Do the 99", "Low prices are born here, and raised elsewhere", featuring a picture of a baby chick.[15]
A 99 Cents Only store was featured in scenes in the 2002 movie Punch-Drunk Love.[16]
Grand Theft Auto: San Andreas 69 Cent Stores are a parody of 99 Cents Only Stores.
In 2016, late night talk show Jimmy Kimmel Live! aired a sketch parodying the 99 Cents Only Store called The 50 Cent Store featuring American rapper Curtis "50 Cent" Jackson.[17]
References edit
- ^ Khouri, Andrew (January 25, 2013). "99 Cents Only Stores' family management team departs". Los Angeles Times. Retrieved May 17, 2015.
- ^ "Bring Home More! Redeem This Coupon at the 99 Store. | 99 Cents Only Stores". 99only.com. Retrieved September 21, 2021.
- ^ a b Troy, Mike (August 1, 2018). "Why 99 Cents Only isn't a dollar stor". Retail Leader. Retrieved October 3, 2021.
- ^ Chang, Andrea (July 22, 2010). "99 Cents Only Stores sued over price increase". Los Angeles Times. Retrieved November 21, 2010.
- ^ a b Li, Shan (April 26, 2013). "Dave Gold dies at 80; entrepreneur behind 99 Cents Only chain". Los Angeles Times.
- ^ "99 Cents Only Stores(R) Announces a $5.2 Million Loss for the Second Quarter of Fiscal 2008 Ended September 30, 2007". Business Wire (Press release). November 8, 2007. Retrieved May 17, 2015.
- ^ a b Welch, Creighton A. (September 18, 2008). . San Antonio Express-News. Archived from the original on September 20, 2008.
- ^ Jinks, Beth & Burke, Heather (September 8, 2008). . Bloomberg. Archived from the original on June 20, 2015.
- ^ Halkias, Maria (February 4, 2009). . Dallas Morning News. Archived from the original on April 4, 2009.
- ^ Chang, Andrea & Li, Shan (October 12, 2011). "99 Cents Only Stores agrees to .6-billion buyout". Los Angeles Times.
- ^ "99 Cents Only Stores: NYSE:NDN quotes & news - Google Finance". Google Finance. Retrieved May 17, 2015.
- ^ "99 Cents Only Stores Sells Los Angeles County Warehouse". CoStar. September 13, 2023. Retrieved October 3, 2023.
- ^ "11 retailers at risk of bankruptcy in 2023". Retail Dive. October 2, 2023. Retrieved October 3, 2023.
- ^ Schonauer, David (March 7, 2007). . PopPhoto.com. Archived from the original on March 18, 2007. Retrieved August 3, 2017.
- ^ "99 Cents Only Stores Slogan - Slogans for 99 Cents Only Stores - Tagline of 99 Cents Only Stores - Slogan List". www.sloganlist.com.
- ^ Levine, Bettijane (January 4, 2003). "Buy low, live high". Los Angeles Times. Retrieved November 9, 2018.
- ^ "50 Cent Opened Up a 50 Cent Store For All of Your Back to School Needs". E! Online. August 24, 2016. Retrieved April 1, 2022.
External links edit
- Official 99¢ Only Stores website
- Coffey, Brendan (September 30, 2002). . Forbes. Archived from the original on February 7, 2003.
- Market Intelligence Center
- 99 Store
- Brott, Tamar (August 2001). "The Price is Right: Why Wall Street Loves Dave Gold's 99 Cent Only Empire". Los Angeles Magazine. Vol. 46, no. 8. pp. 42, 44, 46, 48, 50, 52, 54. ISSN 1522-9149.