| Type | Public (NYSE: NDN) |
|---|---|
| Industry | Discount, variety store |
| Founded | 1982 |
| Founder(s) | David Gold |
| Headquarters | Commerce, California, USA |
| Number of locations | 271 |
| Key people | David Gold Chairman Eric Schiffer CEO & Director |
| Revenue | $1.30 billion (2009) |
| Operating income | $12.91 million (2009) |
| Net income | $8.48 million (2009) |
| Total assets | $662.87 million (2009) |
| Total equity | $$523.85 million (2009) |
| Employees | 11,500 (2009) |
| Website | 99only.com |
99 Cents Only Stores (NYSE: NDN) is a price-point retailer chain based in Commerce, California. The store offers products at $0.9999 or less.[1] 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.
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Mr. 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 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.[2] 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.[3]
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.[4]
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."[5]
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. [6]
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][8]
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