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99 Cent Stores Charging More Than a Dollar

September 05, 2008 3:16 PM

ABC News’ Charles Herman reports:  What’s the world coming to?  The 99 Cents Only Store selling items for over a dollar?

That’s the sense we’re getting from the company after it issued a press release saying: “99¢ Only Stores, the oldest single-price point retail chain in the United States, to announce its first change to its price policy since its founding over 25 years ago.”

Nc_99cent_080905_mainTranslation, next Monday, it might cost more than a dollar to shop at 99 Cents Only Stores. 

Am I missing something here? What happened to the “only” part?  Are they going to add a big giant asterisk to the store signs or take down the “only” part?

The LA Times jumped on this story Friday (by the way, the Times costs only 50 cents in Los Angeles) about the deep discount retailer with 277 stores throughout Arizona, Calif.,  Nevada and Texas.

And while recently released sales figures from other retailers indicate that stores selling the basics like food and gas -– Wal-Mart and Costco -– are doing well, that hasn’t been the story of late at 99 Cents Only Stores.

The company reported in August that sales at stores opened for more than a year -– a common retail measurement –- dropped 0.5 percent compared with the same time a year earlier and that the company lost $1.5 million in its first financial quarter.

The company cited rising food costs, a minimum wage increase and higher gasoline prices for the loss in profit.

But the company also pointed to higher “shrinkage” rates for its losses.  That’s retailer talk for theft, like shoplifting by shoppers or employees. 

It was such a factor that the CEO Eric Schiffer said in the quarterly statement, “We have taken action with certain personnel that we determined were involved in unauthorized removal of our inventory, and we are continuing our investigations. We remain committed to reducing shrinkage for fiscal 2009 and improving our operating efficiencies across the board.”

Translation:  It sounds like some employees thought a five-finger discount was better than paying 99 cents.

So if people are committing “unauthorized removal of inventory” now, what are they going to do when the prices rise even more?

Whatever the reason to raise prices, I guess it’s true that a dollar doesn’t go as far as it used to these days.

September 5, 2008 | Permalink | User Comments (37)

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User Comments

I shopped at the 99cent store in Las Vegas for years. I love that store. Since I moved to Colorado I have emailed the corp. and begged them to open one here in Grand Junction, Co. but so far NO RESPONSE. I don't care if they raise the prices to above 99 cents as long as we get a store here.

Posted by: Janie May | Sep 5, 2008 3:49:37 PM

Change the store name from "Only 99 Cents" to "Around 99 Cents" :)

Posted by: Jason | Sep 5, 2008 3:52:50 PM

Once again Bianna, where is the real news?

Posted by: JP | Sep 5, 2008 4:11:13 PM

Does anyone remember the Woolworth five and dime stores? You don't think they just sold things for 5 cents or 10 cends, do you? This is a "not news" item...

Posted by: Richard | Sep 5, 2008 4:14:37 PM

Does anyone think any of those people at the Republican Convention have ever been in a store like that? I once heard a rich woman discussing the 'Big Lots' store in our town. He comment was "I wouldn't be caught dead in a low class place like that". Enough said.

Posted by: mary | Sep 5, 2008 4:21:39 PM

Wow. If I didn't know any better, I would have thought this headline came from The Onion.

Posted by: tony | Sep 5, 2008 4:24:49 PM

Dear Richard and JP,

Thank you for showing how stupid you are to read an article about a subject that you were not interested in and then further adding to your stupidity writes a post about said article. I for one enjoyed the article very much.

Sincerely,

B.

Posted by: B | Sep 5, 2008 4:29:03 PM

To Mary,

Check your facts, the richest people I know are Democrats. In fact, look at the richest senators in the Senate, they're Democrats too. Check before you post.

As far as the 99 Cent stores are concerned, it was only a matter of time.

Posted by: Tiara | Sep 5, 2008 4:31:34 PM

Mary, being a Republican who did attend the RNC I can tell you that I shop at our local Dollar Tree store on a weekly basis. No need to assume that all members of the GOP are rich or even if they are that they don't appreciate the value of a dollar or shop discount stores.

Posted by: Tamara | Sep 5, 2008 4:33:18 PM

Family Dollar has lots of GREAT items for over a dollar and never changed thier name. I'm adding some dollar deals to my Web site...I hope yall stop by for a visit! :) BDavis...sundaycosmetics.com

Posted by: BDavis | Sep 5, 2008 4:39:37 PM

Unbelievable. People are coming in here throwing politics around into even this, and whining when a news outlet covers a store that is violating the very promise in its name. If you have a store that brags in somewhere that fundamental that it charges no more than a dollar, you'd better expect there to be a reaction when you break that promise. And, if you hate the story so much, what made you click the link to read, what made you fill out the form, and what made you post? Guess you didn't hate it that much after all.

Posted by: Jennifer | Sep 5, 2008 4:40:17 PM

Come on I'm a republican and I have shopped in dollar type stores all the time. Great for gift wrapping paper!

Remember - a penny saved is a penny earned...but with inflation guess we now need to say a dollar.....

Posted by: behopki | Sep 5, 2008 5:08:25 PM

I agree with the comment about Family Dollar having a lot of great items over $1.

Posted by: Mickey | Sep 5, 2008 6:42:20 PM

The original price of a night's stay at Motel 6 was just $6.00, and thus established the brand name. But it's been a few years since you could stay there for that price...

Posted by: Kevin | Sep 5, 2008 6:56:03 PM

I love to shop at this store. But you do have to watch the expiration dates on the food products and don't expect many of the products to last very long either. Mostly generic brands and low quality products--but hey a box of envelopes is a box of envelopes. Makes no real difference where I buy them except for price. As long as they don't raise the prices too high I'll still shop there for the odds and ends in life that can sometimes cost 5 to 10 times more somewhere else.

Posted by: my two cents | Sep 5, 2008 9:41:50 PM

well, I remember the Ben Franklin 5 & 10, gas at 23 cents a gal and day old bread 10 loaves for a dollar. Somehow in those simpler days, befor all this high tech stuff, people did live better.

Posted by: seen em' come and go | Sep 5, 2008 11:19:03 PM

More big news.

Posted by: rwsmith29456 | Sep 5, 2008 11:40:59 PM

As the dollar loses strength the price of things go up. Remember the 5 and dime stores. They are a thing of the past and so is 99 cent stores.

Posted by: Friartuck | Sep 5, 2008 11:56:23 PM

If they're going to raise their prices above .99c or $1.00 change the name of the stores to reflect that or they'll be very missleading. I get a lot of craft supply & household items at the dollar store. Most of the things they sell i wouldn't give .50c for let a dollar or more.

Posted by: Dennis | Sep 6, 2008 4:40:41 AM

Are there any of these stores in Alaska?

Some communities have gas for $9 a gallon and heating oil for $10. Maybe you would like to pick up a $23 chicken at your local supermarket?

Posted by: Old Republican | Sep 6, 2008 5:51:24 AM

Jason, you gave me a good chuckle

Posted by: Greg | Sep 6, 2008 8:15:36 AM

Going to have to change the name of the store.I shop at dollar stores all the time.In this economy,you can't afford WalMart most of the time.

Posted by: Symphony of Destruction | Sep 6, 2008 12:22:45 PM

Tiara - YOU check before posting. Typing what you want and claiming it's true is called LYING.

Posted by: Abbanor | Sep 6, 2008 9:40:45 PM

Tiara No YOu check the richest people in congress are Republicans all the rich people I know are republicans not by much the top senate 25, 13 are republicans and 12 are dems so YOU should check before you post in the House the top 7 out of 10 are GOP members and only 7 of the top 25 are democrats !!!!!6 of the first 7 are republicans in the house get your facts straight

Posted by: Dennis Fort Myers Fl | Sep 6, 2008 11:25:42 PM

I'm NOT rich, I AM Republican AND I shop at the Dollar Tree. By the way, one rich snob who won't shop at a discount store and may or may not be Republican does not suddenly speak for ALL Republicans. If you want to generalize, let's talk about angry, vicious democrats and their caustic remarks. . .

Posted by: tledg | Sep 7, 2008 10:01:58 AM

Mary,

Please...you have Google, check your facts! The top 4 richest Senators are Democrats and they are richer by a big margin.

Posted by: Tiara | Sep 7, 2008 10:09:55 AM

I remember toe old Woolworth's,Ben Franklin's and 5 & 10 stores too,they all got bumped out by the economy!Yes they had cheaper prices,but seems I remember we didn't make as much money and somehow our money went a heck of a lot further then today.I knew as minimun wage started going up we would see the Dollar stores phase out...I love these stores,not just for the prices,but they tend to have some unique things in there that high dollar stores don't feel we need or would want.Change the name if they want,don't take our stores!

Posted by: Dakota | Sep 7, 2008 1:48:33 PM

Drop the ONLY then add the words "AND UP!"

Posted by: mere | Sep 7, 2008 5:19:21 PM

Can't you, who are using angry tones just calm down and talk without verbally attacking one another. The 99cents stores are not a political party. It is a Business. Stop blaming one another.

You sound childish when you fight over NOTHING.

Posted by: mere | Sep 7, 2008 5:24:16 PM

Maybe they don't change the name because then they wouldn't get name recognition anymore, ya think? Also, why are we only pay attention to the 99c store, and not the Dollar Store, Dollar Tree or any of a billion other stores who sell things for a dollar (and more)? And if you're just now noticing that they sell things for more than a dollar, you're kinda slow. Even they're not going to sell electronics for only a dollar. And a lot of them sell electronics now (and other higher priced items).

Posted by: what? | Sep 7, 2008 5:35:36 PM

Mary's comment about republicans just demonstrates how ignorant she really is....you have bought into the lie that democratic politicians are poor just like their constiuents and that republican politicians are rich like their supposed constiuents...the reality is, the philsophy of liberal democrats keeps their constiuents poor with a false sense of help and in return keep themselves at the top...if they really believed in their own cause, they would forgo their own plush lifestyles and lived in the same neighborhoods as the people they serve...so that all can be on the same playing field....at least with republicans they don't hide their wealth, their unashamed by it and they preach the philsophy that with hard work and a good work ethic, you can achieve the same.....

Posted by: ann bracer | Sep 7, 2008 11:38:14 PM

I have found that the best way to save money is to have personal strategies instead of relying on store gimmicks. I do things like make my own laundry soap! It's even better than store bought! If you're interested go to www.savemoneytoday.net

Posted by: interactivebs | Sep 8, 2008 12:31:10 AM

Prices must be kept low with productivity high on basic common items such as food, water, beverages and other everyday goods. Because low prices for common items are the most important indicators of a successful economy. When prices are low people feel that they can spend freely because they have plenty to spend. Minting and currency printing costs stay lower because money is found more efficient. These are the proving grounds of finance. Where pennies, nickels, dimes, and quarters begin and what their actual value are really establish where higher priced items are in terms of practical acquisition for citizens. Keeping low prices low is important because they here establish the variable for the definable value ratio of currency to goods and encourage the mentality of optimism for all social classes. Keep basic prices low and higher priced items adjust accordingly. With low prices citizens can discover tangible buying power of their currency without the risk of spending big money. They have won and feel good about it because they have gotten themselves a bargain. Because of reasons including agricultural technology, society has experienced large scale productivity. If prices go any direction, they best go down as productivity goes up; that is the best way to increase profits. You've got to keep the low end low for healthy economics. When prices go up on inexpensive items, it is an overload to the rest of an economic system. It would be like going to exercise and overdoing it. One runs out of steam and it is not healthy. Nobody ends up feeling good about that. Athletes must pace themselves with the proper warmup and so must economies. Keeping prices low on large quantities of many everyday items is good for everybody.

Posted by: Jerry Rosen | Sep 8, 2008 9:25:48 PM

savemoneytoday.net is nothing but an advertisement click generator. There's no content. People go there and who ever owns it makes money off the ad views.

LAME

Posted by: Aggie | Sep 9, 2008 10:07:45 AM

Richard said:
> Does anyone remember the Woolworth five and dime stores? You don't think they just sold things for 5 cents or 10 cends, do you?

The first five and dime stores DID sell items for five and ten cents only. That was in the 1920s and 30s.

Posted by: Arthur | Sep 9, 2008 7:27:23 PM

dont worry i work for the 99 only store. its going to be the same

Posted by: g | Sep 9, 2008 8:24:27 PM

Get your facts strait!

For the moment, the price increase is .99 cents. That is, prices are going from 99 cents to 99.99 cents. That's still less than a dollar, despite what your title says.

So far, what the 99 Cents stores has often been doing is getting by with shrinking product sizes. What used to be 16 oz. for 99 cents is now 7 oz. for 99 cents.

Still, they won't be able to beat inflation forever. Eventually they will start charging greater than $1, but for now, the prices are still below $1.
\

Posted by: BlankVerse | Sep 12, 2008 7:35:22 PM

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