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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.”
Translation, 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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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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