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99 Cent Stores Charging More Than a Dollar
September 05, 2008 11:16 AM
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 in Money Beat | Permalink | Share | User Comments (37)
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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 11:49:37 AM
Change the store name from "Only 99 Cents" to "Around 99 Cents" :)
Posted by: Jason | Sep 5, 2008 11:52:50 AM
Once again Bianna, where is the real news?
Posted by: JP | Sep 5, 2008 12:11:13 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 12:14:37 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 12:21:39 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 12:24:49 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 12:29:03 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 12:31:34 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 12:33:18 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 12:39:37 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 12:40:17 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 1:08:25 PM
I agree with the comment about Family Dollar having a lot of great items over $1.
Posted by: Mickey | Sep 5, 2008 2:42:20 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 2:56:03 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 5:41:50 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 7:19:03 PM
More big news.
Posted by: rwsmith29456 | Sep 5, 2008 7:40:59 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 7:56:23 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 12:40:41 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 1:51:24 AM
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