In a conference call with analysts this week, the CEO of the California-based “99 Cents Only” store chain was asked whether they’d consider breaking their 99-cent barrier to improve their dismal numbers. He responded:
[It is] definitely on the table. That is something we’re looking at . . . in the future for us. We’re looking at doing some experiments. Obviously one way [is that] you can start selling things for $1.05, $1.09, $1.15 and other ways. You could have more of a break between your 99 cents price point and the next price point.”
Of course, breaking their 99-cent promise—the core of their branding—would be risky, not to mention expensive (think of all the signage they’d have to change). But the economy still sucks, the company has been in the red for two quarters, and shareholders are getting restless. You’d better buy all of your off-brand toothpaste now while it’s still cheap(er).
“‘Mostly 99 Cents Only’? Chain rethinks its pricing scheme” [LA Times] (Thanks to Anthony)
(Photo: heyjoewhereyougoinwiththatguninyourhand)
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I stopped shopping at Deals, a clean, well-kept dollar store, when they raised their prices. Some stuff was still a dollar but much of it was between $2 and $5. I can do better at the grocery store or drugstore. It really took away from the treasure hunt aspect when they raised the prices.
As far as Dollar General and Family Dollar, they also have higher prices and their stores are generally dirty, messy and in bad neighborhoods. Even if their merchandise was only a dollar, I wouldn’t shop in those stores.
By me we have stores that say 99c and up. What the hell does that mean?
You go to a 99c store because you want cheap crap.
If a Mercedes Dealership had one item like a keychain for 99c, they could call themselves 99c and up.
@suburbancowboy: And by that logic, even Wal-Mart could call itself “68c and up” since they sell cheap candy at the checkout lines there.
What the hell does orly mean?
@ShadowFalls:
I love Dollar General. I bought some towels there back in 1982, and I still have them. For stuff like cleaning supplies, detergent and paper goods, they can’t be beat.
I wish I had one near me, but I have to drive a ways and they are off the beaten track.
@Cliff_Donner:
Ooh!! I do!
The Dime store had EVERYTHING!!! Ours had 2-cent candy!
@balthisar: I actually like the 5 buck pizza. It’s like a HUGE cheezy bread that you share with a buddy. Goes great especially with beer.
Maybe the .99 cents store can save money by using lead paint on the toys.( Oh..wait)
And so much as that $5 Dollar pizza is concerned, Little Ceasers have been shrinking (as other pizza makers have been doing) the size of their large pizzas to the point that they are the size of a frisbee.
They are doing that in supermarkets as well, because they know there are lines that if they cross demand destruction will happen at a rapid pace.
The dollar store is for suckers. Most of that stuff is just as cheap, if not cheaper at Wal-Mart.
99 cents is a stupid concept, their business model sucks… every year they make less and less profit per sale.
I find a lot of good deals at the 99cent store. I wouldn’t want to have to shop there, but its easy to drop in and just pick up a couple items. I’ve noticed though, that a lot of the items are being ‘adjusted’: cartons of eggs are cut in half so you only get 6 eggs. Six packs of Shasta have been turned into 4-packs. The spray starch I found there was some trial size, only about 3 inches tall. Unfortunately there are always the people who assume that EVERYTHING in there is a deal. People need to use their brains.