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99 Cents Only Stores is a price-point retailer chain based in Commerce, California. The store offers products at $0.9999 or less. 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.

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. The Texas distribution center is a former Albertsons facility bought when they chose to exit the Houston market.

Strengths

* Product sourcing
* Supplier diversity
* Simple brand offering
* Benefits from a tough consumer environment

Weaknesses

* Poor in-store execution
* High variability of in-stocks, store experience, and sales productivity
* Not diversified enough - 99 cents proposition leaves little to no room for wiggle

Opportunities

* Real estate improvements
* Global expansion
* Other services (healthcare, financial, etc.)
* Partnerships with larger retailers to offer store-within-a-store departments

Threats

* Inflationary pressure
* Exchange rate fluctuations affect imports
* Intense competition
* Rising labor costs
 
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