Question 1

What was 99 Cents Only Stores?

Accepted Answer

99 Cents Only Stores was a discount retail chain that operated primarily in California, Texas, Arizona, and Nevada. The company was known for its unique business model where virtually all products were sold at a fixed price point of 99 cents. It was a prominent fixture in the discount retail market for over 40 years before filing for bankruptcy in April 2024.

Question 2

Who founded 99 Cents Only Stores and when?

Accepted Answer

99 Cents Only Stores was founded in 1982 by Dave Gold in Los Angeles, California. Gold established the company with a revolutionary business model centered around selling everything at a fixed 99-cent price point, making shopping simple and affordable for budget-conscious customers. This bold concept became the foundation for what would grow into a large retail chain.

Question 3

What was the original mission of 99 Cents Only Stores?

Accepted Answer

The original mission was to provide extreme value at a fixed 99-cent price point for all products, making shopping simple and affordable for budget-conscious customers. This straightforward approach eliminated pricing complexity and made it easy for shoppers to know exactly what they would pay, regardless of the item they purchased.

Question 4

What products did 99 Cents Only Stores sell?

Accepted Answer

99 Cents Only Stores was a discount variety retailer that sold a wide range of everyday items including groceries, household goods, personal care products, toys, seasonal items, and general merchandise. The company sourced products from liquidation sales, overstock inventories, and closeouts, allowing them to offer major brand-name products at the fixed 99-cent price point.

Question 5

How did the 99-cent pricing model work?

Accepted Answer

The pricing model was exceptionally simple: virtually everything in the store was priced at 99 cents, with minimal exceptions. This fixed price point required the company to acquire products through liquidation, overstock purchases, and closeouts from other retailers and manufacturers. This sourcing strategy enabled them to offer brand-name products at a price point that would normally be impossible to achieve through traditional retail supply chains.

Question 6

What made 99 Cents Only Stores unique in the discount retail market?

Accepted Answer

The primary competitive advantage was the simplicity and consistency of the 99-cent price point. Unlike other discount retailers that offered varying discounts on different products, 99 Cents Only provided transparency and predictability—customers knew exactly what they would pay before entering the store. This unique positioning attracted price-conscious shoppers and created strong brand loyalty over its 42-year history.

Question 7

How many stores did 99 Cents Only have at its peak?

Accepted Answer

At the time of its bankruptcy filing in April 2024, 99 Cents Only Stores operated 371 retail locations across California, Texas, Arizona, and Nevada. The company employed approximately 18,000 people across these stores. The chain had grown significantly since its 1982 founding, peaking as one of the largest discount retailers in its region.

Question 8

Who typically shopped at 99 Cents Only Stores?

Accepted Answer

The customer base consisted primarily of budget-conscious shoppers and price-sensitive consumers looking for affordable everyday items and household goods. The store was particularly popular in lower-income neighborhoods across California, Texas, Arizona, and Nevada. Customers ranged from families managing tight household budgets to individuals seeking deals on name-brand products and seasonal items.

Question 9

What happened to 99 Cents Only Stores in 2024?

Accepted Answer

99 Cents Only Stores filed for Chapter 11 bankruptcy in April 2024, which resulted in the liquidation of all 371 stores. The bankruptcy led to the closure of all retail locations and the layoff of approximately 18,000 employees. This marked the end of a 42-year retail legacy that had been a fixture in discount retail since 1982.

Question 10

Why did 99 Cents Only Stores go bankrupt?

Accepted Answer

The bankruptcy was primarily caused by inflation making the 99-cent price point unsustainable. As costs for goods, labor, rent, and operations increased significantly, the company could no longer source products and operate profitably at the fixed 99-cent price. Additionally, intensified competition from larger discount retailers like Dollar Tree and Dollar General, which offered more flexible pricing and broader product selections, eroded market share and profitability.

Question 11

What was the company's financial history before bankruptcy?

Accepted Answer

99 Cents Only had gone public in 1996 with an initial public offering that provided growth capital for expansion. In 2011, the company was acquired by private equity firm Ares Management in a leveraged buyout valued at $1.6 billion. By the time of bankruptcy in 2024, the company had accumulated approximately $2 billion in debt, which combined with operational challenges, made recovery impossible.

Question 12

How did 99 Cents Only source its products at such low prices?

Accepted Answer

The company employed a unique sourcing strategy focused on acquiring products through liquidation sales, overstock inventories, and closeouts from other retailers and manufacturers. Rather than buying directly from suppliers like traditional retailers, 99 Cents Only purchased excess or returned inventory that had already been marked down multiple times. This approach allowed them to obtain brand-name products at costs low enough to resell at 99 cents while maintaining profitability.

Question 13

How did 99 Cents Only compare to competitors like Dollar Tree and Dollar General?

Accepted Answer

While all three were discount retailers, 99 Cents Only differentiated itself through its rigid 99-cent price point. Dollar Tree and Dollar General offered more varied pricing (typically dollar amounts), broader product selection, and some grocery items. However, these competitors were larger, better capitalized, and more adaptable to market conditions. When inflation made the fixed price point untenable, 99 Cents Only lacked the flexibility of competitors with variable pricing models.

Question 14

Was 99 Cents Only primarily a grocery store or general retailer?

Accepted Answer

99 Cents Only was primarily a general discount variety retailer rather than a traditional grocery store, though it did carry some grocery and food items. The stores emphasized household goods, personal care products, toys, seasonal merchandise, and general merchandise alongside grocery basics. This diverse product mix helped attract a broad customer base seeking affordable options across multiple shopping categories.

Question 15

What geographic markets did 99 Cents Only serve?

Accepted Answer

99 Cents Only Stores operated primarily in four western states: California, Texas, Arizona, and Nevada. The company was headquartered in Los Angeles, California, where it was founded in 1982. California remained the company's strongest market throughout its history, though expansion into Texas and Arizona represented significant growth milestones for the chain.

99 Cents Only Stores

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Frequently Asked Questions

What was 99 Cents Only Stores?

Who founded 99 Cents Only Stores and when?

What was the original mission of 99 Cents Only Stores?

What products did 99 Cents Only Stores sell?

How did the 99-cent pricing model work?

What made 99 Cents Only Stores unique in the discount retail market?

How many stores did 99 Cents Only have at its peak?

Who typically shopped at 99 Cents Only Stores?

What happened to 99 Cents Only Stores in 2024?

Why did 99 Cents Only Stores go bankrupt?

What was the company's financial history before bankruptcy?

How did 99 Cents Only source its products at such low prices?

How did 99 Cents Only compare to competitors like Dollar Tree and Dollar General?

Was 99 Cents Only primarily a grocery store or general retailer?

What geographic markets did 99 Cents Only serve?

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