99 Cent Only Business Strategy v. The Competition.

David Gold, founder and CEO says the 99 Cent strategy is "to create the shortest path possible between the customer and the sale" (Rae-Dupree, 2004). This is important in deep discount retail in order to purchase close-out and other special-situation merchandise at prices substantially below wholesale that sell at prices significantly below regular retail (Symplicity, 2005). Over the past two years, the company has suffered a $17.00/share loss on its stock (from $30 to $13.00) mainly due to declining operating …

…H. (2004, September 19). Two Easily Detected Red Flags. Winning Investing. Retrieved June 11, 2005, from Winning Investing Web site: http://www.winninginvesting.com/two_easy_red_flags.htm Rae-Dupree, J. (2004, January 1). Case Study: 99 Cents Only Stores' Efficient IT Infrastructure. Ziff Davis CIO Insight. Retrieved June 11, 2005, from Ziff Davis CIO Insight Web site: http://www.cioinsight.com/article2/0,1397,1456000,00.asp Symplicity. (2002). 99 Cents Only Store. In Employer Profiles (10864). Arlington, VA. Retrieved June 11, 2005, from Symplicity Web site: http://guide.symplicity.com/snapshots/10864