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99 Cents Only Stores Raise Prices

FAIRFAX DISTRICT, Calif. The store announced the price hike on Monday.

"In response to dramatically rising costs and inflation, [99 Cents Only Stores] are forced to announce its first ever price increase ... Raising its top price from 99 cents to 99.99 cents, which is an increase of almost a whole penny," said 99 Cents Only Stores CEO Eric Schiffer.

It may not seem like a lot, but store officials say the price increase will generate an extra $12 million each year. This will help cover rising fuel and supplier costs.

The news is a big relief for some customers.

"Basically I found out a couple of days ago from a neighbor that the 99 Cents stores will be raising their prices. And I was like, 'Man, I better get down there and stock up.' Because, who knows, it could be a $1.99 store now. But, pleasantly, I'm surprised that they've only raised it .99, so, everything is still under a dollar ... Hallelujah," said Forrest Thurman, customer.

However, some may worry this is a sign that prices could go up even more. The store says if inflation continues to increase, so could their prices.

For one 99 Cents Only Store regular, J.R. Starr, close to an extra penny is too much to pay.

"By them increasing that, because I'm on a fixed income, that's going to put me in a new tax bracket. You know what I'm saying? Because I don't' have that extra - that .9 - to be paying," said Starr.

Officials say customers shouldn't worry. They say the price increase is just one of many strategies the stores will be using to keep costs down. They will be reducing trips to their manufacturers. They also say they will be making popular products more visible in the store, hoping that the extra penny will be the highest their prices will go.

"Inflation is going up. One penny is not going to hurt too much. So, it's still okay. It's still going to be in my budget," said Mabel McDuffie, customer.

Store officials say every item at the store, even if it is priced below 99 cents, will have a .99 added to the cost.

Officials plan on implementing the new price change at all 277 stores nationwide by the end of September.

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99 Cents Only Opens 19th O.C. Store

While 99 Cents Only Stores is mostly concentrated in north Orange County, its most successful local location is in Lake Forest.

That store has by far the highest annual sales out of 18 stores in Orange County. Up until recently, its only other south Orange County store is in San Clemente. That's why last month, the City of Commerce-based chain opened its 19th Orange County store in Foothill Ranch. "We actually do better in upscale markets," CEO Eric Schiffer previously said.

So it may not be a surprise to learn that 99 Cents Only Stores' most successful location companywide is on Wilshire Boulevard, a few miles from Beverly Hills. Out of about 280 stores, that Los Angeles location is the company's top store in terms of annual sales. "Rich people love bargains too," Schiffer said.

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99 Cents Only sells Ibuprofen; reading glasses; socks; red, orange and yellow bell peppers; Dole salad bags; whole white mushrooms; Russet potatoes; lemons, Progresso canned soups, among other things. For the 2011 fiscal third quarter ended Dec. 25, companywide sales at 99¢ Only stores open at least a year fell 0.7 percent. The number of same-store transaction count increased by 0.7 percent.

Its latest quarterly same-store sales slightly dropped "primarily due to a lower average same-store transaction size throughout the quarter compounded by the impact of heavy rain in our major markets in December …" Schiffer said in a statement. "Additionally, an early freeze and adverse weather conditions led to less available produce from our suppliers which we believe negatively impacted our average same-store transaction size."

However, he added that same-store transaction count grew because "many new customers have come to our stores since the recession began in late 2008."

The chain was founded in 1982. In 1984, it opened its first Orange County store in Garden Grove on Harbor Boulevard. Its next Orange County store didn't open until more than a decade later in 1995 in Garden Grove on Westminster Avenue. The last O.C. Store opened more than four years ago in Brea. It once had a location in La Habra, but it closed a couple of years ago. "The location had poor visibility and because of that was always an underperformer for us," Schiffer said. "Our lease was up and the landlord drastically raised the rent."

The chain didn't enter south Orange County until 2003 when it opened its Lake Forest store. Less than two years later, it opened in San Clemente. The Foothill Ranch store spans 20,600 square feet. By comparison, its largest Orange County store is located in Santa Ana at Bristol Street and Warner Avenue and is 32,800 square feet.

Schiffer wants to open seven to eight more stores in Orange County in the next two years. "Although our main focus is south O.C., we do have plans to open one to two more in central O.C. And one to two in north O.C.," he said.

According to statistics provided by Irvine retail analyst Greg Stoffel, south Orange County has 40 percent of the county's population, but 55 percent of its total income. Average household incomes in north Orange County are about $81,000. In South Orange County, they are near $125,000. "It appears that they tend to locate in moderate income areas," Stoffel said. "Therefore, southern O.C. Might be a challenge."

Before the Foothill Ranch store opened at 8 a.M. On a Thursday, about 500 people waited in line in the cold. The first person in line had been there since 8 p.M. On the Tuesday before the opening. The first nine customers got the opportunity to buy a 22-inch Philips flat-screen TV, valued at $230, for 99 cents. The retailer also had other 99-cents deals that day: a 4th Generation, 8GB iPod Nano, scooter and wireless headphones for the iPod Nano.

"Our Foothill Ranch store had one of our best grand opening day sales," Schiffer said. "The same customer that likes to shop at Trader Joe's or Ross Dress for Less loves to shop our stores to save more on name-brand consumable items. I see no good reason why our stores won't do well in south O.C."

Contact the writer: Check out the latest retail news on ocregister.Com/retail and facebook.Com/ocretail.714-796-7083 or htnguyen@ocregister.Com

Shoplifters Open Fire On 99 Cents Only Store Employee And Her Family In NE Harris Co., Deputies Say

Shoplifters open fire on a retail employee and her family at 99 Cents Only Store on Little York near the Eastex Freeway, Harris County deputies say.

HOUSTON, Texas (KTRK) -- A man was shot in the chest while driving with his family in northeast Harris County, according to deputies.

The Harris County Sheriff's Office said deputies are looking into whether the shooting was tied to a shoplifting case at a 99 Cents Only Store.

Earlier on Saturday, a woman was working in the store when there was a disturbance involving shoplifters, according to the sheriff's office.

Later, deputies said the employee and her family were driving on Little York near the Eastex Freeway at about 10 p.M. When shots were fired.

A male relative exited the vehicle at some point and was shot in the chest, according to Sgt. Jonathan Ryan.

Ryan said the shoplifters were the same people who opened fire, but deputies aren't yet sure whether the theft was the motive behind the shooting.

The man was taken to the hospital to undergo surgery, and the shooters haven't been caught, according to deputies.

A child was also in the pickup but wasn't hurt.

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