99 Cents Only enters new market

Discount Store News, Jan 4, 1999 by Robert Scally

SAN DIEGO -- The Los Angeles based regional one-price retailer 99 Cents. Only Stores is extending its reach. In recent weeks, it has opened its first stores in San Diego County and is preparing to open at least 13 more stores this year.

The two new San Diego County stores are located in the city of El Cajon on, a working-class community situated about 25 miles east of San Diego.

"It's a perfect market for us," said Eric Schiffer, 99 Cents Only Stores' senior vp of operations and finance.

In all, 99 Cents Only opened 11 new locations last year and relocated two existing stores, bringing its store count in Southern California to 64 units.

99 Cents Only takes a unique approach to one-price, deep-discount retailing. It emphasizes clean stores with bright lighting, offering name brand products and consistent merchandise to ensure that items in each category are available at all times. This allows customers to shop the store on a regular basis instead of treasure hunting as is the case with many other close-out retailers. The chain's stores also have a strong emphasis on food and everyday consumables, such as cleaning supplies and toiletry items.

The company is also digesting its recently completed acquisition of Universal International, which operates 74 Only Deals and Odd's-N-End's multiprice deep discount stores in the upper Midwest, New York and Texas.

For the moment, 99 Cents Only plans no major changes in Universal's store operations other than putting some of the parent company's merchandising techniques to work.

This year's store openings will include the chain's first store in Ventura County, located to the northwest of L.A., additional stores Riverside County to the east of L.A. and at least four more stores in San Diego County 99 Cents Only opened its first Riverside County store earlier in 1998.

"We're going to concentrate on growing in the five-county area around Los Angeles," Schiffer said.