99 Cent Store Case Study Essay -- essays research papers

99 Cent Only Business Strategy v. The CompetitionDavid Gold, founder and chief executive officer says the 99 Cent strategy is to create the shortest path possible betwixt the customer and the sale (Rae-Dupree, 2004). This is important in deep discount sell in order to purchase close-out and other special-situation merchandise at prices substantially below wholesale that sell at prices significantly below constant retail (Symplicity, 2005).      Over the past two years, the company has suffered a $17.00/ take loss on its stock (from $30 to $13.00) mainly due to declining operating(a) margins (Domash, 2004) caused by over-optimism in the Texas market. Competitors were more deeply entrenched than their research had shown, and reduce earnings forecasts combined with declining operating margins were the sell signal for many investors in the company. Also, the need to upgrade their IT infrastructure to support expansion in its calcium base market was the second c ompany downfall. The following is a stocky of the company strategy1.      counseling on brand name consumables.2.      vast selection of regularly available merchandise.3.     Attractive and well-maintained stores.4.     Strong supplier relationships.5.     Focus on larger stores and wider demographic of value-conscious customers.6.     Welcoming and Flexible ...