99 Cent Only Stores (NYSE:NDN) is an extreme value retailer with 275 stores in 4 US states selling brand-name items from groceries to housewares, all of which cost only $0.99. In FY 2010, the company generated $1.3 billion in net sales and $60 million in net income.
Unlike other stores in the retail industry, discount retailers like 99 Cents Only typically do not suffer during economic slowdowns because lower-class and price-conscious middle-class consumers gravitate towards discount stores in order to save money. As a result of the recession, in 2010 the company's net sales and net income increased 4.1% and six-times respectively. The company competes for price-conscious shoppers in an intensely competitive and saturated market, which is dominated by big-box retailers like Wal-Mart Stores (WMT) and Target (TGT) as well as comparable companies like Family Dollar Stores (FDO) and Dollar Tree Stores (DLTR).(Read more at Wikinvest )