May 20, 2013
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.[1]
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.[2] As a result of the recession, in 2010 the company's net sales and net income increased 4.1% and six-times respectively.[1] 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
) - Company Overview
- Business Segments[4]
- Product Categories[5]
- Business Growth
- FY 2010 (ended March 27, 2010)[1]
- Trends and Forces
- Difficulty in Sustaining Recession-Based Growth
- 99 Cents Only Well-Positioned in Recession
- Discounters Experience Difficulty Passing on Cost Increases to Customers
- Inability to Pass on Inflation Risk Harmful in the Long-Run
- Competition
- 99 Cents Only vs. Comparable Dollar Stores
- 99 Cents Only vs. Big-Box Sellers
- References
