In the dollar store industry, general merchandises such as apparel, automotive parts, dry goods, hardware, groceries and home furnishings are sold at discounted prices or much lower than the standard retail price. There are no predominating items in dollar stores, meaning everything are sold at the same price. In this kind of industry, it does not include department stores, warehouse clubs and grocery stores.
Businesses operating in the dollar store industry are very vulnerable if the economy is in trouble. Most of the businesses here would close its operation due to huge losses and the inability to earn income. Only a few businesses in this kind of industry have the ability to last for a long time especially the economy nowadays is quite unstable. Those select few that were able to survive any economic trouble are companies that have the right mix of people running it.
An example of this one is the 99 Cents Only Stores. At the height of the troubled economy in 2008, 99 Cents Only Stores were having problems with the high inflation rate and the rising costs. The company did not succumb to the situation and thought of a good solution to the situation. Chief Executive Officer Eric Schiffer thought of a bold idea and that is raising the price of some products. In its entire history, the company was known as a dollar store that offer items at $0.9999 or less which is why increasing the selling price of the items was quite difficult to do. Eric Schiffer still proceeded with the plan and received no backlash from the customers.
Due to Schiffer’s great idea, 99 Cents Only Stores was able to right the ship and survived the fiscal crisis. Through the great knowledge of Schiffer in the world of business, 99 Cents Only Stores did not have to close its over a hundred stores in California, Texas, Arizona, and Nevada.
The 99 Cents Only Stores is extremely lucky to have Eric Schiffer as its CEO and its other executives on board. Its Chairman is David Gold, founder of the company, then Jeff Gold as President and Chief Operating Officer, Robert Kauz as Executive Vice President and Chief Financial Officer, and Howard Gold as EVP for Special Projects. Without them leading the company through that tough economical situation, 99 Cents Only Stores would probably now be just a history or be called a former company in the dollar store industry.
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