99 Cent Store Case Study Essay -- essays research papers

99 Cent Only Business Strategy v. The challengerDavid Gold, founder and CEO says the 99 Cent strategy is to create the shortest itinerary possible between the customer and the sale (Rae-Dupree, 2004). This is important in abstruse discount retail in order to purchase close-out and other special-situation product at prices substantially below wholesale that sell at prices importantly below regular retail (Symplicity, 2005). Over the past two years, the social club has suffered a $17.00/share loss on its stock (from $30 to $13.00) principally due to declining operating margins (Domash, 2004) caused by over-optimism in the Texas market. Competitors were more deeply fix than their research had shown, and reduced earnings forecasts combined with declining operating margins were the sell indicate for many investors in the company. Also, the need to upgrade their IT infrastructure to support blowup in its California base market was the second company downfall. The pursuit is a su mmary of the company strategy1.Focus on note name consumables.2.Broad selection of regularly available merchandise.3.Attractive and well-maintained stores.4. slopped supplier relationships.5.Focus on larger stores and wider demographic of value-conscious customers.6.Welcoming and tensile ...