99 Cents Only Stores SWOT Analysis

99 Cents is a young company, public owned company that was founded in 1982 by David Gold and it’s headquarter is based in Commerce California U.S.A. The company unique name owes to its discount offers on the products which is claimed to be less that a cent even. The store chains are operating in almost 281 locations within the United States.


• The company is maintaining its originality by opening up the market with first 9 customers buying the products at 9 cents each day.

• The company being limited to United States owns the revenue of almost one and a half billion dollars.

• The total assets of the company accounts for $662.87 million being operated by $8.48 million employees.

• In the previous year 21,300 square feet of the area was totally functional throughout the year giving profits of about $1.36 billion.

• The company has a humorous mission statement that its working nine days a week, often interpreted rightly for its services even on Christmas holidays.

• The main aim of the company is accountability of the high rise costs and inflation.

• All of the simple and routine use products are offered.

• A number of suppliers are associated with the company.

• Specialized tactics are employed for consumer environment that is tough.

• Being a very low income generating units the company is still in pace with informational technology for a simpler kind of ordering the stockers and tracking the daily sales at each store.


• The cutbacks are often interpreted as dramatic statements as the announcement of store closures are often taken back instantly when a little bit profit is generated.

• The execution inside the store is very poor.

• The products offered are not very diverse and only limited, low price items can be purchased.


• New locations are being optimized for the stores keeping in view the type of customers and profitability.

• Global expansion of the store chains especially in the developing countries would really be prominent earning for such type of outlets.

• Services other that routine merchandize like that of healthcare are also on the way to be introduced.

• Partnership plans with the developed stores to cut the rental costs of the buildings as a possibility of taking a retaining place in the bid stores is certain.

• Club 99 is a special program being offered by 99 cents to the dealers that are interested in opening up their own business at a small scale. In this program the notable point is that they are giving a tremendous offer of free shipment to the beginners.


• Inflation pressures on the grocery item especially when the rates are revised twice or thrice in a year, the constant price policy often gets retarded.

• Gradual decrease in the exchange rates affects the retailers that are importing some products.

• The labor cost is very difficult to manage in limited resources of the company.


• Official website. 99only.com. Retrieved online on March 27, 2011.

• Chang, Andrea (2010). “99 Cents Only Stores sued over price increase”. Los Angeles Times.

• 99¢ “Only Stores Announces a $5.2 Million Loss for the Second Quarter of Fiscal 2008 Ended September 30, 2007”. Retrieved online from  http://www.bloomberg.com/apps/news?pid=20601087&sid=a0UtgD74RCms

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