Recession Leave a Foul Impression on 99 Cents Only
Something turned sour on 99 Cents Only in the second quarter. When the dollar store retailer, one of the recession’s success stories, recently released its fiscal second quarter revenues, comparable store sales came in at just over two percent. Compared generally to retailing, that’s pretty good, but, Wedbush Morgan analysts Joan Storms pointed out, below a consensus forecast of almost four percent. Comps were particularly low in 99 Cents Only’s core California market. Outside of Texas — a state that the company was getting ready to leave until fortunes recently turned around –- comps gained just under one percent. The problem? Food. Throughout the recession edibles have been the key to success and the inexpensive victuals 99 Cents Only provided…
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