City of Commerce, Calif. Discounter 99 Cents Only Stores Inc. said Monday it will raise its top price from 99 cents to "99.99" cents, or nearly a dollar. While the jump is almost a whole penny, it still enables the company to stay below $1, thus still supporting its value proposition.
The increase, the company’s first in its 26 years of operation, “is in response to dramatically rising costs and inflation,” said Eric Schiffer, the retailer’s CEO. “This nearly one cent price raise will help 99-Cents Only Stores offset some of the increased costs of doing business, including higher fuel and commodity costs.”
The chain expects the move to increase store traffic and grow its customer base during the economic downturn.
The new price point will be implemented in the chain’s 277 stores by the end of this month.