LOS ANGELES — 99 Cents Only Stores here plans to do more experimenting with pricing levels, Eric Schiffer, chief executive officer, told investors here last week.
The chain is testing the sale of gallons of milk at market prices and produce by the pound in its 32 Texas stores and is beginning to expand some of those tests to California, he said.
“The one comment we get most from people in the stores is that they go to the supermarket for gallons of milk because the quarts we sell don't cut it for a big family,” Schiffer explained. “So we put gallons of milk into the Texas stores, and we've had very positive reaction.
“Obviously, we can't sell a gallon of milk for a buck, so our price range depends on the weekly price we pay, and our prices are, if not the best in town, as good as anybody else, and we feel that helps drive business to our stores.”
The chain has begun offering gallons of milk in a few stores in California, “and our gut feel is this is a really good thing,” said Schiffer.
The company is also testing the concept of selling produce by the pound instead of 99 cents per package, Schiffer added.
“We're making upgrades to our point-of-sale systems to allow us to do a lot more of these things with pricing.”
Schiffer made his remarks during a conference call to discuss financial results for the fiscal year and fourth quarter that ended March 27. For the quarter, net income rose 141% to $16.9 million, sales were up 4.3% to $302.1 million and same-store sales increased 2.3%.