-
Over 1,000 Texan jobs will be saved
99¢ Only Stores® (NYSE:NDN) (the “Company”) announced that its Board of
Directors voted to rescind the Company’s September 2008 announced plan
to exit the Texas market and will continue operations in Texas
indefinitely.
The Company’s decision to rescind the plan to exit Texas allows for well
over 1,000 Texans to remain employed at 99¢ Only Stores in Texas and its
Katy, Texas distribution center.
Eric Schiffer, CEO of 99¢ Only Stores, said, “We are very pleased to
announce to our over 999 devoted and hardworking Texas 99ers in Texas
that 99¢ Only Stores will be staying in Texas. In these challenging
economic times, it is wonderful that they can have peace of mind that
they can provide for their families with career growth opportunities and
benefits. Our entire team should continue to be proud that they are also
making a significant impact in the community by providing everyday
essentials, including perishable food items, at an extreme value when
our customers need us the most. Unlike many other deep-discount
retailers, 99¢ Only Stores offers a wide selection of food and grocery
items including produce, deli, milk, eggs, frozen foods, baked goods, as
well as gourmet and organic foods, which accounts for over 50% of our
product offerings.”
The Company opened its first stores in Texas in 2003 and currently
operates 33 stores in Texas, comprised of 18 stores in Houston, 9 stores
in the Dallas-Fort Worth Metroplex, 4 stores in San Antonio and 1 store
in Harlingen and Bryan, Texas. In September 2008, shortly after
hurricane Ike and after years of unprofitable operations in Texas, the
Company decided to close all of its 48 Texas stores and to cease
operations in the state. In February 2009, the Company noted
improvements in store sales and potential beneficial opportunities
resulting from a recessionary economy and announced that instead of
closing all Texas stores, it would close approximately 1/3 of its stores
and that it would suspend exit plans for up to 6 months to re-evaluate
its Texas operations.
Mr. Schiffer continued, “During the first quarter of fiscal 2010, our
Texas same-store sales increased 23.6% versus last year, and we recently
eliminated the costs and losses from 15 stores that were closed in Q4
fiscal 2009 and Q1 fiscal 2010. Our operations team has been very
focused on executing improved merchandising practices, labor saving
methods, and enhanced customer service.
