99 Cents Only Stores is raising its top price of 99 cents to 99.99 cents, an increase of almost a whole penny. This is the company’s first price increase in 26 years.
The new price will be implemented across the company's 277 stores later this month.
"In response to dramatically rising costs and inflation, 99 Cents Only Stores is forced to raise its price by almost one full penny to 99.99 cents, which is still just below a dollar,” said Eric Schiffer, CEO of 99 Cents Only Stores. "Just as Motel 6 was eventually forced to raise its price above $6, after 26 years we are forced to raise our price by just about 1 cent. “
The deep-discount retailer sells groceries, household supplies, and health and beauty products. But capping prices at 99 cents plus tax has become a burden for the retailer, which has had to adjust the quantity and size of many of its offerings to keep them on store shelves, according to an article in the Los Angeles Times.
For example, when a dozen eggs became too expensive, 99 Cents Only temporarily began offering six-packs instead to keep prices under a dollar. The company also reduced the size of its milk cartons and stopped selling items such as butter, peanut butter, and cooking oil on a regular basis.
Founded in 1982, 99 Cents Only Stores is the nation's oldest single-price retailer. It has stores in California, Texas, Arizona, and Nevada.
