Eric Schiffer – Growing in Popularity amid Economic Challenges
Eric Schiffer is the CEO and Director “99 Cents Only Stores”, a retailer of general consumable merchandise. Prior to joining “99 Cents Only Stores”, Eric Schiffer worked for Oxford Partners between 1987 and 1991, in the position of a venture capitalist. Mr. Schiffer graduated from Duke University and Harvard Business School.
Making history:
Eric Schiffer has been able to steer the company to growth amid economic challenges. The affluent community has come to the realization that the money they have may soon not be in the near future. Furthermore, the performance of the stock-market and economic predictions have resulted in bargain hunting. Saving is becoming more fashionable; as a result the majority of consumers are choosing to do their shopping in “99 Cents Only Stores”.
“99 Cents Only Stores”operates an efficient information technology employed for ordering stockers in distribution centers and point-of sale registers for tracking purchases. The “99 cents” idea was generated by the founder of the company to help liquidate slow-selling wines. Efforts geared towards publicizing the company saw the founder selling television sets for 99 cents. The practice still continues today, with the highest priced item selling at 99 cents. The company’s biggest selling merchandise is food and beverage- which account for 50 percent.
Recently, the company sought to raise its merchandise top price to 99.99 cents, with the goal of keeping the 9’s in the company name and improving its revenue base. While rising inflation and a troubled economy have been bringing new customers to the stores, the company has had to contend with rapidly rising costs of products, labor and transportation. The price increase was the first in 26 years, nevertheless timely. Furthermore, instead of laying-off workers during the recession, the company is seeking to open additional stores.
Growth amid economic challenges:
Eric Schiffer is responsible for the success of close to 300 stores. His experience and insight has been necessary in fueling the company’s growth strategy. In the third quarter ending December 31, 2011 the company reported $403.9 million total sales compared to $365.4 million the previous third quarter which represents a 10.6% increase.
In the same year, the company opened new stores, 6 of them in California, 3 in Texas and 2 in Arizona. “99 Cents Only Stores” also makes sales to exporters, distributors and retailers through the company’s ‘Bargain Wholesale Division’. The prices are nonetheless, below the normal wholesale levels. In the fiscal year 2011, the Bargain Wholesale represented 3.1 percent of the total sales made by the company. “99 Cents Only Stores” low prices are supported by an efficient IT infrastructure.