California's drought disrupted 99 Cents Only Stores’ ability to continually stock “right-priced” produce, which affected the company’s overall financial results for the second quarter. But despite the challenges, same-store sales in the quarter were positive.
Fueled by strong store growth and increased household penetration, dollar stores have been stepping outside of their comfort zone in pursuit of consumer trips that have historically belonged to retail pharmacy.
Discounter 99 Cents Only Stores said it has agreed to be acquired by a group of investors including its founding family, Ares Management and Canadian Pension Plan Investment Board for $1.6 billion in cash.
99 Cents Only Stores reported that its consolidated net income for the first quarter of fiscal 2012 was $17.7 million, or 25 cents per diluted share, compared with $16.8 million, or 24 cents per diluted share, for the prior year.
Family Dollar reported Monday a comparable-store sales increase of 5.1% for the second quarter ended Feb. 26. Net sales for the quarter increased 8.3% to $2.26 billion, from $2.09 billion last year. According to the retailer, warmer weather earlier in the year, as well as strong performance in its consumables and seasonal categories, helped drive sales.