We reported last week that the 99 Cents Only Store (NDN) needed a new name. Blame high oil prices, a higher minimum wage, soaring food prices, and just creeping inflation in general.
Now, it looks like it really might get one. NDN is expected to announce Monday that it will be raising its prices on select items above 99 cents for the first time. The eagle-eyed LA Times has even spotted telling changes to their web site:
Last month, President Jeff Gold said the company hadn’t decided whether to change its name if prices were raised. But already, the chain has replaced its former slogan, “Still nothing over 99 cents, ever!” on its website with a new message: “The right store . . . now more than ever!”
Deutsche, meanwhile, is positive on the rumoured new pricing plan:
If NDN were to price above $0.99, we believe this would be beneficial to both sales and margins. Potential offsets would be a loss in unit sales as customers push back on higher prices and vendors
negotiating for some of the increased profit dollars, but based on the reaction to NDN’s other recent price changes, described within, we believe the net result would be positive.
Deutsche reiterates BUY on 99 Cents Only Store (NDN), target raised from $9.50 to $11.
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