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Eric Schiffer, CEO of 99 Cents Only, on the success of his franchise and why he is looking for a new location on Rodeo Drive.
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Great well let's -- -- diversity at 99 cents only who joins us explicitly.
From Los Angeles or it's wonderful to have you with us -- you're looking for space on Rodeo Drive I mean we talk.
Constantly about how would the economy is but are are the millionaires they're starting to struggle -- -- -- market potential that up.
Well we have a store that's a couple blocks from Beverly Hills has been there about twenty years at every year gets busier and busier and and in the fact is.
It's our highest sales volume story.
Of over 300 stores and we have a lot of customers that come -- from Beverly Hills quite amazing clamoring.
Well who who love them who loves a great deal better than -- that a rich person as that's how they got rich.
Well they and that's favorites and especially since the recession hit we've had more more demand to open a store in Beverly Hills -- we were thinking.
-- be a perfect location where we can get the locals plus get the -- So we thought Rodeo Drive and you know it's it's great marketing for the company would be our flagship location.
Is great marketing -- -- does it sends the message that your after.
You know by virtue of being on Rodeo Drive -- there are you at 37 -- 42 dollars a square foot as opposed to in downtown LA.
You know it's it's two -- three dollars a square but seniors -- -- apparently -- I mean it's gonna cost you so much to be -- do you have to you change.
What you charge god forbid -- -- -- -- -- the 99 cents or does -- send the right messenger -- your store.
Well we hope we don't have to have a special 99 dollars section we keep our pricing but.
We we believe will be our best volume store and I guess part of the investment in -- you can look at its investment in marketing or advertising.
To get the word out.
That rich people upscale folks love to shop and -- -- the reason why are stored next to Beverly Hills does so well is that we do very well with upscale clientele and I think.
This helps send that message out.
So just be clear -- have -- actually found a retail location aggregate drivers -- search process still under -- and tell me.
If you a little bit about this process and how you're dealing with the -- actors and perhaps your.
Seem to be new neighbors.
Well you know we love to get a deal and 99 Cents Only Stores we put a news release out as you know so we -- hoping we could avoid the middleman the real estate broker.
And go direct with the landlord to save some money we had a representative.
Walking down Rodeo Drive yesterday had the shopping cart to ninety -- and only store shirt looking for a location.
And we it's gonna be challenging to find a location the right -- we'll probably have to get a smaller location.
But we're optimistic but that's where we are in the process in we're gonna work really hard to find a good good deal there.
Very clever -- -- not only are you argue cheap.
It also sounds like you're good at -- good PR -- so I love that.
Tell you bird's eye view and see what's going on in the economy and how people are feelings of course you have -- stores all over.
What is going on out there are things getting better people feeling more confident what -- your customers telling you.
Well our customers are telling us and again this is -- -- but our customers are telling us that.
Things are not getting easier that with the price of gasoline being at all time high.
Especially you know our stores are there's not a lot of public transportation.
-- really makes a dent in people's wallets.
-- -- really got people who are.
Who'd normally don't come to our store to come -- -- for the first time.
Air political hot selling items in your store.
-- -- people who right now -- I haven't.
I'll I'll let you know that was -- hi -- There -- seeing who I think spoiler free I know what he had there he had a -- Doesn't end -- kids in the 99 cents are right now I just are not believe that happened right before you shouldn't maybe it was his competitors.
And somehow cutting my -- -- And -- -- -- on too long but it's a fascinating topic and you hit the nail on the head -- -- PR stunt I now he says Smart Eric thank you for coming time.
