It would make sense that a retailer called 99 Cents Only Stores (NDN) would do well during a recession. And, it has. It recently reported earnings for its first quarter fiscal ending June 27. Revenue rose nine percent to $332 million. Same-store sales for the period were up seven percent.
But, what happens to an ultra-discount chain when the recession ends? The CEO of 99 Cent Only Stores says that higher-end shoppers who have been forced into its outlets will keep coming. According toReuters, Chief Executive Eric Schiffer said, "We're seeing a lot of middle to upper income customers come into the store for the first time or expand what they buy in the store. I am confident that when the recession ends, we will be able to retain them." If Schiffer it right, it will be a sea change in American's shopping habits.