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David Gold, Retail Innovator
Facts and Events
About David Gold
- David Gold, born in 1932 in Cleveland, Ohio, the son of Russian immigrants, revolutionized the retail industry when he originated the deep-discount retail store 99 Cents Only Storesin 1982. He was the youngest of three children. He grew up working at the general store operated by his Russian-immigrant parents. In 1945, the family pulled up stakes and moved to Los Angeles. Mr. Gold attended Los Angeles High School but dropped out of Los Angeles City College to take over the family liquor store after his father suffered a heart attack. While working at the liquor store he co-owned with his brother-in-law, he reportedly noticed that bottles of wine priced at $.99 sold better than bottles priced just a few pennies more. This observation later created the impetus for Gold to later open his own store one day that offered a full selection of merchandise all priced under one dollar.
 - Gold made his move in August 1982, when he opened his first "99¢ Only Store" in the Los Angeles area. Opening day was an unqualified success, with long lines of eager customers waiting to see what they could purchase for $.99. News cameras appeared as well, arriving to record the event and feed the public's curiosity, which added to the panoply of the grand opening. After his initial success, he expanded his model into other locations throughout Southern California, and after an initial public stock offering (IPO, Ticker Symbol:NDN) in 1996, this created additional capital for rapid expansion into other areas of California and for a strategic acquisition in 1998 [99¢ Only acquired 48 percent of Minnesota-based Universal International, Inc. for $4 million in cash and merchandise, and later in 1998 acquiree the remainder of Universal International].
- 99 Cents Only Stores would later grow to become the leading price-point retailer in the country with revenues well over $1 billion annually with over 11.000 employess. In October 2011, the company agreed to a $1.6 billion dollar buy-out by private equity firm Ares Management and the Canada Pension Plan Investment Board. The deal, valued at about $1.6 billion, was completed on January 13, 2012. The Gold family ended their involvement with the company in January 2013.
- Among his friends, David Gold was known for his philanthropy and generosity. David Gold's impact and contributions on the American retail landscape cannot be understated and will continue to be felt for many years to come.
Sources
- http://en.wikipedia.org/wiki/99_Cents_Only_Stores
- http://www.fundinguniverse.com/company-histories/99-only-stores-history/
- http://www.bostonglobe.com/metro/obituaries/2013/04/27/dave-gold-dies-entrepreneur-behind-cents-only-chain/zcnf3k8cWqVBanbO4UAYXL/story.html
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