Walmart Vet to Helm 99 Cents Only
99 Cents Only Stores LLC, a deep-discount retailer with nearly 400 stores in California, Texas, Arizona and Nevada, has named Jack Sinclair CEO upon the retirement of Geoffrey Covert. Sinclair, a 35-year retail industry veteran, joined the City of Commerce, Calif.-based company in 2015 as chief merchandising and marketing officer, and worked closely with Covert to boost the company's financial performance and position it for growth.
“99 Cents Only Stores is one of the most iconic and unique brands in retail today,” said Sinclair. “I am privileged to serve with a team that has laid a solid foundation for success and that delivers unparalleled value and a unique customer experience. We look forward to continued growth, welcoming new customers to our existing stores and introducing our stores to new communities. We have ambitious goals, and our growth trajectory is just beginning.”
Sinclair headed the grocery business of Walmart US from 2007 to 2015, having previously spent 14 years at Safeway PLC, in London, in which capacity he oversaw operations, merchandising and marketing. In his first role at 99 Cents Only, Sinclair refocused the merchandise team on its core mission of providing exceptional value with top-name brands, closeouts, fresh produce and seasonal offerings.
“Jack is deeply committed to 99 Cents Only Stores and has been a tremendous advocate for our associates, customers and communities,” noted Covert. “I am confident that we have put the company on a path to success and continued profitable growth.”
Covert is retiring after a 44-year career in the grocery retail sector that includes tenures with some the most iconic brands in the world. During his time at the helm, 99 Cents Only has grown both revenue and adjusted EBITDA, and outpaced the industry through a focus on enhancing its merchandising selection and improving the customer shopping experience. According to the company, this positive operating momentum was instrumental in facilitating the three-year extension of its capital structure revealed in December and positioning it for the next stage of growth.
“Geoff’s contributions to 99 Cents Only Stores have been invaluable, and we are grateful for his leadership,” said David Kaplan, co-founder and global private equity co-head of Los Angeles-based Ares Management LP, which owns the business. “Today, the company is well positioned to extend its recent growth trajectory, thanks to Geoff's stewardship and Jack’s unique understanding of our business model, knowledge of the industry, and proven track record.”
Other Appointments, and Preliminary Results
Along with Sinclair’s appointment, 99 Cents Only made a few more executive moves:
- Jason Kidd has been named president and COO, reporting to Sinclair. Kidd, who has more than 25 years of retail experience, joined the company in 2014 as SVP of store operations. Before joining 99 Cents Only, he was an SVP with Walmart’s Sam's Club division. His resume also includes senior positions in operations, communications, planning, integration and merchandising.
- Norman Axelrod, a board director since 2012, has been named chair of the board, succeeding Andrew Giancamilli, who will continue to serve as a director.
- Felicia Thornton has been named vice chair and will continue in her current role as the company's CFO.
The company also revealed certain preliminary financial results. Preliminary unaudited annual fiscal 2018 revenue is expected to be between $2.26 billion and 2.27 billion on a 53-week basis, with an estimated annual same-store sales uptick of 8 percent to 8.5 percent. Preliminary unaudited fourth-quarter fiscal 2018 same store-sales are expected to grow by 6 percent to 7 percent, representing same-store sales growth of more than 12 percent on a two-year stack basis. The fourth quarter benefited from strong holiday sales performance, with Christmas sell-through of about 88 percent. The retailer has now racked up eight straight quarters of positive same-store sales.
99 Cents Only operates 391 stores in California, Texas, Arizona and Nevada.