WEBVTT 1 00:00:00.320 --> 00:00:05.240 Let's meet Mike Simonsik, who is CEO of the ninety ninth Sense Only stores, 2 00:00:05.639 --> 00:00:09.720 and I can only imagine he's pretty pleased with how his Michigan Wolverines are 3 00:00:09.720 --> 00:00:13.439 doing this season. Mike Simonsek, how you doing today? I'm doing great 4 00:00:13.640 --> 00:00:17.199 and it's great to be a Wolverine. Now I have to ask you, 5 00:00:17.600 --> 00:00:22.480 are you from Michigan because I know you went undergraduate and graduate you know, 6 00:00:22.600 --> 00:00:26.600 go blue. So how does University of Michigan figure into your life story? 7 00:00:26.920 --> 00:00:33.000 I grew up in the Detroit so I was a Michigander and lifelong Michigan fan 8 00:00:33.159 --> 00:00:37.159 and proud to be an alum. And I like to joke though I have 9 00:00:37.240 --> 00:00:39.679 two degrees and no football tickets, So I got to work on that. 10 00:00:40.079 --> 00:00:45.240 Anyone who is from Detroit or knows someone from Detroit knows. The operative question 11 00:00:45.359 --> 00:00:48.799 is always what high school did you go to? My mother went to cast 12 00:00:49.159 --> 00:00:53.439 High School, cast Tech wonderful, wonderful. You know. I went to 13 00:00:53.479 --> 00:00:59.119 a school called Detroit Catholic Central, Yes, but near cass both West side 14 00:00:59.520 --> 00:01:04.519 schools and so no cast Well and other schools in my family was from the 15 00:01:04.560 --> 00:01:08.560 West side of Detroit. I remember many summers in Detroit. I think that's 16 00:01:08.599 --> 00:01:12.959 going to lead us into our conversation watching how that city changed, watching how 17 00:01:14.000 --> 00:01:18.959 that state changed, watching how commerce in the Big Three change. What did 18 00:01:19.040 --> 00:01:23.879 growing up in Detroit slash Michigan teach you about business? You know, I 19 00:01:23.879 --> 00:01:27.519 think a few things. I think one it's resiliency. But it also helped 20 00:01:27.599 --> 00:01:30.519 lead me to the ninety nine store. You know what, I grew up 21 00:01:30.560 --> 00:01:34.840 in Detroit. I grew up around people who worked for a living. I 22 00:01:34.920 --> 00:01:40.280 had grandparents that I would say, to be honest, you know, we're 23 00:01:40.719 --> 00:01:44.040 too hard working people. They didn't have a lot of extra dollars, if 24 00:01:44.040 --> 00:01:47.439 you will, to throw around. Quite frankly, I'm part of a first 25 00:01:47.480 --> 00:01:53.280 generation that went to college, so my family was working class folks. I 26 00:01:53.359 --> 00:01:56.799 know what it's like to make a budget stretch, and I know what it's 27 00:01:56.879 --> 00:02:00.079 like for your grandparents or your mom or your dad do want to make a 28 00:02:00.159 --> 00:02:05.280 holiday special, to want to make your life special, and they need to 29 00:02:05.280 --> 00:02:08.319 do it on a very reasonable budget. And that so drove me to the 30 00:02:08.360 --> 00:02:12.280 ninety nine That's what's been a connection for me. Here at the ninety nine 31 00:02:12.280 --> 00:02:20.000 store, we focus on creating opportunities for people of all backgrounds all incomes to 32 00:02:20.039 --> 00:02:23.599 really be able to enjoy a holiday, to be able to put healthy food 33 00:02:23.639 --> 00:02:28.719 on their plates, to be able to get wild kind of fund products at 34 00:02:28.719 --> 00:02:32.879 an enormously affordable, extreme value, great prices. That's what we're here for, 35 00:02:32.960 --> 00:02:38.840 and we're here for the families. California, Texas, Arizona, Nevada. 36 00:02:39.280 --> 00:02:45.479 We're here to help our families be able to enjoy Thanksgiving, Christmas, 37 00:02:45.639 --> 00:02:49.000 but also to make that dollar stretch every day every week. I know, 38 00:02:49.120 --> 00:02:53.479 as someone who grew up in California, I always run into people who have 39 00:02:53.599 --> 00:02:59.840 those first hand, anecdotal personal references stories for ninety nine cents only stores. 40 00:03:00.360 --> 00:03:05.080 And I think depending on where you grow up, you may encounter ninety nine 41 00:03:05.159 --> 00:03:08.319 cent only stores at different times. Do you remember the first time that you 42 00:03:08.439 --> 00:03:13.319 walked into one of the ninety nine cent only stores? Yeah? I think 43 00:03:13.319 --> 00:03:15.759 the thing is it blew me away. I was shocked, first of all, 44 00:03:15.879 --> 00:03:23.080 an amazing amount of fresh product, fresh produce, full service grocery store, 45 00:03:23.719 --> 00:03:28.400 and then on top of that all kinds of general merchandise, holiday or 46 00:03:28.439 --> 00:03:32.000 seasonal products, all kinds of party products. I mean, I was amazed 47 00:03:32.439 --> 00:03:36.680 at how much you still can get for ninety nine cents, and then how 48 00:03:36.680 --> 00:03:40.639 many other great deals are still available? So what blew me away is how 49 00:03:40.759 --> 00:03:46.879 much the ninety nine can offer people from a fresh strawberries to ornaments for their 50 00:03:46.960 --> 00:03:51.159 Christmas tree, all at ninety nine cents or less many days, and I 51 00:03:51.199 --> 00:03:53.879 will say this, we have a lot of great products at multiple price points, 52 00:03:53.919 --> 00:03:58.520 but there's great value in what we do. You touch upon something I 53 00:03:58.520 --> 00:04:00.360 think is very important to high so I want to go back and get it 54 00:04:00.439 --> 00:04:05.000 ninety nine cents only stores from where I sit has a very specific challenge given 55 00:04:05.000 --> 00:04:08.840 the very name of the business. You talked about how there are a lot 56 00:04:08.919 --> 00:04:12.520 of great deals and great products which are available for ninety nine cents. But 57 00:04:12.599 --> 00:04:15.680 let's be honest, there are economic forces like inflation, there are industry and 58 00:04:15.839 --> 00:04:21.399 competition forces that you contend with. How do you go about evolving this business 59 00:04:21.680 --> 00:04:27.800 given that changing landscape which you can't control. Yeah, first, we're going 60 00:04:27.879 --> 00:04:31.399 to continue to offer literally hundreds and hundreds of products at ninety nine cents or 61 00:04:31.480 --> 00:04:38.000 less. So we continue to bring a tremendous amount and tremendous number products at 62 00:04:38.040 --> 00:04:41.639 the ninety nine cent price point. However, the ninety nine store is really 63 00:04:41.680 --> 00:04:46.319 going to stand and does stand for normous value on things that are essential to 64 00:04:46.360 --> 00:04:50.800 your life, whether that's fresh produce, grocery items, whether it's scotch tape 65 00:04:50.920 --> 00:04:59.000 or duct tape, whether it's balloons for a party or decorations for a party, 66 00:05:00.079 --> 00:05:02.920 you will deliver enormous value. Sometimes that have value'll be at a dollar 67 00:05:03.000 --> 00:05:06.879 ninety nine, sometimes have values at two ninety nine. Eighty percent of our 68 00:05:06.920 --> 00:05:12.439 items are at four ninety nine or less, and we deliver extreme value or 69 00:05:12.439 --> 00:05:16.439 great value on items that people truly need and want and use every day. 70 00:05:17.040 --> 00:05:21.560 Something that you said which really speaks to me, the ninety nine sense only 71 00:05:21.720 --> 00:05:28.040 stores. They offer the full grocery experience. And when you're talking about sometimes 72 00:05:28.120 --> 00:05:32.199 economically disadvantaged neighborhoods, there is a dearth of grocery stores. There's a dearth 73 00:05:32.240 --> 00:05:38.160 of meaningful food products. How does that figure into your overall strategy as far 74 00:05:38.199 --> 00:05:42.800 as the location and placement in cities. Yeah, we want to go and 75 00:05:42.839 --> 00:05:46.879 be in parts of the cities where people need us, where they're looking and 76 00:05:46.000 --> 00:05:50.399 need to stretch their dollars, where there's often food deserts and non opportunity, 77 00:05:50.480 --> 00:05:55.360 and we bring to the communities we serve twenty five percent of our business. 78 00:05:55.360 --> 00:05:59.319 Think about this where two billion dollar business, five hundred million dollar business and 79 00:05:59.399 --> 00:06:05.519 fresh product everything from strawberries and blueberries to potatoes and onions and bagged avocados for 80 00:06:05.600 --> 00:06:12.319 ninety nine cents. We all full service deli. My breakfasts are all from 81 00:06:12.319 --> 00:06:15.800 the ninety nine store. I use yogurt, I use fresh fruits. We 82 00:06:15.879 --> 00:06:21.360 often have granola grains, name brands, all of it. It allows people 83 00:06:21.399 --> 00:06:28.399 to have an amazing opportunity to eat healthy, wholesome at enormous value, and 84 00:06:28.439 --> 00:06:32.519 our pricing is outstanding and you can then fill it in with more grocery items 85 00:06:33.000 --> 00:06:38.360 and really find those essential items to make your life better. I know you 86 00:06:38.399 --> 00:06:42.240 have not been at the Helm for a long amount of time, and sometimes 87 00:06:42.240 --> 00:06:46.040 you may not know what the future may hold. But if you were to 88 00:06:46.120 --> 00:06:49.800 have your way and there aren't economic forces which may fight against you, what 89 00:06:49.920 --> 00:06:55.480 type of growth or changes do you see in the next five ten years. 90 00:06:56.079 --> 00:07:00.680 We're going to be the leader in America at value and val We will differentiate 91 00:07:00.720 --> 00:07:06.120 ourselves and that no one will bring more value across the spectrum of fresh and 92 00:07:06.160 --> 00:07:14.720 grocery products and amazing curiated seasonal offerings like our Halloween product was amazing day of 93 00:07:14.759 --> 00:07:17.959 the debt. When you go on our store today for Christmas, there are 94 00:07:18.000 --> 00:07:24.000 literally thousands of items at ninety nine cents or a dollar ninety nine or less 95 00:07:24.399 --> 00:07:29.120 to decorate a Christmas tree, decorate your house, provide gifts. So we 96 00:07:29.160 --> 00:07:34.600 will be the leader in bringing value across fresh product as well as general merchandise 97 00:07:35.120 --> 00:07:41.079 and seasons and party. We will be your destination. What people will think 98 00:07:41.079 --> 00:07:44.519 of the ninety nine, They'll say, I go there every week for my 99 00:07:44.600 --> 00:07:47.160 fresh product and my grocery, and then when the big seasons come along or 100 00:07:47.240 --> 00:07:51.759 big occasions, whether it's a graduation party, whether it's Halloween, whether it's 101 00:07:51.839 --> 00:07:56.759 Christmas, I go to the ninety nine. It's birthday parties. You go 102 00:07:56.800 --> 00:08:00.279 to the ninety nine because it's the perfect place to stock up, be able 103 00:08:00.279 --> 00:08:05.000 to deliver an amazing party for your friends or family at an enormous value. 104 00:08:05.160 --> 00:08:09.600 One of the things I mentioned were the competition forces things that may go on 105 00:08:09.680 --> 00:08:13.720 in your industry where there are other businesses within your space. We're fighting for 106 00:08:13.839 --> 00:08:18.000 seemingly the same customers. But there's something else. You listed off the states 107 00:08:18.000 --> 00:08:22.319 in which you could find the ninety nine cent only stores, including California. 108 00:08:22.480 --> 00:08:26.639 There's also a labor discussion where we have minimum wages which are rising in various 109 00:08:26.680 --> 00:08:31.879 states, and that presents a different obstacle or challenge depending on which state you 110 00:08:31.919 --> 00:08:35.360 may be. You know, California may be fifteen to eighteen dollars an hour, 111 00:08:35.399 --> 00:08:37.879 but if you go to Alabama, it may be seven or eight dollars 112 00:08:37.919 --> 00:08:41.919 an hour. Does that figure into how you want to grow and branch out 113 00:08:41.919 --> 00:08:46.320 this business? You know, we're a California based company. We love doing 114 00:08:46.360 --> 00:08:52.039 business in California, and you know what, we want our associates to do 115 00:08:52.080 --> 00:08:56.799 well too. So we're going to be and we want to expand in California, 116 00:08:58.639 --> 00:09:01.240 and we will most likely expand in other states, but we love being 117 00:09:01.240 --> 00:09:05.120 in California and we want that's best for our associates. We want what it's 118 00:09:05.159 --> 00:09:11.559 best for our customers. So we embrace being in California. We embrace the 119 00:09:11.720 --> 00:09:16.399 wages and pay scales of California because we want our associates to do well. 120 00:09:18.000 --> 00:09:20.399 Our associates are also our customers and we want them to do well. So 121 00:09:20.799 --> 00:09:26.840 for us, it's all about focusing on our associates, our customers and creating 122 00:09:26.840 --> 00:09:33.360 that destination where people can get essential products and great value on stuff they buy. 123 00:09:33.360 --> 00:09:35.600 Every day, we'll get you out of bed in the morning. Customers 124 00:09:35.639 --> 00:09:39.440 and the people I work with and our associates. For me, it's personal. 125 00:09:39.679 --> 00:09:43.559 I really feel like if you go back and look at my background, 126 00:09:45.120 --> 00:09:50.279 you'll find out somewhat about thirty years ago, I was working for a nonprofit 127 00:09:50.399 --> 00:09:54.200 organization to try called Focus Hope. It was a group that focused on how 128 00:09:54.240 --> 00:09:58.399 we bring people of different races together, how we tackle poverty, how we 129 00:09:58.440 --> 00:10:03.360 make a different in people's lives, and that has been a motivation of my 130 00:10:03.639 --> 00:10:07.840 entire career. Yes, we want to do well in business, but we 131 00:10:07.879 --> 00:10:11.320 really want to do well for people. And when we come to the ninety 132 00:10:11.440 --> 00:10:15.759 nine, we're helping the customers who need and want to help the most. 133 00:10:16.159 --> 00:10:18.559 And we have good, hard working associates. It's amazing to go in our 134 00:10:18.600 --> 00:10:22.200 stores and meet people who have been working in our stores ten twenty years, 135 00:10:22.879 --> 00:10:28.000 and we have a great team here in our corporate office. They care and 136 00:10:28.039 --> 00:10:31.399 again they care about our customers. They care about each other. So it 137 00:10:31.399 --> 00:10:35.200 gets me out of the bed is simply this, let's take care of our 138 00:10:35.200 --> 00:10:37.519 customers. They need us. They want to be able to make their family 139 00:10:37.600 --> 00:10:41.799 events special, they want to be able to eat healthy, they want to 140 00:10:41.799 --> 00:10:45.159 be able to stretch that dollar. And we have associates who care about them, 141 00:10:45.279 --> 00:10:48.639 and we have associates here in corporated in stores, and if we all 142 00:10:48.679 --> 00:10:50.480 care about each other, we can make this better. Before we started this 143 00:10:50.559 --> 00:10:56.639 conversation in Ernest, you remarked that previously you had gone to a football game, 144 00:10:56.679 --> 00:11:01.279 and I assumed it had to do with University of Michigan Wolverines. And 145 00:11:01.360 --> 00:11:05.720 I think the most successful people have that balance where they may work very hard, 146 00:11:05.720 --> 00:11:11.399 but there's also a non work aspect to their life outside of your alma 147 00:11:11.480 --> 00:11:15.200 mater or maybe going to football games. What do you compliment your life with 148 00:11:15.759 --> 00:11:20.000 family. I spent this weekend with my son, my wife, my two 149 00:11:20.080 --> 00:11:26.480 sons, mom, dad, brother. Family is everything. Fortunately, when 150 00:11:26.480 --> 00:11:30.799 I chose to move to California, my brother in law and his family were 151 00:11:30.840 --> 00:11:33.480 here. I moved two blocks for them, so I get to see my 152 00:11:35.000 --> 00:11:37.840 niece who's a senior in high school, got to really get closer to my 153 00:11:37.919 --> 00:11:45.399 nephew who's a senior at San Diego State. Everything's about family and of course 154 00:11:45.679 --> 00:11:50.120 friends, so those are the things I enjoy the most is time with family. 155 00:11:50.639 --> 00:11:54.360 Do you miss those Detroit winters because I know what they're like. I 156 00:11:54.440 --> 00:11:58.279 mean, they are no joke. And as I get older, I have 157 00:11:58.360 --> 00:12:01.440 no desire to visit Detroit in the winter anymore. How about you? You 158 00:12:01.480 --> 00:12:05.039 know, I'll tell you. When Michigan was playing Michigan State a couple of 159 00:12:05.039 --> 00:12:09.639 weeks ago as a night game, I was sitting outside here with the sun 160 00:12:09.799 --> 00:12:16.720 setting at four thirty and watching everybody bundled up and East Lansing, and I 161 00:12:16.759 --> 00:12:20.399 thought to myself, I think I'm in a good spot. I'm really enjoying 162 00:12:20.039 --> 00:12:26.679 all elements of California. What is your metric? What is your yardstick for 163 00:12:26.240 --> 00:12:33.120 being on pace to either ensure that ninety nine cent only stores continues to be 164 00:12:33.960 --> 00:12:37.759 or becomes what you want it to be. What is your metric or yardstick 165 00:12:37.360 --> 00:12:41.639 serve more customers? I know we're a good business when we keep growing the 166 00:12:41.679 --> 00:12:46.240 number of customers that shop us. So it's all about being there, being 167 00:12:46.320 --> 00:12:48.360 that essential retailer for customers, and we want to grow in the number of 168 00:12:48.399 --> 00:12:54.639 customers who shop the ninety nine How often do you find yourself going into individual 169 00:12:54.960 --> 00:13:01.240 locations in different states, because I know uniformity of a product and presentation is 170 00:13:01.440 --> 00:13:05.440 very important for most businesses, especially businesses which are in multiple states. How 171 00:13:05.480 --> 00:13:09.799 often are you in stores? One, I'm in stores every week, often 172 00:13:11.159 --> 00:13:13.440 a couple times a week. The other thing we've done, too, is 173 00:13:13.480 --> 00:13:20.759 we've created a virtual review process, so literally between physically being in stores every 174 00:13:20.759 --> 00:13:26.039 week, I'm also virtually visiting stores almost daily. But there's a high frequency 175 00:13:26.360 --> 00:13:33.879 of visits, so in stores every week in person and virtually. And the 176 00:13:33.039 --> 00:13:37.159 nice thing what we've done is we do multiple elements now where we touch all 177 00:13:37.200 --> 00:13:41.720 three hundred and seventy seven stores with simultaneous virtual reviews to make sure we got 178 00:13:41.759 --> 00:13:46.440 our products set right, our floor set right, every store checks in. 179 00:13:46.120 --> 00:13:50.080 And now we're also you know, leveraging technology. We have group chats, 180 00:13:50.399 --> 00:13:56.039 all store group chats going all weekend, people sharing their highlights. We have 181 00:13:56.519 --> 00:14:01.159 an internal phrase we use like let's make some noise in our store in all 182 00:14:01.200 --> 00:14:05.080 three hundred and seventy seven stores are engaged. I wonder there's probably an idea 183 00:14:05.240 --> 00:14:11.639 of what the job encompasses. Before you get in and get your elbows greasy 184 00:14:11.759 --> 00:14:15.279 and dirty, and you get your knees dirty, and then there's the reality. 185 00:14:15.360 --> 00:14:20.720 What was the biggest either surprise, pleasant or otherwise from when you accepted 186 00:14:20.759 --> 00:14:26.200 the position to when you got moving. I think the biggest, if you 187 00:14:26.240 --> 00:14:35.159 will surprise or the biggest honestly change from when I started today is the customer 188 00:14:35.240 --> 00:14:39.679 became more personal for me. One of the things we did as leaders is 189 00:14:39.679 --> 00:14:43.600 we all went and worked in stores. I went and it was a cashier 190 00:14:43.679 --> 00:14:48.240 for a day in our stores, and I got to see our customers interact 191 00:14:48.279 --> 00:14:50.720 with them, and at a much deeper level. I actually got to spend 192 00:14:50.759 --> 00:14:52.639 a lot of time on our associates, and it was amazing to me, 193 00:14:52.679 --> 00:14:58.559 you know, the number of our cashiers who actually knew our customers. I 194 00:14:58.720 --> 00:15:05.320 just it became more personal that who our customer is in the important role that 195 00:15:05.440 --> 00:15:09.360 ninety nine can play in making our customers' lives better. That really is the 196 00:15:09.759 --> 00:15:13.159 biggest takeaway. Let me leave you with this question. I know that there 197 00:15:13.240 --> 00:15:18.840 is someone who is listening right now who either has the same passion as you 198 00:15:18.919 --> 00:15:22.519 do, maybe at a different class or station in life than you, but 199 00:15:22.639 --> 00:15:26.519 wants to be where you all, wants to change the world in a retail 200 00:15:26.600 --> 00:15:30.759 sense, or wants to be successful maybe in some other industry. What type 201 00:15:30.759 --> 00:15:35.000 of advice would you give for someone who may be just coming out of college 202 00:15:35.240 --> 00:15:37.799 and can't necessarily see how to get where you are, and you want to 203 00:15:37.799 --> 00:15:43.360 help him or her get there. Yeah, work hard, care, want 204 00:15:43.360 --> 00:15:48.840 to be good, want to make an impact. You need to work hard. 205 00:15:48.320 --> 00:15:52.639 Life is not easy. You've got to care. But what it care 206 00:15:52.720 --> 00:15:56.200 means it won't always go your way. It won't always you won't always get 207 00:15:56.200 --> 00:16:00.480 there on the first try. But you care to be good to make an 208 00:16:00.519 --> 00:16:03.039 impact. So tell any young person or any person at any point in your 209 00:16:03.039 --> 00:16:08.879 career having willingness to work, really care about what you're doing, and keep 210 00:16:08.919 --> 00:16:12.279 grinding away until you get there. It can happen, and it will happen. 211 00:16:12.879 --> 00:16:18.639 Mike Simonsek, CEO of the ninety nine Sense only stores, He is 212 00:16:18.720 --> 00:16:22.679 definitely one of the CEOs. Not only you should know, but you must 213 00:16:22.679 --> 00:16:26.440 know. Mister Smallsik, thank you so much for coming on today. Thank 214 00:16:26.480 --> 00:16:29.000 you and thanks for having the opportunity to talk. I loved it. I 215 00:16:29.000 --> 00:16:32.440 had a lot of fun. And listen, let's have a great, great 216 00:16:32.639 --> 00:16:36.159 Thanksgiving for all our folks out there, and let's help them have a great Thanksgiving.