Business
Column: More than just a store, 99 Cents Only gave a fair shake to all who entered
At 8:30 on Sunday morning, the parking lot at the 99 Cents Only store in Santa Ana was already beginning to fill. A few days earlier, the chain had announced it was closing all 371 of its stores in California, Nevada, Arizona and Texas.
This location off Main Street had seen better days. Unhoused people wandered near the trash bins. The walls and walkway leading to the front door were grimy. A massive window decal of fresh fruit near the entrance was peeling.
No one smiled while grabbing a shopping cart and walking in, even though all items were 10% off and signs screamed “Everything Must Go! Up to 30% Off.” Customers expressed their condolences to anyone with a name tag and vented to anyone who would listen.
“I blame [Gavin] Newsom,” said Rick Juarez, 53, referencing the California governor as he entered the store to stock up on batteries. He had shopped at this location for “at least” 20 years. “Too many taxes, too high the minimum wage. These companies just can’t compete, and so they have to close. And it’s poor people like us who end up suffering.”
Victor Barrios said he hopes the rumors of investors wanting to save the 99 Cents Only empire were true.
“This needs to stay open,” the 38-year-old delivery driver said. “I make OK money, and buying here helps me. But imagine if you’re on WIC? If you’re on Social Security? You need a place like this. Are people now supposed to go to Ralphs? Or Target? With what money?”
I can count on my hands the number of times I had previously shopped at 99 Cents Only, and maybe even on one hand — I’m more of a swap meet kind of guy. I’ve only gone with my wife, only to this location. But I had to visit out of respect — and sadness.
The 99 Cents Only Stores’ demise is another blow for the thrifters who make Southern California tick.
For generations, millions of us — immigrants, long-timers, working-class folks, or people who just want a good deal — have fueled an alternate economy far removed from fancy department and grocery stores. We patronize swap meets, Salvation Army stores, half-off warehouses and garage sales. Food comes from bartering with neighbors, or outlets like 99 Cents Only. My people inspired Carey McWilliams to half-jokingly call Los Angeles the “junkyard for a continent” in his 1946 masterpiece, “Southern California: An Island on the Land.”
Even today, as I make a good living and my wife runs her own restaurant, we live a penny-pinching life. A grocery splurge for us isn’t Whole Foods or Erewhon; it’s Trader Joe’s. I get my shirts and khakis at Marshalls or Ross Dress for Less, and guayaberas at the Anaheim Indoor Swap Meet or Olvera Street. The last time I spent more than $100 on an item of clothing was a black suit from Nordstrom for my mother’s funeral.
Those of us in this fellowship of frugality seek out bargains because we know that California’s booms inevitably end in bust. That’s what makes the imminent end of the 99 Cents Only empire — which started in Westchester in 1982 — so distressing.
Marta Lara, left, helps Anita Hernandez at a 99 Cents Only store in Los Angeles in 2008.
(Nick Ut / Associated Press)
Interim Chief Executive Mike Simoncic said in a statement that the chain was closing because of “significant and lasting challenges in the retail environment.”
Even though it was a multibillion-dollar company, 99 Cents Only operated under a premise straight from the Great Depression: a fair shake for everyone who entered. Here, the retiree shopped alongside the hipster, and the only colors that mattered were the bright blue and pink on the marquee of each store. The chain had locations in blue-collar towns such as Santa Ana and Colton, but also suburbs such as Alhambra and Santa Monica.
Yes, off-brands and remaindered products made up the bulk of offerings, but treasures awaited for those who regularly came. One day, you’d get a generic brand of sriracha, another time, regular Tapatío hot sauce at prices you last saw during your childhood. And who knew when you might encounter a small blowup doll of AC/DC frontman Angus Young, like I did on Sunday?
There was a camaraderie among fans that rivals such as Dollar Tree or Dollar General or even Walmart were never able to match. Founder Dave Gold was a SoCal business iconoclast on the level of In-N-Out founder Harry Snyder and cafeteria magnate Clifford Clifton, who made sure that the least among us could eat and shop like kings.
Nowadays, discount shopping is just an Amazon click away — a race to the bottom of inferior products and loneliness.
“I could buy toys for my younger kids, my older kids could get pens for school, and I could do groceries for all of us,” Altagracia Nuñez told me in Spanish as she perused the beauty aisle, where sticks of men’s and women’s deodorant looked like tumbled dominoes. “And the prices, of course.”
She stayed quiet, then offered a weak laugh. “Well, everything is more expensive nowadays, so I guess this had to end.”
Friends told me that their local 99 Cents Only stores were beginning to look as bereft as the pandemic days. But the Santa Ana branch I visited was well stocked. It was interesting to see what was available and what wasn’t.
The shelves that once held reusable containers were empty, but the Easter decorations hadn’t moved. There were no more bleach bottles by LA’s Totally Awesome, but the rest of the brand’s cleaning products were available. Milk was sold out, but stacks of bland El Comal corn and flour tortillas — already marked 50% off — were barely touched.
Everyone’s shopping cart seemed fuller than usual, and they all seemed to have at least one package of both toilet paper and cleaning towels. I didn’t need either, or anything, really. So I bought an array of canned goods from a bygone era — Hormel canned tamales, Armour potted meat, Libby’s chicken Vienna sausages and pork luncheon meat, whatever on Earth that is — to mark the end of another Southern California classic.
Shoppers exit the 99 Cents Only store in Huntington Beach
(Allen J. Schaben / Los Angeles Times)
The Frito-Lay and Takis displays near the checkout counter were picked clean, as was the Pepsi cooler. Cheery new jack swing tunes played on invisible speakers. Behind me, a man softly sang to himself “Se va, se va la 99” (“It’s going, the 99 is going”). In front of me, a woman announced in Spanish to no one in particular, “I think I’ll come back here another time.”
“We close June 3,” the cashier responded. “Come back.”
He let a beat pass. “Come here until we’re done.”
Business
California-based company recalls thousands of cases of salad dressing over ‘foreign objects’
A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”
The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.
Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.
None of the 42 locations where the product was sold were in California.
Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.
“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”
The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.
The company recalled the following types of salad dressing:
- Creamy Poblano Avocado Ranch Dressing and Dip
- Ventura Caesar Dressing
- Pepper Mill Regal Caesar Dressing
- Pepper Mill Creamy Caesar Dressing
- Caesar Dressing served at Costco Service Deli
- Caesar Dressing served at Costco Food Court
- Hidden Valley, Buttermilk Ranch
Business
They graduated from Stanford. Due to AI, they can’t find a job
A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.
The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.
When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.
Top tech companies just don’t need as many fresh graduates.
“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”
While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.
Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.
“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”
The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.
Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.
“The industry for programmers is getting very oversaturated,” Akgul said.
The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.
Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.
It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.
In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.
Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.
Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.
A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.
“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”
To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.
Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.
Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.
Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.
As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.
“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”
After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.
Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.
“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”
Business
Disney+ to be part of a streaming bundle in Middle East
Walt Disney Co. is expanding its presence in the Middle East, inking a deal with Saudi media conglomerate MBC Group and UAE firm Anghami to form a streaming bundle.
The bundle will allow customers in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE to access a trio of streaming services — Disney+; MBC Group’s Shahid, which carries Arabic originals, live sports and events; and Anghami’s OSN+, which carries Arabic productions as well as Hollywood content.
The trio bundle costs AED89.99 per month, which is the price of two of the streaming services.
“This deal reflects a shared ambition between Disney+, Shahid and the MBC Group to shape the future of entertainment in the Middle East, a region that is seeing dynamic growth in the sector,” Karl Holmes, senior vice president and general manager of Disney+ EMEA, said in a statement.
Disney has already indicated it plans to grow in the Middle East.
Earlier this year, the company announced it would be building a new theme park in Abu Dhabi in partnership with local firm Miral, which would provide the capital, construction resources and operational oversight. Under the terms of the agreement, Disney would oversee the parks’ design, license its intellectual property and provide “operational expertise,” as well as collect a royalty.
Disney executives said at the time that the decision to build in the Middle East was a way to reach new audiences who were too far from the company’s current hubs in the U.S., Europe and Asia.
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