Business & Real Estate

Carmichael discount store Falling Prices is popular — too popular, neighbor’s lawsuit says

What it’s like inside the Falling Prices discount store in Carmichael

The Falling Prices discount store opened in mid-January in Carmichael. Everything costs $6 on Tuesdays, $4 on Wednesdays and so on. By Saturdays, items are a quarter.
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The Falling Prices discount store opened in mid-January in Carmichael. Everything costs $6 on Tuesdays, $4 on Wednesdays and so on. By Saturdays, items are a quarter.

Falling Prices, a discount retail store in Carmichael that offers consecutively lower prices each day of the week until new stock arrives, is facing a lawsuit from a neighboring business that alleges its teeming crowds of patrons have become a nuisance.

Marconi Dental Group, located across an adjoining parking lot from Falling Prices, filed a lawsuit against the retail store, its property owners and its management service in July. The lawsuit says the frenzy of shopping activity sparked by Falling Prices’ deals has weakened the revenue of the dental practitioners and impacted their productivity.

On Tuesdays, everything in Falling Prices costs $6. Prices drop to $4 on Wednesdays, $2 on Thursdays and $1 on Fridays and finally down to 25 cents on Saturdays. The store receives overstock items from vendors including Amazon and Target on Sundays and Mondays, when it closes to refill its bins.

“From the moment that the Falling Prices store has opened with the Carmichael Center, defendant Falling Prices has created an attractive nuisance,” the dental group alleged in its complaint.

The store’s business model promotes shoppers lining up outside well before opening hours, and some even resort to camping out in the parking lot to get the best deals, Marconi Dental Group alleged.

The dental group said there has also been damage to vehicles and property in the shopping center in the scramble to acquire parking spaces before opening.

The lack of parking means dental patients sometimes miss their appointments while they desperately try to park elsewhere, the complaint said.

Falling Prices’ customers have essentially usurped the common areas of the center, the dental group argued, which has caused staff churn in its office, pushed patients to other providers, worsened productivity in employees and overall negatively affected the practice’s revenue, according to the complaint.

Furthermore, the dentists alleged that Falling Prices patrons habitually litter in the shopping center and cause traffic congestion in the lots as they load up their vehicles with cheaply purchased goods.

Carmichael Square LLC, the property owner of Falling Prices’ space, and CBRE Group, Inc., its property manager, are alleged to have permitted disorderly behavior in the shopping center, failed to mitigate the nuisance and provided inadequate security and supervision in the lot.

Marconi Dental Group is seeking an injunction against the alleged nuisance, plus damages and legal fees. The group said it had lost more than $1 million as a result of the allegations.

Representatives from Falling Prices did not immediately return request for comment.

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Vincent Moleski covers business and breaking news for The Bee and is a graduate student in literature at Sacramento State. He was born and raised in Sacramento and previously wrote for the university’s student newspaper, the State Hornet.