The end of era

by 8DonCo Fri Apr 05, 2024 9:45 am

99 Cent Only Stores to Close All 371 Locations Due to 'Inflationary Pressures'

The end of era 99-Cents-Only39-04042024-702ef155f24e4b8db940c0419a9b8c17

The end of era 99-Cents-Only39-04042024-702ef155f24e4b8db940c0419a9b8c17

99 Cents Only is closing all 371 stores in Arizona, California, Nevada and Texas, the discount retailer announced on Thursday, April 3.
The discount retailer is known for selling a wide variety of products, groceries and seasonal items. Executives cited changing economic conditions for the closures.
"This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," interim CEO Michael Simoncic said via a press release. "Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the Company's ability to operate."
"Shrink" in retail refers to inventory loss due to shoplifting, employee theft, vendor fraud, and/or administrative errors.
"We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades," Simoncic added. He will step down while Chief Restructuring Officer Chris Wells handles the company's "wind-down."

The first 99 Cents Only store opened in 1982, per the press release. According to KTLA, 99 Cents Only employs 14,000 workers.
Per the press release, the company will "liquidate all merchandise" and "dispose of certain fixtures, furnishings, and equipment," adding "sales under this agreement are expected to begin April 5, 2024 and will be carried out at all 371 of the Company's store locations."
The news of the closures comes as competitor Dollar Tree announced it is raising the price cap on some of its items to $7, also due to changing economic conditions.
The company, which acquired Family Dollar in 2014, also announced it is closing 600 Family Dollar stores.