After first opening its doors in 1982, 99 Cents Only Stores offered customers general goods at fixed prices around the country. However, after 40 years in business, the retailer has announced it is closing all 371 of its locations.
Upon its inception, the chain offered goods for 99¢ or less. In 2007, this was elevated to 99.99¢ and products were introduced at higher prices. In recent years, it has succumbed to the fallout of the COVID-19 pandemic and subsequent lockdown, as well as inflation and a change in customer demands, all contributing to its total closure, the first steps of which area already happening.
All 99 Cents Only Stores are closing their doors
The chain announced on Thursday that all 371 of its 99 Cents Only Stores would be closing. “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said interim Chief Executive Mike Simoncic in a statement. “Unfortunately, the last several years have presented significant and lasting challenges in the retail environment.”
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Locations in California, where the store is based, as well as Arizona, Nevada, and Texas will be affected.
Simoncic cited “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.”
Steps are already being taken to prepare for the drastic move
The operators of the 99 Cents Only stores announced they will shut down all 371 locations throughout four states, with liquidation sales starting Friday.
https://t.co/Mp1lNaiudy— CBS News (@CBSNews) April 5, 2024
“We deeply appreciate the dedicated employees, customers, partners, and communities who have collectively supported 99 Cents Only Stores for decades,” added Simoncic. By time of writing, there has been no schedule set in stone for closing or how many employees will be losing their jobs. According to the Los Angeles Times, 99 Cents Only Stores employs about 14,000 staff members between all their locations.
A company statement went on to explain, “Following months of actively pursuing these alternatives, the company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets.”
Liquidation sales are set to begin on Friday. Hilco Global will manage the sale of the chain’s real estate assets in all of its locations across California, Arizona, Nevada, and Texas; Hilco Global was also part of the agreement to close all locations after experts searched for alternative solutions to stay afloat.
Have you ever shopped at a 99 Cents Only Store?
