99 Cents Only Stores Chain Announces Closure After Years of Challenges

The well-known discount chain, 99 Cents Only Stores, has made the tough decision to close all 371 of its locations across Arizona, California, Nevada, and Texas, marking the end of an era for bargain shoppers.

Interim CEO Mike Simoncic, who will be stepping down, expressed the company’s disappointment in having to take this step but acknowledged the significant and long-lasting challenges faced by the retail sector in recent years.

Bloomberg reported earlier that the future of the chain was uncertain, with a potential bankruptcy filing looming due to liquidity issues, while S&P highlighted the company’s struggle to achieve positive cash flow despite turnaround efforts.

In a statement, 99 Cents Only Stores cited the impact of the pandemic, inflationary pressures, and rising levels of shrinkage in retail parlance as contributing factors to its closure.

Another major player in the dollar store retail market, Dollar General, recently announced plans to raise its maximum pricing to address increased costs, signaling the overall industry’s need to adapt to changing economic conditions.

The issue of theft in retail has also been a significant concern, with Walmart taking steps to phase out self-checkout stations in hundreds of its stores due to ongoing shrinkage problems.

According to a recent survey by LendingTree, Generation Z consumers have shown a higher tendency to engage in retail theft, with a sizable portion admitting to unethical behaviors at self-checkout kiosks.