(Photo : Pexels/MichaelMorse)
Shoppers were upset that they would need to look for other places to shop instead of their favorite 99 Cents Only Stores.
Closing these stores is causing a stir in the retail industry, and customers are hurrying to take advantage of final discounts.
99 Cents Only Stores Closing Nationwide
The retailer, which operates 371 stores in California, Texas, Arizona, and Nevada, announced Thursday that it is closing its business operations.
The company will hold liquidation sales at all its locations and plans to sell its real estate assets.
"This was an extremely difficult decision and not the result we wanted," said Mike Simoncic, the interim CEO of the company, in a statement.
99 Cents Only Stores offer a variety of products, including fresh produce, pantry staples, household items, and beauty products. The chain also features well-known brands such as Nivea, Lego, and Heinz, which it acquires from larger stores that overstock.
Some of the products at 99 Cents Only Stores come from liquidation purchases. The company reduces costs by using its truck fleet.
Simoncic has announced that the chain will shut down all 371 of its stores, which are located in Nevada, Texas, California, and Arizona. The company started liquidation sales for its remaining merchandise on April 5.
The company, employing around 14,000 workers, announced it had struck a deal with Hilco Global to sell off all its merchandise and eliminate some store furnishings, fixtures, and equipment.
"99 Cents Only Stores, with the guidance of financial and legal experts, carried out a thorough examination of all reasonable options to find a way to keep the business running," the company stated. "After months of exploring these options, the company concluded that the most orderly and valuable approach was to shut down."
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99 Cents Only was founded in Los Angeles in 1982 by David Gold, who introduced the concept of selling every item for 99 cents, a strategy highlighted by the Los Angeles Times.
At the time, dollar stores typically sold low-quality or undesirable products. Gold, however, envisioned his stores differently. He aimed to provide high-quality, useful items at a constant low price.
For most of its history, the store kept its price at 99 cents. This only changed in 2008 when economic pressures such as inflation, higher minimum wages, and increased food costs necessitated a price adjustment, as reported by the Times.
Community Mourns Closing of 99 Cents Only Stores
(Photo : Pexels/JuliaMCameron)
Customers have taken to social media to express their sadness over the shutdown of 99 Cents Only Stores.
"This was one of the busiest stores in Merced and had inexpensive groceries," a Facebook user lamented. "I'm gutted."
"Sad!" another user simply put it.
"Really helpful for many people, including myself!" a different user added.
On X (formerly Twitter), one user called it the "end of an era," highlighting the chain's inception in 1982.
"So many households rely on buying everything they can there," said another.
Simoncic explained that the company has been unable to recover from severe economic challenges caused by the pandemic.
He also noted that inflation and shrinkflation-a reduction in product size or quantity while prices remain the same-have made it difficult for the company to effectively meet changing consumer needs.
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