Los Angeles, California – The iconic 99 Cent Only Stores chain, with 371 locations across four states, is facing closure due to insurmountable challenges surrounding inflation and theft. Interim CEO Mike Simoncic expressed deep regret over the difficult decision to shut down the beloved discount retailer, citing a combination of factors such as the lingering effects of the COVID-19 pandemic, shifting consumer preferences, and the increasing instances of shrinkage from theft and other sources.
Simoncic highlighted the substantial impact these issues have had on the company’s operations, making it increasingly difficult to sustain business. After exploring various alternatives to keep the chain afloat, the company ultimately concluded that an orderly wind-down was the best course of action to maximize the value of its assets.
The closures will affect all 371 locations in California, Arizona, Nevada, and Texas, with stores already beginning the process of liquidating their inventory. The move comes as a blow to loyal customers who had celebrated the chain’s 42nd year of operation not long before the decision to shut down was made.
99 Cents Only Stores is the latest casualty in a wave of businesses succumbing to the pressures of escalating inflation. Major retailers like Dollar Tree and Macy’s have also announced store closures in response to the challenging economic environment, further underscoring the widespread impact of inflation on the retail sector.
Inflation continues to pose a persistent challenge, with recent reports showing a slight increase in the Consumer Price Index, signaling ongoing price pressures in the economy. The core Personal Consumption Expenditures Index, a key measure of inflation, also recorded an uptick in February, highlighting the ongoing struggle to rein in prices and stabilize the economy.
As businesses grapple with the fallout from inflation and other economic challenges, the closure of 99 Cent Only Stores serves as a stark reminder of the evolving landscape facing retailers in today’s uncertain economic climate. The loss of this beloved chain reflects the broader struggles that businesses are facing nationwide, as they navigate a challenging environment fraught with economic uncertainty and shifting consumer trends.