San Francisco, California – The 99 Cents Only Stores chain, founded in 1982 by Dave Gold, is set to close all 371 of its outlets, marking the end of a 42-year run of offering bargain-basement merchandise in California, Arizona, Nevada, and Texas. Interim CEO Mike Simoncic announced the closures, citing struggles stemming from the COVID-19 pandemic, changes in consumer demand, inflation, and increasing levels of product shrink. The company will begin liquidating its inventory, as well as fixtures, furnishings, and equipment.
The decision to shut down the stores comes as a blow following challenges in the retail environment. Simoncic expressed regret over the outcome, emphasizing the unforeseen difficulties faced by the company in recent years. The closure of 99 Cents Only Stores follows the announcement from Dollar Tree, a fellow discount retailer, about closing 1,000 stores in the previous month.
Gold’s vision for the 99 Cents Only Stores, fueled by his entrepreneurial spirit, quickly gained momentum from consumers across various socioeconomic backgrounds. His innovative approach of offering quality items priced at 99 cents stood out in the retail landscape. Despite initial skepticism from friends and family, Gold persevered and managed to take the company public on the New York Stock Exchange in 1996, later selling it for approximately $1.6 billion in 2011.
Although the chain initially focused on selling items priced at 99 cents, changing market dynamics in recent years made this unsustainable, albeit the company staying true to its iconic name. Gold’s legacy of offering affordable merchandise at a fixed price point left a lasting impact on the retail industry, demonstrating the power of innovative thinking and adaptability in the face of evolving consumer preferences.