“Inflationary pressures” is one of the reasons cited for the stores closing.
From Daily Mail:
“Discount store 99 Cents Only has announced it will shutter all 371 of its locations, citing high inflation and rising theft as the reason for the closures.
The West Coast brand – which has shops in Califorbia, Texas, Arizona, ad Nevada – announced the news in a press release Thursday without giving a timeline for the closures.
It comes amidst a widespread ‘retail apocalypse’ which is seeing bricks-and-mortar stores struggle to combat rampant theft and increasingly tight margins.
Rival budget retailer Dollar Tree recently announced plans to shutter nearly 1,000 stores while also raising its price cap.
Mike Simoncic, interim chief executive officer of 99 Cents, said in a statement: ‘This was an extremely difficult decision and is not the outcome we expected or hoped to achieve. ‘Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including 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.’
Meanwhile, Dollar Tree has announced plans to shut 1,000, Macy’s has said it will cull 150 – a third of its total – and drug store Rite Aid is shuttering 77.
Last year, major US chains including Target, CVS, Macy’s and Rite Aid were behind nearly 3,000 stores closures in 2023.”
Read the whole story here.
As the saying goes:
DCG