DEDICATED shoppers of 99 Cents Only are devastated over being forced to say goodbye to the discount store.
99 Cents Only pointed to crime as one factor as it announced in early April that all 371 of its locations will soon be gone for good.
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The discount store, founded in 1982, started liquidating its products on April 5, but an official closing date has not been announced.
The decision to close down all the 99 Cents Only Stores across California, Nevada, Texas, and Arizona was due to various reasons.
Mike Simoncic, interim company CEO of 99 Cents Only, wrote in a statement that it “was an extremely difficult decision and is not the outcome we expected or hoped to achieve.”
He explained that 99 Cents Only had been dealing with “significant and lasting challenges in the retail environment.”
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The discount store is closing all stores due to the “unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures, and other macroeconomic headwinds,” Simoncic wrote.
He insisted these issues “have greatly hindered the company’s ability to operate.”
LEFT WITH NO CHOICE
99 Cents Only said in a press release that it worked to try and keep the chain open but was not able to find a way to do so.
“99 Cents Only Stores, together with its financial and legal advisors, engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to continue,” the company wrote.
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“Following months of actively pursuing these alternatives.
“The company ultimately determined that an orderly wind-down was necessary and the best way to maximize the value of 99 Cents Only Stores’ assets.”
Number Holdings, Inc., the parent company of 99 Cents Only Stores, filed for bankruptcy on April 7.
The company noted that it was filing appropriate motions with the court to support operations during the wind-down process, including payment of employee wages.
UPSET BY CLOSURES
Many shoppers are not taking the mass closures very well and have shared their shock over the news.
The discount products at 99 Cents Only allowed people to afford essential products at prices that were unlike any at other stores.
One shopper explained on X, formerly known as Twitter, how the store helped their family get by for years.
“This really is the worst day,” X user Crysona Cora said.
99 Cents Only Stores’ rise to popularity
99 Cents Only Stores were a staple in the western United States ever since the launch of the first store in the 1980s. It all started with a business owner who hoped to redefine the dollar store concept.
In 1982, David Gold established 99 Cents Only Stores in Los Angeles, California, aiming to revolutionize the concept of dollar stores.
Gold envisioned his stores as havens offering customers high-quality, practical products at affordable prices, akin to Trader Joe’s founding ethos.
Marketed as a “premier deep-discount retailer,” the company had a diverse array of name-brand products and general merchandise, emphasizing convenience and value.
99 Cents was known for its expansive selection, from party supplies to household essentials and fresh groceries, and being a one-stop shop with budget-friendly prices.
Despite its longstanding commitment to selling items at 99 cents, economic pressures forced the company to adjust its pricing model in 2008.
In 2011, 99 Cents Only Stores underwent a $1.6 billion acquisition by private equity firm Ares Management and the Canada Pension Plan Investment Board.
At its peak, the chain employed approximately 14,000 individuals across its 371 locations, reflecting its widespread presence in the retail landscape.
“I’m sad to see it go. 99 Cents Store has been there for as long as I can remember.
“Really helped me, my little bro and my mom put a lot back then and still shop there. This sucks.”
Another shopper said they can’t imagine what it would be like having to shop at big retailers if you’re receiving aid to afford groceries.
“This needs to stay open,” shopper Victor Barrios told the Los Angeles Times.
“I make OK money, and buying here helps me. But imagine if you’re on WIC? If you’re on Social Security?
“You need a place like this. Are people now supposed to go to Ralphs? Or Target? With what money?”
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As the retailer winds down operations, it is promoting a going-out-of-business sale on its website.
Customers can take advantage of 30% off the lowest ticket price on items in stores.
The first-ever 99 Cents Only Store
99 Cents Only Stores was founded in 1982 in Los Angeles, California, by David Gold.
However, it wasn’t Gold’s first retail venture.
He inherited a small liquor store in downtown LA in the 1960s and decided to try selling bottles of wine at the fixed price of 99 cents.
The experiment was an instant success and he eventually hatched a plan to open a store where everything was sold for 99 cents.
When he opened the first 99 Cents Only Store in 1982, he sold TVs for just 99 cents to the first nine customers – but more than 300 people lined up trying to be first in line.
That led to a frenzy of media coverage and he continued the tradition of offering 99-cent deals for exciting products at every grand opening in the years that followed.
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