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Last Updated on April 6, 2024 by Robert C. Hoopes

In a sad turn of events for bargain shoppers, 99 Cents Only stores, a popular discount retailer founded in Los Angeles in 1982, has decided to close all 371 of its locations. The decision comes as a result of various challenges faced by the company in the retail environment, including the impact of COVID-19, changing consumer demand, inflation, and rising levels of shrink.

The privately held company has reached an agreement with Hilco Global to liquidate merchandise and dispose of store fixtures as it winds down its business operations. This closure is part of a larger trend in the dollar-store category, with Dollar Tree also facing store closures.

Rising wages, inflation, and shrinkage have been significant factors affecting the profits of retailers in the deep-discount sector, with 99 Cents Only struggling with wage pressures, particularly in California. The chain was even considering a bankruptcy filing due to a liquidity shortfall.

Founded by David Gold, 99 Cents Only was known for its single-price retail concept, but in 2008, the store began deviating from its iconic 99-cent pricing strategy. The closure leaves behind large vacant properties in prime locations in Los Angeles County, adding to the increasing number of empty storefronts in the region.

The news of 99 Cents Only stores closing has been met with sadness from former employees and loyal customers. This closure also adds to the list of major retailers like REI and Macy’s that have recently announced store closures in the region. As the retail landscape continues to evolve, it is clear that even beloved discount stores are not immune to the challenges of the current market.