In a sweeping move that marks the end of an era for bargain shoppers, the "99 Cents Only" chain is set to permanently close all of its 371 locations. Faced with a perfect storm of retail challenges, the discount store is buckling under the weight of what they're calling "significant and lasting challenges in the retail environment," including the harsh ripple effects of the COVID-19 pandemic. According to a statement obtained by Fox San Antonio, their demise is fuelled by "shifting consumer demand, rising levels of shrink, persistent inflationary pressures, and other macroeconomic headwinds."
The closing of 99 Cents Only Stores, founded in 1982, represents a significant cultural shift, as inflation continues to seriously disrupt consumer patterns and the retail landscape. Among those attempting to navigate this environment is Olive Garden, which, in a recent earning's call, admitted they are starting to lose customers earning less than $75,000 annually. Meanwhile, finance company Hilco Global is set to quickly oversee not just the liquidation of the company's inventory but also to then try to sell off the property assets. "This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," Interim Chief Executive Officer Mike Simoncic said in a news release published by The Packer. He will step down as Chris Wells, managing director at Alvarez & Marsal, takes over as chief restructuring officer.
The liquidation sales, which kicked off on April 5th, are offering shoppers up to 30% off on a wide range of items, from everyday groceries to seasonal products. While bargain hunters may temporarily rejoice at these discounts, the sales represent the sunsetting of a brand that stood as a staple to value-minded customers for over four decades. The company assures shoppers that gift cards will remain valid until April 19, a scant nod to the patrons that once depended on its promise of affordability.
The closure of 99 Cents Only Stores is yet another sign of the troubling economic times. With a Gallup poll indicating that a staggering 79% of Americans are worried about inflation, according to Fox San Antonio, and 78% anxious about the U.S. economy, the move to close the stores serves as both a symptom and symbol of the larger troubles that lay beyond the bargain bins. Comedian Bill Maher has also weighed in on the inflationary discourse, pinning the "inflationary spiral" not on President Joe Biden but on his predecessor, though these political reckonings offer little solace to those directly affected by store closures and the economy's downturn.
