99 Cent Stores Shuttering All Locations, Citing Crime and Inflation As Key Factors
One of the first places I discovered when I moved to California in the late 1980s was the 99 Cents Only Store. One of my apartments was in walking distance of one, and I could buy a week's groceries for $20. Those halcyon days are long gone, not just for me and others, but for the iconic 99 Cents Only Store. When the company had to raise their price point from $0.99 to $1.01 a few years back, you kind of got the sense they weren't going to outrun this. It was finally the weight of inflation and the COVID [scamdemic] that did them in.
I’m sorry for the 14,000 workers about to lose their jobs.
The 99 Cents Only Stores is closing all 371 of its stores in Arizona, California, Nevada and Texas.
The company is liquidating everything starting Friday.
— Lynnette KhalfaniCox (@themoneycoach) April 5, 2024
On Thursday, the company officially announced plans to close down, citing financial difficulties stemming from the pandemic, changing consumer demand and rising inflation.
The company's press release tells the tale that is becoming the spirit of the age: https://www.prnewswire.com/news-releases/99-cents-only-stores-announces-wind-down-of-business-operations-302108746.html
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said Mike Simoncic, Interim Chief Executive Officer. “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.”
The press release failed to mention rampant retail theft but you know that factors in as well: https://apnews.com/article/california-retail-theft-legislation-smash-grab-4472b135a8c811cffac2d35571a99cae
Who is this really hurting? Well the 17,000 employees (the X post above failed to factor in the people in the corporate office and ancillary operations) who are now on the unemployment line. At 5.3 percent, California and Nevada already have the highest unemployment rates in the nation. California just instituted a $20.00 an hour minimum-wage hike, which is going over like a lead balloon; so the closure of a small business like 99 Cents Only Stores is only going to add to that burden.
https://redstate.com/jenniferoo/2024/04/05/99-cent-only-stores-shuttering-all-locations-citing-crime-and-inflation-as-key-factors-n2172342
