In a significant development in the retail industry, 99 Cents Only Stores has announced the closure of all 371 locations, marking the end of an era for the beloved discount chain. The decision comes amidst what the company terms “Bidenflation”, referencing the inflationary pressures that have gripped the economy.
CEO Mike Simoncic expressed profound disappointment over the necessity of this decision. He cited a myriad of challenges that have plagued the retail environment in recent years, including the unprecedented impact of the COVID-19 pandemic, shifting consumer preferences, rising levels of shrinkage, and persistent inflationary pressures.
Simoncic elaborated, stating, “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 company plans to initiate liquidation sales across its outlets before proceeding with the sale of real estate assets. While the decision is undoubtedly a difficult one, it reflects the harsh realities faced by businesses grappling with the economic aftermath of the pandemic and inflationary trends.
The closure of 99 Cents Only Stores underscores the broader implications of inflation on retail businesses and serves as a stark reminder of the need for adaptation and resilience in the face of economic challenges. As consumers bid farewell to a beloved shopping destination, the closure serves as a poignant symbol of the changing retail landscape in the wake of unprecedented economic disruptions.
