In a stunning blow to the discount retail sector, 99 Cents Only Stores has announced it will permanently close all 371 of its locations, citing insurmountable financial struggles caused by inflation, declining sales, and lingering pandemic-related setbacks.
The move marks the end of an era for the budget-friendly chain, which had long been a go-to destination for affordable household essentials, groceries, and seasonal items. However, mounting operational challenges and stiff competition from larger discount retailers such as Dollar Tree and Dollar General ultimately led to its downfall.
Why 99 Cents Only Couldn’t Survive
Despite being in the discount sector—which typically thrives during economic downturns—99 Cents Only struggled to maintain its low-price model in the face of rising costs for goods, labor, and rent. The company had reportedly been exploring bankruptcy options, but after assessing its financial position, executives determined that full liquidation was the only viable path forward.
Several factors contributed to the retailer’s collapse, including:
- Inflation & Rising Costs: Higher prices for inventory and transportation made it difficult to maintain the ultra-low pricing strategy that defined the brand.
- Increased Competition: Rivals like Dollar General, Dollar Tree, and Family Dollar have expanded aggressively, offering a broader selection of products and better supply chain efficiencies.
- Shifts in Consumer Behavior: Many shoppers have turned to e-commerce platforms or larger discount chains for budget-friendly shopping, further cutting into 99 Cents Only’s market share.
- Lingering Pandemic Impact: The COVID-19 pandemic led to decreased foot traffic, and the retailer struggled to recover as shoppers increasingly preferred big-box stores and online alternatives.
Liquidation Sales Begin as Closures Loom
99 Cents Only has already begun liquidation sales at its stores, offering deep discounts as it prepares to clear out inventory. The closures will impact thousands of employees, with the company stating that severance packages or job placement assistance may be offered where possible.
Industry experts say the loss of 99 Cents Only will leave a void in many communities, particularly in areas where budget-conscious shoppers relied on the chain for everyday necessities.
What’s Next for the Discount Retail Sector?
While 99 Cents Only exits the market, competitors like Dollar Tree and Dollar General are expanding rapidly, looking to capture displaced customers. The demand for low-cost retail options remains strong, but success in the sector increasingly depends on efficient operations, competitive pricing, and digital adaptability.
For many, the closure of 99 Cents Only signals the end of a once-beloved shopping destination—but it also serves as a cautionary tale for retailers struggling to adapt to the evolving economic and consumer landscape.
