Some 99 Cents Only stores across California and other states, which have undergone recent closures, will soon become part of Dollar Tree after the company announced it acquired leases for 170 of the stores.
Early last month, the company started its liquidation process, which involved merchandise, equipment, and inventory across all 371 store locations. Financial services holding company Hilco Global is handling the liquidation process.
The majority of 99 Cents stores closed following the end of discounted sales. More than 70 store closures in Southern California included store closures in the following locations:
Alhambra, Apple Valley, Arcadia, Artesia, Azusa, Baldwin Park, Bellflower, Brea, Burbank, Canoga Park, Covina, Corona, Cypress, Downey, Eastvale, El Cajon, El Monte, El Segundo, Garden Grove, Glendale, Granada Hills, Hacienda Heights, Hemet, Huntington Beach (3), Lake Elsinore, Lakewood, Lancaster, Lomita, Long Beach, Signal Hill, Ladera Heights, Lynwood, Menifee, Montebello, Moreno Valley (2), Norwalk (3), Ontario (3), Orange, Paramount, Placentia, Rancho Cucamonga, Riverside (2), South El Monte, San Ysidro, San Diego County (6), Santa Ana, Sylmar, Temecula, Harbor City, Torrance, Tustin (2), Upland, Santa Clarita-Valencia, Ventura, West Covina and Whittier.
According to a company release, a variety of factors played a role in the company’s economic downturn, which effectively led to the closures, among which shifting consumer demand, rising “shrink,” or theft was at the helm of challenges the company had been facing.
“Rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds all … greatly hindered the company’s ability to operate,” said interim Chief Executive Officer Mike Simoncic in the release.
NTD has contacted Mr. Simonic for further information but did not receive a reply before the publication of this article.
Nonetheless, the discount retail industry overall is currently proving volatile, as Dollar Tree is closing multiple other store locations under the Family Dollar banner despite their recent acquisitions.
Hundreds of other stores operating under Family Dollar have faced closures, with a further 1,000 out of the company’s 8,000 Family Dollar stores set to close by 2025, according to a statement by the company in March. Dollar Tree acquired Family Dollar stores in 2015 for $8.5 billion.
By contrast, however, Dollar General—a key competitor—is showing a different trend, as it opens around 1,000 stores annually. Roughly 19,000 Dollar General stores are currently in operation in the United States, according to Statista.
