California-based 99 Cents Only stores on April 4 announced the closure of all 371 of its locations across Arizona, California, Nevada and Texas, becoming the latest retailer to shut down because of theft.

Founded in the 1960s, the company has struggled to maintain its low price points in the face of inflation and cited “inflationary pressures and other macroeconomic headwinds” alongside retail theft as reasons for the closures.

While 99 cents in 1960 would be worth about $10.48 today.

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“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” CEO Mike Simoncic said. “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. We deeply appreciate the dedicated employees, customers, partners and communities who have collectively supported 99 Cents Only stores for decades.”

Discount and dollar stores have struggled more than other retailers, with Family Dollar Stores Inc. and its parent company Dollar Tree Inc. announcing last month the closure of 1,000 stores across the United States because of inflation and theft. Dollar Tree also announced a price increase for its premium items from $5 to $7.

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"This year, across 3,000 stores, we expect to expand our multiprice assortment by over 300 items at price points ranging from $1.50 to $7," said Dollar Tree CEO Rick Dreiling during the company's earnings call.



Shoplifting has become a significant issue for retail giants, including Walmart Inc. and Target Corp.

The Council on Criminal Justice reported that shoplifting incidents were up 16% in the first half of 2023 compared to the first half of 2019. New York and Los Angeles experienced the largest increases in retail crime, with rates rising by 64% and 61%, respectively, in 2023. More than 95% of shoplifting incidents were carried out by individuals, not by mobs or groups.

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This article 99 Cents Only Stores Latest Victim Of Retail Crime, Forced To Close All Locations As Retail Theft Grows By 16% originally appeared on Benzinga.com

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