California-based 99 Cents Only Stores, a staple in the bargain retail industry for over four decades, has announced the closure of all 371 of its outlets across California, Arizona, Nevada, and Texas. The decision comes after the company faced insurmountable challenges due to the COVID-19 pandemic, changes in consumer demand, inflation, and rising levels of product shrink. Interim CEO Mike Simoncic, who will be stepping down, expressed his disappointment in having to make this difficult decision, stating that the company had explored all possible alternatives before determining that an orderly wind-down was necessary.

Founded in 1982 by Dave Gold, who opened the first store in Los Angeles, 99 Cents Only Stores quickly gained popularity with its concept of offering quality items for 99 cents. Despite doubts from friends and family, Gold's idea caught on, leading the company to go public in 1996 and eventually being sold for $1.6 billion in 2011. The chain, known for its trademarked name even as it shifted away from selling items solely at 99 cents, has now become the latest casualty in a wave of store closures across the US retail industry.

With liquidation sales already underway, the closure of 99 Cents Only Stores adds to a growing list of retailers, including Dollar Tree and Macy's, that have been forced to shutter locations due to factors such as inflation, reduced government benefits, and increased shoplifting rates. The retail industry continues to face challenges as the effects of the COVID-19 pandemic, changing consumer behaviors, and economic pressures persist.