Popular dollar store to shutter ALL locations in 'extremely difficult decision'

Discount store 99 Cents Only has announced it will shutter all 371 of its locations, citing high inflation and rising theft as the reason for the closures.

The West Coast brand - which has shops in California, Texas, Arizona and Nevada - announced the news in a press release Thursday without giving a timeline for the closures. 

It comes amidst a widespread 'retail apocalypse' which is seeing bricks-and-mortar stores struggle to combat rampant theft and increasingly tight margins.

Rival budget retailer Dollar Tree recently announced plans to shutter nearly 1,000 stores while also raising its price cap.

Mike Simoncic, interim chief executive officer of 99 Cents, said in a statement: 'This was an extremely difficult decision and is not the outcome we expected or hoped to achieve.

Discount store 99 Cents Only has announced it will shutter all 371 of its stores, citing high inflation and rising theft as the reason for the closures

Rival budget retailer Dollar Tree recently announced plans to shutter nearly 1,000 stores while also raising its price cap

'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.'

Retailers use the term 'shrink' to refer to the value of goods that are lost or stolen in store. 

99 Cents Only Stores is the latest this year to shut outlets this year- or announce plans to do so.  

Walmart has shut three in 2024 and will shut another three in weeks. 

Best Buy permanently closed ten stores this month - and now has 100 fewer shops than before the pandemic. 

Meanwhile, Dollar Tree has announced plans to shut 1,000, Macy's has said it will cull 150 - a third of its total - and drug store Rite Aid is shuttering 77. 

Last year, major US chains including Target, CVS, Macy's and Rite Aid were behind nearly 3,000 stores closures in 2023.

Meanwhile Trader Joe's has upped the price of a single banana from 19 to 23 cents. It equates to a 21 percent increase

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Fascinating data seen by DailyMail.com reveals that inflation has eroded around a third of the buying power of $100 at the grocery store in the last five years

While all shops are struggling to keep up with hot inflation, it affects budget retailers worst due to their already-tight margins. 

Dollar Tree said last month it was raising the maximum price cap on its goods to $7.

Meanwhile Trader Joe's has upped the price of a single banana from 19 to 23 cents. It equates to a 21 percent increase. 

The rate of annual inflation rose slightly to 3.2 percent in February, the latest data available.

It marks a decline from a 40-year-high of 9.1 percent in June 2022 but remains well above the Federal Reserve's 2 percent target.

Fascinating data seen by DailyMail.com reveals that inflation has eroded around a third of the buying power of $100 at the grocery store in the last five years. 

In 2019, the sum would have bought shoppers a healthy 32-item bag complete with milk, eggs, cereal, dish soap and more.

However today customers would have to take at least 10 of those products out of their basket to maintain the same budget.