99 Cents Only Stores is the latest victim of retail crime and is forced to close all branches as retail thefts increase by 16%

California-based 99 Cents Only announced the closure of all 371 stores in Arizona, California, Nevada and Texas on April 4, becoming the latest retailer to close due to theft.

The company, founded in the 1960s, struggled to maintain its low prices in the face of inflation, citing “inflationary pressures and other macroeconomic headwinds” as well as 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 for,” said CEO Mike Simoncic. “Unfortunately, the past few years have presented significant and ongoing challenges to the retail environment, including the unprecedented impact of the COVID-19 pandemic, changing consumer demand, increasing shrinkage rates, persistent inflationary pressures and other macroeconomic headwinds that have significantly impacted the Company's ability to operate. We deeply value 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: Family Dollar Stores Inc. and its parent company Dollar Tree Inc. announced last month the closure of 1,000 stores in the United States due to inflation and theft. Dollar Tree also announced a price increase on its premium items from $5 to $7.

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“We expect to expand our overprice assortment to include over 300 items priced between $1.50 and $7 across 3,000 stores this year,” Dollar Tree CEO Rick Dreiling said during the company's earnings call .

Shoplifting is a problem for retail giants like Walmart Inc. and Target Corp. become a significant problem.

The Council on Criminal Justice reported that shoplifting increased 16% in the first half of 2023 compared to the first half of 2019. New York and Los Angeles saw the largest increases in retail crime at 64% and 61%, respectively. or in 2023. More than 95% of shoplifting was committed by individuals, not mobs or groups.

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