Shoppers in California Blame Newsom as They Scramble to 99 Cents Only Stores Before Closures

By: Georgia | Published: Apr 15, 2024

This month, the beloved 99 Cents Only Stores announced a wave of closures across California, Nevada, Texas, and Arizona, totaling 371.

With 265 stores closing in California alone, the impact is substantial for communities that have depended on these outlets for budget-friendly finds.

A California Institution Says Goodbye

Since their establishment in 1982, 99 Cents Only Stores have become a fixture in California’s retail scene.

A photo of a 99 Cents Only Store from across a grassy area and parking lot, with a prominent pink and blue sign. A banner reading "GOING OUT OF BUSINESS" is visible on the side of the building

Source: Wikimedia Commons

The closure of many original locations represents more than a business decision; it signifies a significant disruption for the locals. At the core of this impactful decision is the company’s headquarters in Commerce, California.

Economic Policies Under Fire

Following the store closures, customer frustration is mounting.

Governor Gavin Newsom speaking at a public event, gesturing with his hand, wearing a baseball cap and a navy blue jacket. The California state seal is visible on a podium in front of him

Source: CAgovernor/X

Rick Juarez, a loyal customer for more than two decades, expressed his discontent to the Los Angeles Times: “I blame [Gavin] Newsom. Too many taxes, too high the minimum wage. These companies just can’t compete, and so they have to close. And it’s poor people like us who end up suffering.”

More Than Just a Store to Many

For longtime patrons like Juarez, the Main Street store has been more than a shopping destination; it has been part of his routine for 20 years.

A street corner view of a 99 Cents Only Store with white and blue façade, a large billboard for 'Yellowjackets' on TV Showtime above it, under a clear blue sky

Source: Wikimedia Commons

With the closures approaching, he is stocking up on essentials like batteries, aware that soon, such simple conveniences will be a thing of the past.

Clearance Sales Attract Crowds

News of the store closures has sparked a flurry of “everything must go” sales.

The façade of a 99 Cents Only Store with several parked cars in front. A large banner across the top of the store announces "GOING OUT OF BUSINESS!"

Source: Wikimedia Commons

Fox News reports that crowds are converging in large numbers to take advantage of the final days at their cherished discount stores, searching for deals on a wide array of items.

The Necessity of Affordable Options

Altagracia Nuñez shared with the Los Angeles Times how the store played a crucial role in managing her family’s budget, allowing her to purchase everything from toys for her children to household groceries.

The storefront of a 99 Cents Only Store featuring the store's signage with a large "99¢" symbol, a tree to the left, and colorful product displays visible through the front windows

Source: Wikimedia Commons

With the stores closing, many like her who are financially constrained face new challenges.

A Vital Resource for the Community

In his interview with the Los Angeles Times, delivery driver Victor Barrios relayed a widespread concern.

A well-lit grocery store aisle lined with assorted boxed goods and a refrigerated section in the background displaying dairy products, with signage indicating product categories overhead

Source: Franki Chamaki/Unsplash

He said, “This needs to stay open. I make OK money, and buying here helps me. But imagine if you’re on WIC? If you’re on Social Security? You need a place like this. Are people now supposed to go to Ralphs? Or Target? With what money?”

CEO Addresses the Closures

Interim CEO Mike Simoncic addressed the closures, acknowledging, “This was an extremely difficult decision and is not the outcome we expected or hoped to achieve.”

An image showing the front entrance of a 99 Cents Only Store. The store's sign, with large "99¢" in bold blue numbers against a pink circular background, is prominently displayed above the entrance

Source: Wikimedia Commons

He pointed out that evolving economic and retail challenges necessitated a comprehensive reevaluation of their strategy.

No Stone Left Unturned

The company dedicated months to exploring every conceivable alternative to stave off closures.

A wide shot of a 99 Cents Only Store located on a street corner. The store's blue and white facade is shown, with a large billboard for 'Yellowjackets' visible above it. The intersection has traffic lights and a clear blue sky above

Source: Wikimedia Commons

Despite exhaustive efforts, they found no viable solutions, leading to the strategic decision to orderly wind down operations to maximize asset value.

A Confluence of Challenges

Simoncic explained that the company faced numerous obstacles, including the severe impacts of the COVID-19 pandemic, relentless inflation, and shifts in consumer preferences.

A woman wearing a blue jacket and a surgical mask is reaching for a product on a supermarket shelf. She is looking at the products with focus

Source: Imants Kaziļuns/Unsplash

These challenges collectively have compromised the financial stability and operational capabilities of the stores.

A Specific Farewell

The Los Angeles Times reported that the Main Street location is scheduled to close in June, although a firm timeline for all locations remains unspecified.

A nighttime view of a 99 Cents Only Store. Brightly lit inside, the store's colorful window displays and neon signs are visible to passersby on the quiet street

Source: Wikimedia Commons

This store is particularly significant as it has been a key shopping venue for the community for many years.

Looking Ahead Amid Uncertainty

With the impending closures of 99 Cents Only Stores, many consumers are left speculating about future shopping destinations for affordable items.

A 99 Cents Only Store seen from its parking lot filled with various vehicles. Shoppers are visible entering and exiting the store, with the store's signature blue and green signage above the entrance

Source: Wikimedia Commons

The disappearance of these stores indicates a significant shift in the retail landscape, compelling those who relied on them to reconsider their future shopping strategies.