99 Cents Only Stores have recently announced the closure of all 371 of their stores located in California, Arizona, Nevada, and Texas.
Customers of the store are mourning the loss of this economic chain which sold produce, merchandise, and other goods at a reasonable price.
The shutdown of the company raises concerns of problems with the economy and whether an inexpensive alternative exists.
Los Angeles community members are struggling with how they will access affordable goods at big retail chains.
99 Cent store customer, Samuel Riviera, believes that the store closure will prevent access to cheap food for his community.
Riviera: It will affect a lot of people because most of the people that low econ they come and shop over here they find mostly everything over here. Food and groceries and whatever you need. It’s better to go over here instead of spending more money or other stores.
Customer and USC student Brian Johnson feels they are not enough stores selling low-cost goods like the 99 Cent Stores.
Johnson: But I feel like Ralph’s and like other stores are just their prices keep raising for just general groceries. So I feel like this was a really good option that we no longer have, unfortunately.
Mike Simonic, who will be stepping down as Interim Chief Executive Officer, released a statement in the company’s press release announcing why the company will be closing.
Simonic: 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.
Francisco Roman, Clinical Professor of Accounting at USC Marshall, believes the shutdown is due to several
Roman: There’s a profit motive, they are not in the business of being altruistic and altruistic organization and inflation is what basically drove them out of business combined or coupled with the pandemic.
Roman thinks that the closure will negatively affect customers.
Roman: A lot of people are going to suffer here in the LA community.
The closure of the 99 Cents Only Stores will impact LA residents and their access to quality, affordable goods in an economy of rising prices.
The statement was read by Dylan Brashier.