What’s Next for 99 Cents Only Stores After Dollar Tree’s Big Move?
In a significant move for the discount retail market, Dollar Tree has announced the acquisition of leasing rights for 170 locations previously held by the bankrupt 99 Cents Only Stores.
This strategic acquisition spans key states including Arizona, California, Nevada, and Texas, with a notable concentration in Southern California. The acquisition marks a pivotal moment in Dollar Tree’s expansion strategy, aiming to bolster its presence in high-priority markets.
Dollar Tree’s acquisition was finalized through two transactions approved by the United States Bankruptcy Court for the District of Delaware.
Alongside the leasing rights, Dollar Tree also secured the North American Intellectual Property of 99 Cents Only Stores and selected on-site furniture, fixtures, and equipment. This comprehensive acquisition is poised to significantly enhance Dollar Tree’s market footprint across the western United States.
Michael Creedon Jr., the Chief Operating Officer of Dollar Tree, stressed how important this acquisition is.
He said that the new store locations will fit well with Dollar Tree’s current stores and give them access to top shopping areas. This will help Dollar Tree grow quickly, reach more customers, and expand into new communities with good chances for making money.
The acquired stores will be rebranded and reopened as Dollar Tree locations by fall 2024.
Dollar Tree aims to attract former 99 Cents Only customers with this change.
As part of Dollar Tree’s growth plan, the new stores will carry Dollar Tree products like party supplies and home goods, which are different from the groceries sold at 99 Cents Only Stores.
Dollar Tree is buying 170 stores from the bankrupt 99 Cents Only Stores even though it has its own challenges. Recently, Dollar Tree announced it will close almost 1,000 of its own stores over the next few years because of financial losses.
Despite these troubles, the company has managed to increase its profits by 4.3% this year compared to last year. By acquiring the 99 Cents Only stores, Dollar Tree aims to take advantage of good locations left vacant, strengthening its presence in the market.
The closure of 99 Cents Only Stores marks the end of an era for the deep-discount retailer, which operated for over four decades. The company, headquartered in Commerce, California, struggled with various economic challenges, including the COVID-19 pandemic, inflationary pressures, and shifting consumer demand. These factors culminated in the company’s bankruptcy filing in April 2024, leading to the closure of all 371 stores.
Some people are sad to see their local 99 Cents Only Stores close, while others are looking forward to the variety of products that Dollar Tree will offer.
Los Angeles Mayor Karen Bass acknowledged the impact of the closures on city residents and highlighted the availability of resources to support those affected. The local community’s response underscores the broader implications of retail consolidations on consumers, especially in economically challenging times.