As 99 Cents Only stores shutter across nation, Dollar Tree is set to raise its costs

Bargain shopping is about to get a lot more expensive.

On Thursday, 99 Cents Only Stores LLC, which runs 371 shops throughout the country, announced it would be "winding down" its company, closing every one of its stores over the coming months.

The business, which employs around 1,4000 people, cited monetary obstacles it states were produced by the pandemic, inflation and changing customer shopping habits.

The business said it will liquidate all of its merchandise and get rid of particular home furnishings, fixtures and devices at the stores

" This was an incredibly hard decision and is not the result we expected or hoped to achieve," stated the business's interim CEO Mike Simoncic.

The announcement comes just weeks after news broke that another significant retailer in the dollar (give or take) market would be increasing its costs on a lot of its items.

Here are some alternatives to 99 Cents Only stores.

In March, Dollar Tree, the second-largest merchant in the space behind only Dollar General, said it would be increasing the max rates on its items to as high as $7.

" This year, throughout 3,000 shops, we anticipate to broaden our multi-price selection by over 300 items at cost points ranging from $1.50 to $7," CEO Rick Dreiling said in March 13 revenues call.

Food, family pet supplies and individual care products will be among the items to get a price increase, although the rising prices will not use to whatever. Dreiling stated the "vast bulk" or items sold in Dollar Tree stores will stay at its "entry-level fixed price point."

As the price climbs on a lot of its products, consumers still should not get comfy with spending no greater than $7 on items. Dreiling says the business plans to eventually have products in its stores that cost as much as $10, although an exact timeline is uncertain.

A Family Dollar range store is envisioned in Canton, Mississippi on Nov. 12, 2020. (AP).

Dollar Tree likewise owns the Family Dollar brand, which it acquired in 2015 after outbidding its main competing Dollar General, according to the Associated Press.

While buyers of Dollar Tree have accepted the multi-price point model that has offered a positive boost for the company, Family Dollar, is having a hard time.

" Persistent inflation and minimized federal government benefits continue to press the lower-income customers that consist of a large part of Family Dollar's customer base," Dreiling stated.

Dollar Tree will be closing 600 shops under the Family Dollar brand name in the first half of this year and an additional 370 in the coming years. Thirty Dollar Tree stores will also eventually get the axe.

The expense of closing or rebranding those shops is approximated to be around $600 million, according to Dollar Tree Chief Financial Officer Jeff Davis.

For customers who have actually recalibrated their shopping practices due to inflation and other monetary obstacles, the closure of 99 Cents Only shops and Family Dollar stores, in addition to increasing prices at Dollar Tree, indicates it may just be even more difficult to save a couple of dollars on the basics.

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