99 cents stores to close

All 371 stores:

Ever hear of the rule of gravity? You can’t avoid it, you can’t break it, and you can’t change it. Same for various laws of physics, etc. Well, business also has an immutable rule - if it can’t produce a reasonable profit, it can’t exist [for long].

1 Like

The Captain

1 Like

Wonder why this happened? Dollar stores have traditionally cut portion size–ie shrinkage–to deal with rising costs. And some have broken the dollar rule raising prices to $1.25 or more.

There must be more to it than just profits. They could not find a way to beat the competition.

Ayup. Olson and Lafayette went out of business before Radio Shack.

1 Like

The great @mungofitch identified Dollar Tree as an undervalued stock back in 2021. Up a bunch since then.

1 Like

Dollar General has also done well with their only store in small town strategy. But inflation has caused customers to trim extras. That hurt margins and they missed on earnings.

I bought some anticipating recovery once they rejigger whats on the shelf. Its taking a while but seems to be on track.

An investor group is looking at buying some So Cal locations and reopening them.

https://lamag.com/news/investor-group-looks-to-save-the-99-cents-only-stores-in-southern-california

He’s currently pretty bullish on DG as well. Simple business, good margins.

When the PE group finished running Art Van into the ground, another PE group bought some of the stores, and reopened them as “Love’s Furniture”. The new PE group ran up a lot of debts, sucked the cash out of the company, and dumped the stores into BK a second time. The PE group blamed the failure on it’s vendors, like the logistics company that refused to keep delivering furniture for them without being paid.