Written and Researched by Bill Read
June 2024
Retailer Update:
The Transformation of 99 Cents Only Stores
Overall, the bankruptcy sale of 99 Cents Only Stores has a ton of interest.
Our tracking shows 333 Leases up for sale; 180 have been taken.
Retail Specialists has been tracking retailers that have been backfilling space vacated by bankrupt retailers. The activity so far has been very strong. Former Bed, Bath and Beyond spaces and 99 Cents Only stores have received tremendous Leasing velocity since the stores closed.
99 Cents Only store is closing 344 locations in California, Nevada and Arizona. Dollar Tree has bid to acquire 170 of the locations, Ollie’s Bargain Basement has acquired 8 and Burlington Stores has acquired two of the spaces.
170
Dollar Tree
8
Ollie’s
2
Burlington
Bed, Bath and Beyond locations have also been re-leasing at an incredible pace. We tracked over 40 percent of the vacant spaces have new stores opening in them. The list included Burlington, Nordstrom Rack, Barnes and Noble, Macys, Michael’s, and ALDI. Apparel led the way taking 103 of the spaces, followed by Furniture and Home Décor stores taking another 48 locations.
In summary, retail space vacated by retailers closing has been filling rapidly. This reflects the demand for good locations and retailers realizing that availability in good locations is constrained in today’s market
99 Cents Only Store Closures
Overview
99 Cents Only Stores, a well-known discount retail chain, has recently announced its decision to wind down its business operations. Here are the key details:
- Commencement of Wind-Down: The company plans to wind down its operations in an orderly manner. To facilitate this process, they have agreed with Hilco Global to liquidate all company-owned merchandise and dispose of certain fixtures, furnishings, and equipment at their 371 store locations. Sales under this agreement are expected to begin on April 5, 20241.
- Real Estate Assets: Hilco Real Estate (HRE) is managing the sale of the company’s real estate assets, both owned and leased, in Arizona, California, Nevada, and Texas1.
- Challenges Faced: The decision to wind down was driven by several factors, including the impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, inflationary pressures, and other macroeconomic headwinds. Despite efforts to explore alternatives, the company determined that an orderly wind-down was necessary to maximize the value of its assets1.
- Company Background: Founded in 1982, 99 Cents Only Stores currently operates nearly 371 stores across California, Texas, Arizona, and Nevada. They offer a broad assortment of name-brand and attractively priced merchandise, along with compelling seasonal product offerings1.
99 Cents Only Stores
Lease Tracking
Reporting on Bill Read’s Retailer Update
CBS News-LA :: Dozens of 99 Cents Only stores in Southern California will reopen as Dollar Tree
The Virginia-based company did not release a list of the specific stores bought. But Bill Read, a commercial real estate expert with the firm Retail Specialists, compiled a list of all the individual locations acquired by Dollar Tree.
The list includes more than 70 stores in Southern California in cities such as Canoga Park, Glendale, Garden Grove, Downey, Port Hueneme, Ventura, Long Beach, Ontario, San Diego, Riverside, Lancaster, Norwalk, Valencia, Tustin and Simi Valley.
CBS News
Wall Street Journal :: Bankruptcies Have Left More Stores Vacant, but the Space Doesn’t Sit Empty for Long
LA Times :: Some closed 99 Cents Only locations will reopen as Dollar Tree
The Sun :: Dollar Tree lines up to buy 93 shuttered 99 Cents Only stores in California
The Read Report and Retailer Updates
by Bill Read
About Retail Specialists
Retail Specialists, LLC is the premier retail real estate services firm in the south. We are committed to long-term relationships in property management, retail representation, development, leasing, and brokerage. Founded in 2005, we’ve thrived through tough times and shine under pressure. A unique mix of experience, technology, and data have proven successful in a business we love.
