The former president of Big Lots (formerly Pic ‘N’ Save) is putting together a group of investors to save the 99 Cents Only Store locations in California. On Friday, the stores’ operators began liquidation of the merchandise and fixtures at locations, and that will continue. But 90 days after the completion of the closures, the investors hope to do a grand reopening of the 143 California outlets with a return to the original vision of the bargain hunt, found treasure atmosphere.
While the ubiquitous bargain stores are going out of business and started to offer ” closeout sales on Friday, Mark J. Miller, former president of Big Lots and the original Pic ‘N’ Save brand, has put together a group of investors to save the 143 stores in Southern California.
It’s a passion for me to try and do this deal because I think it’s such an iconic brand name and has such a great feel for Southern California,” Miller explained in Los Angeles on Friday.
Miller said his group is hoping to move very fast to acquire the 143 stores. He said he would close the stores for about 90 days after the going-out-of-business sales and then win customers back by returning the shopping experience to the “treasure hunt” style that made 99 Cents Only and other bargain stores popular in the first place.
As the current chairman, president and CEO of Pic ‘N’ Save Bargains, Miller already has two stores in Anaheim and Whittier.
The team includes former 99 Cents Only Store executives who will build their collective vision of refocusing on the experience of shopping rather than empire-building. Miller seems to understand the original vision for the store and what it means to the affected communities if the 99 Cents Only Stores cease to exist.
“This group of customers is priced out of other chains,” Miller said. “It stretches their buying power. Especially today. That’s why this is a passion for me.”
Bravo to Miller and this action by business owners who understand not just what it does to an economy to have such a mass wave of closures but to the community the business serves. The fact that these bargain discount stores are closing instead of expanding is a bad sign.
In March, the Dollar Tree corporation also announced it was closing 1,000 stores across its brand.
Dollar Tree announced it will close nearly 1,000 of its Family Dollar stores after the stores experienced a significant underperformance in 2023, according to the press release by the company.
During the fourth quarter of 2023, Dollar Tree underwent a review of its stores performance to identify locations to close, relocate or re-banner, the company said.
“As a result of this review, we plan on closing approximately 600 Family Dollar stores in the first half of fiscal 2024. Additionally, approximately 370 Family Dollar and 30 Dollar Tree stores will close over the next several years at the end of each store’s current lease term,” the company said in the press release.
Too often company press releases combine product loss or damage and actual theft under the innocuous term of “shrink.” But along with the rampant inflation, this “shrink” is a major factor in the locations of these stores that end up closing.
Retail security expert Matt Kelley told Fox News Digital that theft is one component, but that there are many implications when shrink occurs at dollar stores specifically.
“Oftentimes those dollar stores might only have one or two people in the building, so they’ve got limited resources by way of being able to staff those stores,” he said. “So just that alone is a safety concern and when you think about shrink and theft and the things that are happening across the U.S, and maybe globally, the bad actors that are stealing from these places are becoming more and more brazen in their attempt to take things that they haven’t paid for and oftentimes those can get violent… so it’s goes beyond just profitability.”
Bottom line: the more marginal the neighborhood, the greater the shrink. The greater the shrink, the more likely the location will be shuttered.
While the potential reopening of these 99 Cents Only locations is a positive thing, California has a serious retail theft problem and laws that favor criminals rather than small business. They’ll need Miller and his team’s vision to reopen the stores, but they’ll also need to figure out how to improve community safety in order to protect their investment.
