Most CA 99 Cents Only Stores To Reopen As Dollar Trees

CALIFORNIA — Shuttered 99 Cents Only Stores across California could soon reopen doors as Dollar Trees.

Dollar Tree executives Wednesday announced the company acquired designation rights for 170 leases of 99 Cents Only Stores, more than half of which are located throughout the Golden State.

This announcement comes after the California-based 99 Cents Only Stores announced it would permanently close all 371 stores and file for bankruptcy in April. Company executives said the business struggled to stay afloat following the COVID-19 pandemic and also cited shifting demand and rising theft among the reasons to close.

"As we continue to execute on our accelerated growth strategy for the Dollar Tree brand, this was an attractive opportunity to secure leases in priority markets where we see strong profitable growth potential,” said Michael Creedon, Jr., Dollar Tree’s Chief Operating Officer.

Dollar Tree's acquisition of the new properties came as a surprise as its parent company announced it would close about 1,000 stores across the country in March. Rick Dreiling, chairman and CEO of Dollar Tree said inflation and reduced government benefits put pressure on lower-income customers, who comprise a large portion of the customer base.

Executive Vice President of real estate firm Retail Specialists Bill Read posted a list of 93 former 99 Cents Only locations that Dollar Tree successfully bid on. The majority of the stores on the list were in California from Sacramento to San Diego.

Dollar Tree didn't provide an official list of stores that will reopen.

“The portfolio complements our existing footprint and will provide us access to high-quality real estate assets in premium retail centers, enabling us to rapidly grow the Dollar Tree brand across the western United States, reaching even more customers and communities,” Creedon Jr. said.

Customers can expect doors to the rebranded stores to reopen as early as fall 2024, executives said.