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Sep 19, 2008 6:34 am US/Central
'99 Cents Only Stores' Closing Doors In Texas
NEW YORK (CBS 11 News / AP) ―
Discount retailer 99 Cents Only Stores says it will leave the Texas market, closing 48 stores because operations are unprofitable.
The company said it will focus on its 230 remaining stores, which are in California, Arizona and Nevada. Those stores bring approximately 90 percent of its total revenue. 99 Cents Only Stores said stores in the "very challenging" Texas market were generating about half the revenue of its stores in other states.
The company said its Texas stores lost $15 million, or 15 cents per share, in the year ended June 28, while bringing in $120 million in revenue. It said the closures will cost $40 million to $45 million.
On Sept. 8, 99 Cents Only Stores said it will raise prices for the first time ever, citing inflation. Prices will go to 99.99 cents, from 99 cents.
There is no word yet on when the Texas stores will shut their doors.
(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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