99 Cents Only suspends plan to exit Texas

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99 Cents Only Stores Inc. said today that it was putting a hold of up to six months on its plan to exit the Texas market after surprisingly strong January sales. But it did announce plans to close some of its Texas stores.

The City of Commerce-based retailer announced last year that it would pull out of Texas, leaving the company with locations in California, Arizona and Nevada.

But today, the discount chain said same-store sales in Texas had increased 8.6% during the four-week period ended Jan. 24, leading it to reevaluate its strategy in the state.

‘Although management is unsure how strongly the challenging economy may affect sales trends in Texas, it does believe 99 Cents Only Stores, similar to other value-focused consumer businesses such as Wal-Mart and McDonald’s, is well positioned to benefit from the recessionary economy,’ the company said in a statement.

Meanwhile, 99 Cents Only also said that its board decided to close about one-third of the company’s Texas stores by March 28.

-- Andrea Chang