99 Cents Only Stores said it will reconsider its plans to leave the Texas market as sales in the state have significantly improved in the last month, rejecting Chairman David Gold’s offer to buy the operations.
The City of Commerce-based discount chain said late Tuesday that will close a third of its Texas stores by its fiscal year end, March 28, but it will keep an eye on the performance of the remaining stores for up to six months. Depending on how the stores fare, 99 Cents Only Stores said it may reverse its September decision to exit the Texas market permanently. Gold, who had offered to buy the Texas stores, will help oversee the company’s operations during the decision-making process.
During the four-week period ended Jan. 24, the Texas stores’ same-store sales increased 8.6 percent compared with 0.8 percent during the five weeks ended Dec. 27.
As the economy has worsened, sales at 99 Cents Only Stores have picked up. Last month, the company announced its total sales had increased 8 percent and same-store sales increased 4.2 percent for the quarter ended Dec. 27.
The company is scheduled to announce its full third-quarter 2009 results Wednesday after markets close.
99 Cents Only Stores closed down 19 cents, or 2.3 percent, to $8.19 on the New York Stock Exchange.