The Friday Checkout: The stars should be aligned for discounters, so what toppled 99 Cents Only Stores?

The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.

Stubborn inflation and ultra price-conscious consumers have created the perfect storm for discounters.

So far this year, Dollar General opened its 20,000th store, announced plans to open 800 locations in 2024 and brought fresh produce to more than 5,000 stores. Competitor Dollar Tree, though scaling back by shuttering nearly 1,000 of its Family Dollar units, is still building its grocery offerings to expand its customer reach.

But not all discounters are weathering the storm. 99 Cents Only, a California-based discounter, filed for bankruptcy on Sunday, days after announcing it would liquidate.

Like its competitors, 99 Cents Only sells food products, including fresh produce and snacks, and other essentials like cleaning supplies, beauty products and alcoholic beverages. However, its footprint is significantly smaller — with around 371 locations across Arizona, California, Nevada and Texas — which could have contributed to the discounter’s downfall.

99 Cents Only’s interim CEO Mike Simonic stated that the chain was hit hard by “lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds.”

Basket full of Dollar General's Clover Valley products — Retrieved from Dollar General.

In case you missed it

Giant Eagle’s new nest

The regional grocer opened its new headquarters in Cranberry, Pennsylvania, on Thursday after several months of renovations according to an emailed announcement. The new 100,000-square-foot space includes a gym, walking and jogging trails and a cafeteria for the 400 team members and community leaders who will work there.

The new office is located in the Cranberry Woods Business Park off of Interstate 79 and the Pennsylvania Turnpike.

Kroger starts Cinco de Mayo celebrations early

Ahead of the holiday, the grocer is launching a four-week Latin Flavors event, according to a Wednesday announcement. Kroger shoppers can expect to see a complete Latin flavor takeover in the grocer’s Murray’s cheese demos, opportunities for sampling Latin-themed meals intended to be easily replicable at home, and authentic products available both in-store and online.

Featured recipes include Yucatecan chicken tacos, empanadas with pork and potatoes, and garlic lime fajitas, while goods available for purchase includebakery fresh tres leches cake slices, Home Chef chicken and carne asada street taco kits and deli fresh guacamole and salsa.

Whole Foods Market reveals2023 Supplier All-Star winners

The specialty grocer on Wednesday singled out 16 brands that it said “exemplify excellence” through quality, innovation, value and sustainability. The Supplier All-Star Awards recipients were selected by Whole Foods leaders, category experts and merchants from across the retailer’s departments.

Exterior of a grocery store. — Courtesy of Whole Foods Market

Number of the week: 1.2%

That’s the rate at which grocery prices rose over the past 12 months — up from 1% in February — but still well below the annual rate of food-at-home inflation a year ago.