99 Cents Only to stay in Texas market

City of Commerce, Calif. 99 Cents Only Stores has canceled plans to exit the Texas market as more consumers buy discount items as a way to save money during the recession.

In September 2008, the company’s board announced a plan to pull out of the state, closing 48 stores and its distribution center in Katy. The decision came after years of posting unprofitable results in the state, and in the wake of Hurricane Ike.

However, since making this decision, 99? Only Stores has seen an improvement in sales across the state since earlier this year.

The company now plans to keep a total of 33 stores open in Texas and more than 1,000 employees across the state will keep their jobs.

In related news, 99 Cents Only Stores said it earned $9.5 million in its first quarter, compared with a loss of $1.5 million last year amid high food and energy prices.

For the quarter ended June 27, sales rose 9% to $332.1 million from $304.9 million last year. Meanwhile, same-store sales jumped 7%.