Feb. 4--Saying the recession is actually helping its sales, California-based 99 Cents Only Stores has decided not to pull out of Texas altogether, and will only close a third of its stores in the state for the time being.

In September, the discount retailer said it would close all of its 48 Texas stores, including 13 in the Metroplex, because of poor performance. Earlier this week, though, its board of directors voted to suspend the exit plan for at least six months while it reviews sales performance, which it says has "significantly improved."

It now will only close 16 stores in Texas before March 28, the company said. It did not release a list of those stores. It will also keep its Texas distribution center open.

In Tarrant County, 99 Cents Only has stores at 6732 Camp Bowie Blvd. in Fort Worth, 6246 Rufe Snow Drive in North Richland Hills, 3901 Colleyville Blvd. in Colleyville and 1200 N. Main St. in Euless.

The company has four stores in Dallas, two in Garland, and one each in Lewisville, Irving and Plano.

The company said its same-store sales in Texas increased 8.6 percent in January. That compares to an increase of less than 1 percent in the five-week period that ended Dec. 27, according to the company.

"In light of this significant improvement in sales results and the state of the economy, the board concluded it would be prudent to continue to observe sales and other financial results in Texas for a limited period before taking permanent action that would effectively close off any opportunity to continue the Texas operations," the company said. "Depending on future sales and other financial results in Texas, the board could permanently reverse its September decision."

On Saturday, the retailer's board of directors rejected an offer from its chairman, Dave Gold, to buy the Texas operations.

Last fall, 99 Cents Only Stores raised its prices almost a penny, to 99.99 cents, its first-ever increase since opening in 1982. The retailer has 230 stores in California, Arizona and Nevada.

SANDRA BAKER, 817-390-7727 SANDRA BAKER, 817-390-7727

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