Fallas Discount Stores

Fallas Discount Stores has been part of the American discount retail landscape since 1962, when Michael Fallas opened the first store. The company operates under National Stores Inc., which has managed several value-focused retail banners over the years. Fallas built its reputation by offering deeply discounted apparel, home goods, and seasonal merchandise, serving budget-conscious families in both urban and suburban communities.

The company experienced significant growth in the early 2000s, highlighted by the acquisition of Factory 2-U in 2004. This move expanded Fallas’s reach throughout the western United States and helped establish it as a prominent off-price retailer, particularly in California, Texas, and neighboring states. At its peak, Fallas operated more than 350 stores across 22 states.

In August 2018, National Stores Inc. filed for Chapter 11 bankruptcy, which led to the closure of over 100 Fallas locations and a major operational restructuring. Since then, Fallas Discount Stores has focused on stabilizing its business and strengthening its presence in core markets. As of November 2025, the company operates approximately 100 stores, primarily concentrated in California and Texas. While Fallas is not actively expanding, it continues to evaluate select opportunities in regions where its brand remains strong and operational efficiencies are well established.

Today, Fallas Discount Stores remains a familiar anchor in neighborhood shopping centers, drawing steady foot traffic with its broad selection of affordable merchandise. The company’s longstanding presence and focus on value-driven retail make it a reliable tenant for property owners seeking stability and consistent community appeal. Over the past five years, Fallas has shifted from aggressive expansion to a more measured approach, prioritizing operational health and maintaining its established footprint in its strongest markets. The company continues to operate under National Stores Inc. and does not franchise its locations.