Dollar General just announced it’s closing down 96 stores across the U.S. in early 2025, along with 45 pOpshelf locations.
If that sounds like a red flag for the retail giant, you’re not alone in wondering what’s up. So, is this a sign of trouble, or just a business move? Here’s what we know.
Why Are Dollar General Stores Closing?
According to the company’s latest earnings report, they did an “appropriate” review of their store portfolio and decided to cut underperforming locations. CEO Todd Vasos downplayed the impact, saying these closures represent less than 1% of their total stores. But considering Dollar General has been aggressively expanding, this move raises eyebrows.
Is Dollar General Struggling?
Not exactly, but profits took a hit. Here’s the breakdown from their fiscal 2024 report:
- Net sales: Up 5% to $40.6 billion (so revenue is still growing).
- Same-store sales: Up 1.4%, mostly from increased foot traffic.
- Net income: Dropped 32.3% (from $1.7 billion in 2023 to $1.1 billion in 2024).
The company isn’t losing money, but the sharp profit decline suggests higher costs and tighter margins. While they’re still planning to open 575 new stores in 2025, this mix of closures and expansions shows they’re shifting gears.
Which Stores Are Closing?
Dollar General hasn’t released a full list of locations shutting down, so we don’t know yet if specific cities or states are more affected. However, they did confirm that six pOpshelf stores will be converted into regular Dollar General locations instead of closing completely.
Is This a Sign of Bigger Retail Problems?
Retail has been rough lately, just ask Family Dollar, Rite Aid, or Walgreens, all of which have been closing stores due to financial struggles. While Dollar General isn’t in crisis mode, they might be feeling pressure from inflation, supply chain costs, and changing shopping habits. The discount store model thrives when shoppers feel squeezed for cash, but even budget retailers aren’t immune to higher costs.
Should Shoppers Be Worried?
For now, Dollar General is still expanding more than it’s contracting. If you rely on one for groceries or essentials, chances are your local store isn’t going anywhere. But with profitability slipping, it’s clear that even retail giants are feeling the heat. Keep an eye on store announcements, if closures hit your area, it might be time to find an alternative discount store nearby.
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