Dollar General Is Closing Over 100 Stores in the Coming Weeks

Dollar General is closing 96 stores sometime in the first quarter of fiscal year 2025. Another 45 stores under the pOpshelf brand will also be shuttered, with an additional six being converted into Dollar General locations.

Dollar General quietly announced the store closings in its latest earnings report released on March 13. During the three-month period that ended on Jan. 31, the discount chain conducted an “appropriate” evaluation of its store portfolio to determine current and future performance as well as operating conditions.

“While the number of closings represents less than one percent of our overall store base, we believe this decision better positions us to serve our customers and communities,” noted CEO Todd Vasos in the earnings statement.

The exact locations of Dollar General stores on the chopping block have not yet been announced. According to company leadership, the closings are necessary “to further strengthen the foundation of [the] business.”

In January, prior to the most recent announcement, Dollar General closed 27 stores. At the time, the company predicted it would open 575 new stores in the U.S. during 2025, but now it is unclear whether that is still on the table.

Dollar General Earnings and Economic Outlook

In the fourth quarter of fiscal year 2024, Dollar General’s revenue grew 4.5% to $10.3 billion. For the entire year, the company brought in $40.61 billion, a 5% jump compared to 2023’s $38.69 billion.

Same-store sales, which measures revenue from stores open at least a year, climbed 1.2% in Q4 2024. Net income from the quarter reached $191 million, down from $402 million reported in the same quarter for 2023.

During a conference call, Vasos expressed concern over the worsening economic conditions of the discount retailer’s central customers. To effectively compete and drive store traffic, Dollar General must provide value and convenience “more than ever.”

“Many of our customers report they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities,” said Vasos, per CNBC. “As we enter 2025, we are not anticipating improvement in the macro environment, particularly for our core customer.”