Dollar General to Close 141 Stores in Early 2025

Dollar General recently made a significant announcement regarding the closure of 96 Dollar General stores and 45 pOpshelf stores in the first quarter of fiscal 2025. The company disclosed this information in its earnings report last week. In addition to these closures, six pOpshelf stores will be rebranded as Dollar General stores. This decision came as a result of a thorough assessment known as a “store portfolio optimization review” where individual store performance, expectations for the future, and operating conditions were evaluated.

Todd Vasos, the CEO of Dollar General, explained that these closures, although representing less than 1% of the total store base, are essential to fortifying the company’s structure. He highlighted the importance of this review in enhancing the company’s business foundation moving forward. The financial repercussions of these closures are significant, with Dollar General reporting a charge of $232 million for the fourth quarter of fiscal 2024, resulting in a negative impact of approximately $0.81 per share. This charge encompasses the expenses associated with store closures and impairment charges related to pOpshelf stores.

Vasos also acknowledged the challenges posed by the current economic environment on Dollar General’s customer base. Many customers have indicated a worsening financial situation in recent times due to ongoing inflation. The CEO stated that several customers are barely managing to afford basic essentials, with some having to make sacrifices even in purchasing necessities. While the company remains focused on its progress in the fiscal year 2024, the store closures are deemed a crucial step in adapting to the evolving economic landscape.

Dollar General has not disclosed specific locations slated for closure in the coming year. The retail giant has a widespread presence across the United States, with operations in 48 states and over 20,000 store locations. The impact of these closures is expected to shape Dollar General’s future operations and strategic directions, as the company aims to navigate through the challenges of the retail landscape and cater to the evolving needs of its customer base.