42°
Dollar General will shut down at least 96 Dollar General locations and 45 pOpshelf stores in 2025, the company said in a news release on Thursday, Mar. 13. There are about 20,434 Dollar General stores and 231 pOpshelf locations, according to data company ScrapeHero.
Another six pOpshelf stores will be converted into Dollar General locations.
"As we look to build on the substantial progress we made on our Back to Basics work in fiscal [year] 2024, we believe this review was appropriate to further strengthen the foundation of our business," said CEO Todd Vasos. "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."
A pOpshelf store in Mishawaka, IN.
The decision follows a 49.2 percent decline in fourth-quarter operating profit, which dropped to $294.2 million. Dollar General said it accounted for $232 million in charges related to the store closures and losses by pOpshelf, which specializes in home goods, party supplies, and seasonal décor.
Dollar General also reported a 52.4 percent drop in fourth-quarter net income to $191.2 million. Customer traffic declined by 1.1 percent in the fourth quarter and the company struggled with higher markdowns, inventory losses, and distribution costs.
A Dollar General store in Folcroft, PA.
Despite lower profits, Dollar General's net sales increased 4.5 percent in the fourth quarter to $10.3 billion and rose 5.0 percent for the full fiscal year.
"We were pleased with the underlying performance of the business in the fourth quarter, including improved execution and solid top-line results," Vasos said. "As we reflect on our full fiscal 2024 year, we believe our Back to Basics work is resonating with customers, as demonstrated by higher customer satisfaction scores and healthy market share gains."
The bargain chain has also slowed its rapid expansion, planning to open 575 new stores in 2025, down from 725 new locations in 2024. The chain is focusing on brand partnerships and exclusive products to drive sales, including an expansion to Dolly Parton's kitchen and houseware collection after the country music star's product line successfully launched in July 2024.
The Goodlettsville, Tennessee-based company's closures come as brick-and-mortar retailers continue struggling with rising costs, President Donald Trump's constant tariff threats, and increasing competition from online sellers. Major retailers like Party City, Big Lots, and Joann have recently announced they would go out of business.
More than 7,000 stores closed in 2024, and analysts predict 15,000 closings in 2025.
Click here to follow Daily Voice Ringwood-Wanaque and receive free news updates.
