GOODLETTSVILLE, Tennesse – Dollar General has announced plans to close 96 of its stores and 45 pOpshelf locations across the country during the first quarter of 2025. The decision, aimed at optimizing store performance, coincides with the company’s release of its fourth-quarter earnings report, which revealed shrinking profits despite higher overall sales.

While specific store locations slated for closure have not been disclosed, the company stated that underperforming outlets would be most impacted. Additionally, six pOpshelf locations will transition into traditional Dollar General stores.

Facing Financial Hurdles

The store closures reflect the broader financial challenges facing Dollar General. According to its earnings report, the company experienced:

  • A 49.2% drop in operating profit during the fourth quarter.
  • A 52.5% plunge in quarterly earnings per share (EPS), falling from $1.83 to $0.87.
  • A 29.9% decline in full-year operating profit, which now stands at $1.7 billion.

Despite these setbacks, fourth-quarter net sales rose by 4.5%, reaching $10.3 billion, and full-year net sales climbed 5% to $40.6 billion. However, rising operational costs, increased inventory markdowns, and economic strain on lower-income customers have weighed heavily on profitability.

CEO Offers Reassurance Amid Uncertainty

Dollar General CEO Todd Vasos emphasized the company’s dedication to serving its customers despite the financial headwinds. “We remain focused on delivering value and convenience as we navigate this challenging economic environment,” he said.

The closures come at a time when other budget retailers, such as Dollar Tree and Family Dollar, are grappling with rising costs and evolving consumer spending habits. Despite the hurdles, Dollar General remains committed to its long-term growth strategy, with plans to open 575 new stores across the United States and up to 15 locations in Mexico this year.

What’s Next for Shoppers?

While some communities may see their local Dollar General close its doors, others could benefit from new or renovated stores. Dollar General anticipates modest growth in 2025, with projected net sales increasing by 3.4% to 4.4% and same-store sales expected to grow 1.2% to 2.2%.

The evolving retail landscape highlights the challenges discount stores face in balancing affordability with rising operational demands. For customers, the closures signal changes in their shopping options, as the industry adapts to meet shifting economic realities.