Discount retailer plans to shutter around 100 stores in the upcoming year
Dollar General has recently released its fourth-quarter sales figures, which exceeded earlier estimates. The company is currently in the process of evaluating its store portfolio and has announced plans to close approximately 96 stores in the first quarter of the 2025 fiscal year. While the specific locations slated for closure have not been disclosed, reports indicate that many of the targeted stores are situated in urban areas and have encountered operational challenges.
Additionally, Dollar General intends to shut down 45 Popshelf stores and convert six existing Popshelf locations into Dollar General stores during the same period, resulting in a remaining count of 180 Popshelf stores. The decision to close these stores follows a comprehensive review of the company’s real estate holdings in 2024, focusing on factors such as store performance and overall viability.
Todd Vasos, Dollar General’s CEO, emphasized the necessity of this review process in fortifying the business’s foundational structure, particularly in light of the significant strides made during fiscal year 2024 in implementing the company’s Back to Basics initiatives. Despite the closures, Dollar General remains committed to executing approximately 4,885 real estate projects throughout fiscal year 2025.
These projects encompass the opening of 575 new stores across the United States and roughly 15 in Mexico, as well as the renovation of around 2,000 stores and the upgrade of 2,250 stores through Project Elevate. Furthermore, the company plans to relocate approximately 45 stores in the coming year. Dollar General’s financial performance in the fourth quarter reflected a 4.5% increase in net sales, reaching $10.30 billion, surpassing earlier projections of $10.26 billion.
Vasos expressed satisfaction with the business’s overall performance during the fourth quarter, citing improved operational execution and strong revenue growth. Currently, Dollar General oversees a total of 20,594 stores under various banners, including Dollar General, DG Market, DGX, and Popshelf outlets.
As the company embarks on its strategy for fiscal year 2025, it remains focused on expanding its presence in key markets through new store openings, strategic remodels, and store relocations. Despite the closure of some underperforming locations, Dollar General’s proactive approach to optimizing its store portfolio signals a long-term commitment to enhancing operational efficiency and driving sustained growth.
