WASHINGTON — Dollar General has announced plans to close 96 of its Dollar General stores and 45 pOpshelf stores in the first quarter of fiscal 2025, the company announced in an earnings report last week. Additionally, six pOpshelf stores will be converted into Dollar General stores.
The decision comes after a comprehensive “store portfolio optimization review,” in which the company assessed individual store performance, future expectations, and operating conditions.
In the earnings report, Dollar General’s CEO Todd Vasos explained that while the closures represent less than 1% of its overall store base, the store closings are a necessary step to strengthen the company’s foundation.
“As we look to build on the substantial progress we made on our Back to Basics work in fiscal 2024, we believe this review was appropriate to further strengthen the foundation of our business,” Vasos said in the report.
The closures will have a significant financial impact, as Dollar General reported $232 million in charges for the fourth quarter of fiscal 2024, leading to a negative impact of approximately $0.81 per share. This charge includes the costs of store closures and impairment charges related to pOpshelf stores.
Vasos also addressed the challenging economic environment impacting the company’s customers. “Our customers continue to report that their financial situation has worsened over the last year as they have been negatively impacted by ongoing inflation,” he said.
“Many of our customers report that they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities,” Vasos added.
Which Dollar General and pOpshelf stores are closing?
Dollar General has not yet released a list of specific locations for the planned closures this year. The company has more than 20,000 locations across the U.S., including stores in 48 states.