Dollar General to close almost 100 stores in 2025: Reason, locations, and more details explored

Dollar General will close 96 of its stores and 45 pOpshelf locations in early 2025, as announced by the company in its Q4 2024 earnings report. The decision follows a review of store performance, operating conditions, and future viability.

CEO Todd Vasos stated the closures represent less than 1% of Dollar General’s 20,000+ stores but aim to strengthen the brand’s ability to serve customers. Additionally, six pOpshelf stores will convert to Dollar General (DG) outlets.

The move comes amid declining net income (-32.3% in fiscal year 2024) and broader retail challenges, including inflation and shifting consumer spending. DG joins retailers like Walgreens and Kohl's in reducing its footprint during a turbulent period for the industry.

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Dollar General cites financial performance and market conditions as reasons for closure

From Expansion to Contraction: A Strategic Shift for DG (Image via Getty)

DG’s net income fell to $1.1 billion in fiscal 2024, down by 32.3% from fiscal 2023 ($1.7 billion). The closures aim to optimize underperforming locations, particularly those struggling with profitability amid rising operational costs and cooled consumer demand.

Vasos emphasized the closures would strengthen the business' foundation. In the Q4 2024 earnings report, he said:

"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."

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141 stores to close across two brands

45 pOpshelf stores to close as well amidst the DG closures (Image via Instagram/@popshelf)

The 2025 closures include:

• 96 DG stores: Affecting 48 states (excluding Alaska and Hawaii).
• 45 pOpshelf stores: Representing ~20% of the pOpshelf chain’s 220+ locations.

Additionally, six pOpshelf stores will convert to Dollar General outlets. The company has not released specific closure locations, though states with pOpshelf presence (including Tennessee, Texas, and Florida) may see impacts. According to the Q4 2024 earnings report published on March 13, 2025, it says:

"The Company plans to close 96 Dollar General stores and 45 pOpshelf stores, and convert an additional six pOpshelf stores to Dollar General stores in the first quarter of the 52-week fiscal year ending January 30, 2026 ('fiscal 2025')."

The discount store chain currently employs over 194,000 workers but has not detailed how closures will affect staff. The company typically offers transfers or severance in such cases, though no official plan has been shared.

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The retailer's future plans amid industry challenges

Walgreens closed more than 150 stores in the US last year (Image via Getty)

The retailer’s decision aligns with a wave of 2025 retail closures, including Joann’s bankruptcy and Walgreens’ 150+ store cuts. Factors like inflation, reduced discretionary spending, and post-pandemic market shifts have pressured discount retailers. Despite this, DG plans to open 575 new stores by the end of 2025.

In fiscal 2025, the company aims to implement around 4,885 real estate projects. This includes the opening of 575 new stores in the US and up to 15 new stores in Mexico. Moreover, they also plan to fully remodel around 2,000 stores and relocate around 45 stores.

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Dollar General’s store closures reflect strategic adjustments to sustain profitability in a volatile retail climate. While the cuts are minimal relative to its vast footprint, they underscore the current challenges faced by discount chains.

As the company balances closures with expansions, customers in affected areas may need to rely on nearby locations or alternative retailers.