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Dollar General has announced plans to close nearly 100 locations as part of a broader strategy to streamline its operations in 2025.

This includes the closure of 96 Dollar General stores and 45 locations of its home decor brand, pOpshelf. Six of these pOpshelf stores will be converted into regular Dollar General outlets.

This decision follows a "store portfolio optimization review," in which the company evaluated each store's performance, future potential, and other factors.

The company aims to strengthen its foundation and improve overall profitability despite the closures, which represent less than 1% of its total store base.

Todd Vasos, CEO of Dollar General, commented, "We believe this review was appropriate to further strengthen the foundation of our business." While the specific locations and closure dates have not been disclosed, the company's actions reflect its ongoing effort to adjust to changing market conditions.

Despite the store closures, Dollar General reported strong financial results for the fourth quarter of fiscal 2024.

The company's revenue increased by 4.5% year-over-year, reaching $10.3 billion. This was slightly above market expectations.

Additionally, Dollar General surpassed $40 billion in annual sales for the first time, signaling continued growth even amid operational challenges, Franknez said.

Dollar General to Close Stores as Part of Streamlining Strategy

According to Wane, the closures are part of a broader trend in the retail industry, where other companies like Denny's, Macy's, and Kohl's have also announced plans to reduce their store footprints.

Additionally, businesses such as JOANN and Big Lots are navigating bankruptcy, leading to more store closures across the sector.

Dollar General's decision to close underperforming locations comes as it seeks to better serve its customers and communities.

While the closures will impact certain areas, the company remains focused on optimizing its store portfolio to improve its competitive position in the discount retail market.

The closures, particularly in urban areas, could affect local economies by reducing access to affordable goods and services.

Many of these stores provide essential items to budget-conscious shoppers, and their absence may result in longer travel distances for some customers. Additionally, job losses in communities reliant on these stores are possible.

Dollar General's response to changing consumer behaviors, such as the rise of e-commerce, is also evident in its efforts to adapt its store operations. The company plans to enhance its in-store experience and integrate more digital solutions to engage customers effectively.