Dollar General is making bold moves in 2025. The retail giant announced it will close 96 Dollar General stores and 45 pOpshelf locations in the coming weeks. But that’s not the whole story. The company also plans to open 725 new stores this year, showing confidence in its growth strategy despite industry headwinds.
Why Is Dollar General Closing Stores?
The closures are not due to a drop in sales. In fact, Dollar General recently reported a 5% increase in annual net sales, reaching $40.6 billion in fiscal 2024. The company also saw a 1.4% rise in comparable store sales.
CEO Todd Vasos said the decision follows a review of store performance and future potential. “We believe this decision better positions us to serve our customers and communities,” Vasos explained. The closures account for less than 1% of the company’s total store base, which exceeds 26,000 locations.
Six pOpshelf stores will convert into Dollar General locations. The rest will shut down completely.
What Is Happening With pOpshelf?
Launched in 2020, pOpshelf was designed to offer a higher-end experience. But the concept has struggled. The closure of 45 locations represents about 22% of pOpshelf’s footprint.
Still, Dollar General is not abandoning the brand. Executives say they plan to enhance the customer experience in remaining pOpshelf stores. The company sees long-term value in the format, even if short-term performance lags behind expectations.
How Does This Compare to Competitors?
Dollar General’s move comes as other major chains—including Dollar Tree, Red Lobster, and Macy’s—also adjust operations. Dollar Tree plans to shut down nearly 1,000 locations across its Dollar Tree and Family Dollar brands.
In contrast, Dollar General is betting on expansion, not contraction. While other retailers scale back, Dollar General aims to increase its market share in the competitive discount space.
Will Stores in Indiana Be Affected?
The company hasn’t released a list of which stores will close. Indiana has 388 Dollar General locations and seven pOpshelf stores in cities like Fort Wayne, Kokomo, and Mishawaka. Customers can check the company’s website for updates.
Adapting to Changing Consumer Behavior
Dollar General is also embracing e-commerce and home delivery. Through a new partnership with DoorDash, the company will offer deliveries from more than 16,000 stores. The rollout begins with 400 stores and will grow to 10,000 later this year.
In addition, Dollar General plans to invest in new distribution centers to boost supply chain efficiency.
What’s Next for Dollar General?
Despite the closures, the company expects to see continued growth in 2025. Forecasts show projected net sales rising between 3.4% and 4.4%, with comparable store sales up 1.2% to 2.2%.
Dollar General faces tough competition from Amazon and other digital retailers. Still, the company remains focused on customer service, store expansion, and digital innovation.
By closing underperforming stores and opening hundreds more, Dollar General aims to stay ahead in a rapidly changing retail landscape.
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