Dollar General Closing At Least 100 Stores
If you love heading down to your local Dollar General to score a deal or two, you might want to ask the manager if they’ll still be around in the coming months.
Recently, the company announced that nearly 100 stores will be closing this spring – leaving all those employees without jobs and local shoppers without their favorite store.
Why Are They Closing?
In what the company termed a “store portfolio optimization review,” they found that, even though fourth-quarter sales rose 4.5%, operating profits dropped by nearly 50%. The goal of this review was to identify stores for closure based on their individual performance, future performance, and operating conditions.
Despite the somewhat ominous news, Dollar General’s CEO, Todd Vasos, actually sounds optimistic. In a statement, he said their “Back to Basics” program is proving to be a success. It’s the company’s business model that focuses on three core values: drive operational excellence, better serve their customers, and create long-term value for their shareholders.
It appears the company is simply making some changes according to a long-term business plan because the chain intends to open 575 new stores in the U.S. and up to 15 in Mexico in 2025. They’re also investing in remodeling efforts in over 4,000 locations.
What Happens Next?
Presently, Dollar General operates over 20,000 stores across the nation. And, believe it or not, these closures only represent 1% of the company’s overall repertoire.
The company also operates a spinoff chain called pOpshelf – a place to shop for home decor. They, too, are facing closures – 45, to be exact. The goal behind pOpshelf was to “bring enjoyment back to shopping.”
At the moment, it remains to be seen which stores will close. So, actually, if you ask your local manager, he or she may not have an answer for you. But, the latest word is that the closures are set to begin in May of this year.
Shop While You Can
If you love stocking up on the essentials at Dollar General, you may want to start building a stockpile now. Also, the good news is, even if one Dollar General closes, there’s probably another one nearby.
Still, we’ll keep an eye on this story as it progresses. Be sure to keep coming back for more on this and other updates on our favorite retail chains.