It feels like you can’t drive five miles in any direction without seeing that familiar yellow sign. Dollar General is basically the wallpaper of rural America. But lately, things have been a little rocky for the discount giant. If you’ve been hearing rumors that your local spot might be locking its doors for good, you aren't imagining things. Dollar General is closing nearly 100 stores across the country as part of a massive "portfolio optimization" strategy that’s shaking up the retail landscape in 2026.
Honestly, it’s a weird time for the company. On one hand, they are opening hundreds of new locations. On the other, they’re hacking away at underperforming ones. It’s a classic "trim the fat" move, but for the people who rely on these stores for milk, bread, and cheap toilet paper, it feels like a lot more than just a line item on a balance sheet.
Why the sudden pivot?
So, why is Dollar General is closing nearly 100 stores across the country? It basically comes down to a "Back to Basics" plan spearheaded by CEO Todd Vasos. During recent earnings calls, the message was pretty clear: some stores just aren't pulling their weight. Specifically, 96 namesake Dollar General locations were put on the chopping block, along with dozens of their "pOpshelf" experimental stores.
The company isn't just closing them for the sake of it. They looked at a few specific things:
- Individual store performance: Is the store actually making money?
- Operating conditions: Is the neighborhood still a good fit?
- Future outlook: Does the lease make sense for the next decade?
Most of these shuttered locations are in urban or metro areas. Vasos was pretty blunt about it, noting that these spots have become "increasingly challenging" to operate profitably. If you’ve followed the news lately, you know what that’s code for: rising labor costs, high rent, and the persistent headache of retail "shrink"—which is just the corporate way of saying shoplifting and internal theft.
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In rural towns, Dollar General is often the only game in town. In the city? They’re competing with everyone from Walmart to the corner bodega. It turns out, when the competition is stiff and the overhead is high, that $1 price point (or $1.25, let's be real) doesn't leave much room for error.
The pOpshelf experiment is cooling off
If you haven't seen a pOpshelf yet, it’s basically Dollar General’s attempt to be "fancy." It targets suburban shoppers with home decor, seasonal items, and party supplies. Think of it as a Five Below or a Target Dollar Spot on steroids. But as part of this store-clearing marathon, 45 pOpshelf locations are being shuttered. Six of them are even being converted back into standard Dollar General stores.
It’s a bit of a reality check. While the company wanted to snag that suburban mom demographic, the core of their business has always been the low-income shopper. When inflation hits, the person making $45,000 a year stops buying "cute" seasonal pillows at pOpshelf and starts focusing on survival at the main store.
It's a numbers game (and the numbers are big)
Let’s talk money. This isn't a small clerical error. Closing these stores and cleaning up the books cost the company roughly $232 million in charges. That’s a massive hit to the quarterly profit.
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However, don't think for a second that Dollar General is dying. It’s actually the opposite. While they are closing nearly 100 stores, they have plans to open about 575 new stores this year. They are also remodeling thousands of others to add more "DG Fresh" coolers and better layouts. They’re basically trading 100 "okay" locations for 500+ "great" ones. It’s a ruthless growth strategy that prioritizes high-margin rural markets over the logistical nightmares of the big city.
The human cost of a "Store Optimization"
For a Wall Street analyst, 100 stores is "less than one percent" of the total footprint. For a family in a "food desert," it's a catastrophe.
In many small communities, the local DG isn't just a store; it’s the grocery store, the pharmacy, and the hardware store rolled into one. When a location closes, it often leaves a void that nobody else wants to fill. Critics have long argued that dollar stores actually cause this problem by driving out independent grocers, only to leave when the profit margins dip. It’s a cycle that leaves vulnerable populations with fewer choices.
What happens next?
If your local store is on the list, you’ve probably seen the "Store Closing" signs by now. They don't usually stay open long once the decision is made. Most of these closures are happening in the first half of the 2025-2026 fiscal cycle.
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What should you do if your go-to shop is disappearing?
- Check the clearance: Closing stores usually means 50% to 75% off everything. It’s the best time to stock up on non-perishables.
- Look for the "DG Market" alternative: Sometimes they close a small, cramped store just to open a larger "Market" version a mile down the road with fresh produce.
- App Updates: Use the Dollar General app to see where the nearest relocated or remodeled store is. The company is heavily pushing their digital tools to keep customers even when the physical building moves.
Actionable Next Steps
If you are worried about your local Dollar General is closing nearly 100 stores across the country, here is exactly what you need to do to stay ahead of the curve.
First, check the lease expiration. Most of these "targeted" closures are happening at the end of a lease term. If you see your store hasn't been remodeled in years and the parking lot is a mess, it’s a prime candidate. Second, watch the inventory. When they stop restocking the big-name brands or the "seasonal" aisle stays empty for weeks, that’s a red flag that the store is being phased out. Finally, pivot to the DG app. The company is moving toward a more digital-heavy "loyalty" model. Even if your local store closes, the coupons and "digital hits" will often guide you to the next nearest location that isn't on the chopping block.
Retail is changing, and the "dollar store" isn't immune to the same pressures hitting Macy's or Walgreens. It’s a survival of the fittest out there, and right now, Dollar General is choosing to be lean rather than large.