It feels like every time you turn a corner in a rural town, there’s a yellow and black sign staring back at you. For years, Dollar General seemed invincible. While other retailers were shrinking or going completely digital, they were planting flags in every patch of dirt they could find. But the wind is shifting. Recently, the news hit that Dollar General is closing nearly 100 stores in 2025, and honestly, it’s caught a lot of regular shoppers off guard.
When you hear a massive chain is shutting doors, your brain usually goes straight to "bankruptcy." We’ve seen it with Rite Aid and Bed Bath & Beyond. But this isn't that. This is something called "portfolio optimization," which is basically corporate-speak for admitting some locations just aren't pulling their weight.
What’s Actually Happening with the 2025 Closures?
The company isn't going anywhere, but they are getting pickier. Specifically, they've targeted 96 Dollar General locations and 45 pOpshelf stores for closure in the first quarter of fiscal 2025. If you haven't seen a pOpshelf yet, it’s their "fancy" version of a dollar store—think home decor and $5 treasures. Apparently, that experiment hit a bit of a snag.
CEO Todd Vasos hasn't been shy about the reasoning. During an earnings call, he pointed out that these specific stores—many of them in dense urban areas—have become "increasingly challenging to successfully operate."
It’s a weird contrast.
On one hand, they are axing nearly 100 underperformers. On the other, they are still planning to open over 500 new stores this year. It’s like they’re pruning a bush to make the rest of it grow faster. They also took a massive $232 million hit in charges just to get these closures off the books. That’s a lot of money to spend just to stop spending money.
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Why Urban Stores are Taking the Hit
The "rural hero" strategy worked for Dollar General because they were often the only game in town. In a small village, you go there because you have to. In a city? You have options. You have Target, Walmart, and a dozen local convenience stores.
Experts like Neil Saunders from GlobalData have noted that in urban settings, the competition is just too fierce. The "captive audience" isn't there. Plus, there’s the issue of "shrink"—which is just a nice way of saying shoplifting and internal theft. While it’s a problem everywhere, it’s been particularly brutal for discount retailers in metro areas lately.
The pOpshelf Problem
The closure of 45 pOpshelf locations is probably the most telling part of this 2025 strategy. When the brand launched in 2020, the goal was to capture the "middle-class treasure hunter" demographic. But as inflation squeezed everyone’s wallets, people stopped hunting for $5 cute candles and started hunting for $1.50 cans of beans.
- 45 stores are closing entirely.
- 6 stores are being converted back into standard Dollar Generals.
- The remaining 180 or so locations are on a "wait and see" watch.
Basically, the company is realizing that in this economy, "essentials" win over "extras" every single time.
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Where Are the Stores Closing?
This is the frustrating part: there isn't a master list. Dollar General is notorious for keeping their closure lists close to the vest until the "Going Out of Business" signs actually hit the windows. However, we do know a few things about where the axe is falling.
- Urban/Metro Locations: If your local DG is in a high-traffic city center with high rent, it’s on the list.
- Texas and Virginia: Reports have already surfaced of pOpshelf closures in San Antonio (like the ones on Austin Highway and La Cantera Parkway).
- Pennsylvania and Indiana: Local news outlets in these states have been alerted that underperforming stores are being reviewed, though specific addresses haven't been confirmed yet.
If you’re worried about your local spot, look at the shelves. Stores slated for closure usually stop receiving new shipments of seasonal items first. If the "Back to School" section looks like a ghost town in July, that’s a red flag.
Looking Forward: Is Your Dollar Store Safe?
If you live in a town of 2,000 people and the nearest Walmart is 30 minutes away, you’re fine. In fact, Dollar General is doubling down on you. They are investing heavily in "Project Renovate," which is their plan to add more fresh produce and coolers to rural stores.
They know where their bread is buttered. It’s not in the city. It’s in the places where people need a gallon of milk and don't want to drive 20 miles to get it.
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The takeaway here isn't that the company is failing. It’s that they’re retreating to their home turf. They tried to play in the big leagues of urban retail and found out it’s expensive, messy, and hard to manage with their low-labor model. By cutting these 100 stores, they’re basically clearing out the "weeds" to focus on their 20,000 other locations.
Actionable Insights for Shoppers:
- Watch for Liquidation Sales: If you see a store in your area starting a "50% off everything" sale, that’s your window. These closures happen fast—often within weeks of the announcement.
- Check the App: The Dollar General app is usually the first place where store status changes. If your "preferred store" suddenly shows as "Information Unavailable," it might be on the chopping block.
- Look for DG Market Conversions: Many stores aren't closing; they’re being upgraded to "DG Market" formats with more food. If your store is getting a face-lift, it's a sign the company plans to stay for the long haul.
- Monitor pOpshelf Closures: If you have pOpshelf gift cards or rewards, use them now. With 22% of that brand's footprint disappearing, your local spot might not be there by the end of the year.