(WHTM) — Dollar General is the latest company to announce plans to close dozens of locations in 2025 amid struggling consumer confidence.
Company officials revealed in last week’s fourth quarter and fiscal year 2024 report that they plan on closing 96 Dollar General store locations “in the first quarter” of the current fiscal year.
Also expected to close are 45 of Dollar General’s home decor stores, pOpshelf. Six pOpshelf locations will be converted into Dollar General locations.
The decision came after a “store portfolio optimization review…which involved identifying stores for closure or re-bannering based on an evaluation of individual store performance, expected future performance, and operating conditions, among other factors.”
It is still not known where these shuttering stores are located or when exactly they will close down.
“As we look to build on the substantial progress we made on our Back to Basics work in fiscal 2024, we believe this review was appropriate to further strengthen the foundation of our business,” Todd Vasos, Dollar General’s chief executive officer, said. “While the number of closings represents less than one percent of our overall store base, we believe this decision better positions us to serve our customers and communities.”
Dollar General reported its fourth-quarter operating profit decreased by 49.2% to $294.2 million. Even with these decreases, the company saw fourth-quarter net sales increase 4.5% to $10.3 billion and a fiscal year net sales increase of 5%.
“We were pleased with the underlying performance of the business in the fourth quarter, including improved execution and solid top-line results,” Vasos added. “As we reflect on our full fiscal 2024 year, we believe our Back to Basics work is resonating with customers, as demonstrated by higher customer satisfaction scores and healthy market share gains.”
Dollar General isn’t the first retailer to anticipate a footprint reduction in 2025.
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Denny’s shared in February that it would close dozens more locations this year after announcing in October that 150 of its restaurants would close. About half of those closures occurred in 2024 with the rest set for 2025. Macy’s and Kohl’s have also unveiled plans to shutter several locations.
Other companies have filed for or are reportedly considering bankruptcy, leading to hundreds of closures.
JOANN, the fabric and crafting store, filed for bankruptcy protection in January and now intends to close all of its nearly 800 stores in the coming months. Discount retailer Big Lots is continuing through its bankruptcy process but some of its shuttered storefronts have already been picked up by other retailers.
Several former Party City locations, which closed after the company announced in December that it was going out of business “immediately,” are also in line to get a new life. Court filings show another dollar chain, Dollar Tree, entered winning bids for nearly 150 former Party City locations.
Last month, reports indicated casual dining chain Hooters may soon file for bankruptcy protection to restructure.
