Dollar General Faces Mixed Earnings, Plans Store Closures as Inflation Strains Shoppers

The discount retailer reports higher sales but lower profits, with plans to close over 100 stores while expanding its footprint in 2025.

Dollar General reported a 4.5% revenue increase in Q4 2024 to $10.3 billion, surpassing sales expectations but falling short on profit due to store optimization costs.
The company plans to close 96 Dollar General stores and 45 Popshelf locations, representing less than 1% of its store base, while opening 575 new stores in 2025.
CEO Todd Vasos highlighted ongoing financial struggles for core customers, with many only able to afford basic necessities, exacerbated by inflation and economic uncertainty.
Despite challenges, Dollar General’s same-store sales grew by 1.2%, driven by higher transaction amounts, as more middle-income shoppers turned to discount retailers.
The retailer is expanding delivery services to 10,000 stores and aims to mitigate tariff impacts, leveraging lessons from previous tariff periods in 2018 and 2019.