In the landscape of retail in the United States, consumers seem to be better than ever when it comes to options. Major stores and well-known chains keep competing to capture our attention with special offers and exclusive collaborations.
However, not all companies are navigating these times successfully. Dollar General, the popular discount store chain, has announced the closure of around 100 locations in different cities across the country. This measure aims to improve its profitability in an increasingly competitive market.
Dollar General faces several challenges in the United States
Dollar General has been for years a haven for those seeking low prices on everyday products. The brand, known for its presence in rural areas and communities with lower incomes, offers items in small quantities at affordable prices. This formula has allowed millions of consumers to save on their daily purchases.
However, this model presents certain limitations. Although the unit prices may seem low, in reality, people pay more for each product due to the smaller quantities sold. This strategy contrasts with Costco or Sam’s Club, which sell in bulk and, despite having a higher purchase ticket, offer greater value per unit.
During these last years, the demand for discount stores has grown significantly, driven by consumers who seek to stretch every penny. Nevertheless, this same expansion has led Dollar General to review its geographic presence. Some stores in urban areas with more competition or lower financial performance do not justify their permanence.
Dollar General carries out strategic closures and has expansion plans
The Tennessee-based company announced that it will close approximately 96 Dollar General stores and 45 Popshelf stores, its most recent chain aimed at offering trendy products at affordable prices. Most of these stores that will close are located in urban areas or zones where sales do not meet expectations.
Despite these closures, Dollar General keeps a solid position in the U.S. market. Currently, it operates more than 20,000 stores across the country and plans to open up to 725 new locations in 2025 alone, according to The Street. The decision to close some stores responds to a strategic adjustment to focus resources on more profitable locations and optimize its operation.
This move shows that, although the discount store model remains popular, the chain must adapt to changing market conditions. The retail sector keeps evolving constantly, and those who do not manage to balance price, quantity, and convenience risk losing ground.
Dollar General is not immune to current challenges. Its closures point to a strategy that seeks to consolidate its leadership, preventing competition and store saturation from affecting its overall performance. Meanwhile, shoppers will continue to count on a wide network of stores that try to offer the best in savings and accessibility.