March 24, 2025
Nationwide — Dollar store chains, including Dollar General and pOpshelf, are implementing strategic closures and expansions in response to evolving economic conditions and consumer behaviors.
Dollar General Announces Store Closures
Dollar General plans to close 96 underperforming stores and 45 pOpshelf locations during the first quarter of 2025. Additionally, six pOpshelf stores will be converted into Dollar General outlets. Despite these closures, the company aims to open approximately 575 new stores and remodel around 2,000 existing locations throughout the year. By year-end, Dollar General expects a net increase of about 600 stores, bringing the total to nearly 20,600 nationwide.
Impact on Local Communities
The closure of stores has significant implications for local communities. For instance, the Dollar General on South Pearl Street in Albany, New York, is among those slated for closure. This location has been a vital source of essential goods in an area considered a food desert. Residents have expressed concerns about limited access to affordable groceries and household items following the store’s closure.
pOpshelf Stores Offer Clearance Sales Amid Closures
In San Antonio, Texas, two pOpshelf stores are closing and currently offering a 50% discount on their entire inventory until April 18. These closures are part of Dollar General’s broader strategy to optimize its store portfolio. The affected pOpshelf locations are at 1231 Austin Hwy and 17822 La Cantera Pkwy (The Rim).
Industry Trends and Consumer Behavior
Despite these closures, the dollar store sector continues to experience growth. In 2024, Dollar General, Dollar Tree, and Five Below expanded their real estate footprints, contributing to year-over-year traffic increases of 5.1%, 5.2%, and 12.8%, respectively. This momentum has carried into 2025, with consistent monthly visit increases compared to the previous year.
The increase in foot traffic is attributed to rising inflation and economic pressures, prompting consumers to seek more affordable shopping options. Expanded product assortments and the convenience of additional store locations have also contributed to higher visit frequencies.
Looking Ahead
As dollar store chains navigate the balance between closing underperforming locations and expanding into new markets, they remain focused on adapting to changing economic conditions and consumer preferences. The ongoing strategy involves optimizing store portfolios, enhancing product offerings, and investing in remodeling efforts to better serve communities nationwide.
