Dollar General sales top estimate; closing 96 namesake, 45 Popshelf stores

Dollar General is closing 45 Popshelf stores and converting six others to its namesake banner.

Dollar General reported a mixed fourth-quarter as a store portfolio review cut into its earnings but sales came in just ahead of estimates as shoppers spent more.

As a result of its store review, the discounter plans to close 96 Dollar General stores in the first quarter of its current fiscal year. Many of of the stores slated for closure are in urban locations and have become increasingly challenging to successfully operate, CEO Todd Vasos said on the company’s earnings call.  

In addition, Dollar General will shutter 45 Popshelf stores, and convert an additional six Popshelf locations to the Dollar General banner in the first quarter, leaving 180 stores remaining as part of the Popshelf banner. The retailer launched its Popshelf format, which caters to a more upscale bargain-focused shopper, in 2020.  

“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,” Vasos stated in the earnings release. “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.”

On the company’s earnings call, Vasos expressed confidence about Popshelf.

“As we enter 2025, we are optimistic about the Popshef banner and our opportunity to drive improvements in our sales results as customer feedback on the brand and shopping experience continue to be strong,” he told analysts. “Going forward, we plan to build on the strength to increase sales through a variety of initiatives centered around new brand partnerships, enhanced in-store experience, new and expanded categories, and a new loyalty and digital experience.”

Dollar General also reiterated its plans to execute approximately 4,885 real estate projects in fiscal 2025, including opening approximately 575 new stores in the U.S. and up to 15 new stores in Mexico, fully remodeling approximately 2,000 stores, remodeling approximately 2,250 stores through Project Elevate, and relocating approximately 45 stores.

[READ MORE: Dollar General to remodel 4,250 stores, open 575 new stores in 2025]

The chain is also investing in a number of technology projects in 2025, including a finance and human resources modernization project, which is primarily focused on a new enterprise resource planning system that will be implemented over the next couple of years, company executives said on the call.