Dollar General Responds to Dollar Tree and Confirms the Best-Kept Secret

Dollar General has revealed an important secret: the chain plans to open 725 new stores in 2025, despite closing 141. This decision has surprised the retail world. As the sector faces difficulties, Dollar General responds with a bold strategy.

Dollar General Has a Plan

Dollar General is not falling behind, and the company is betting on expansion. In 2025, it will open 725 new stores in the United States, and this will increase its presence and its capacity to serve more customers. Dollar General continues to grow, even when other retailers face problems.

However, Dollar General will also close 141 stores: 96 will be of the Dollar General brand, and 45 of the Popshelf brand. This adjustment is made to focus on more profitable locations. Despite the closures, the chain is moving forward with its growth plan.

Dollar Tree Is the Competition

Dollar General competes with Dollar Tree, as both chains fight to lead the discount market. However, Dollar General has taken the lead.

The chain has more than 26,000 stores in the U.S., while Dollar Tree remains strong, Dollar General is expanding more rapidly.

Popshelf and Its Future

Popshelf is Dollar General's premium concept. Launched in 2020, Popshelf has struggled to take off. The company is closing 45 stores of this brand, which represents 22% of its presence.

Despite this, Dollar General remains confident in Popshelf's future. The chain has plans to improve the shopping experience in these stores.

Dollar General faces a changing market, as consumers are changing their habits and competition is also intensifying. Despite this, Dollar General continues to adapt.

The company is partnering with DoorDash to offer deliveries from more than 16,000 stores. This program will start with 400 stores and expand to 10,000. This is a direct response to the growing demand for home delivery services.

Adapting to New Commerce

The transition to e-commerce is a necessity, and Dollar General doesn't want to fall behind and is taking advantage of new technologies. The partnership with DoorDash is a clear example of this. Dollar General also plans to optimize its operations through new distribution centers.

Despite its efforts, Dollar General faces challenges: Amazon and other delivery giants are gaining ground. However, the company is determined to remain competitive. Its focus on customer service and the expansion of its stores is a clear sign of its commitment to the future.

Dollar General has had mixed results. In its fourth-quarter earnings report for 2024, the company reported a 52.4% drop in its net income.

However, net sales grew 5% to $40.6 billion. Despite the challenges, comparable store sales increased 1.4% compared to the previous year.

Dollar General: Future Plans

Despite the store closures, Dollar General is looking to the future. The company expects to increase its net sales between 3.4% and 4.4% in 2025. It also expects an increase in comparable store sales between 1.2% and 2.2%.