You’ve probably seen the headlines or the viral TikToks. Maybe you drove past a local spot and saw those neon "Everything Must Go" signs plastered across the windows. It’s easy to jump to conclusions. When a massive retailer starts locking doors, the immediate thought is usually: "Well, they’re done for. Bankruptcy is next."
But honestly? The situation with Dollar General going out of business is way more complicated than a simple "closed for good" sign.
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While it's true that some locations are vanishing, the company isn't actually disappearing. Far from it. In fact, for every door they lock in 2025 and 2026, they seem to be opening two or three more down the road. It’s a weird, contradictory strategy that has left a lot of shoppers confused.
The Reality of the "Closures"
Let's look at the numbers. They aren't fake, and they aren't small.
In early 2025, Dollar General confirmed it would shutter roughly 96 of its namesake stores. They also took a massive axe to their "pOpshelf" brand—that's the trendier, slightly higher-end version of the dollar store—closing about 45 of those locations. If you’re keeping score, that’s over 140 stores gone in a single sweep.
It sounds like a disaster. But here’s the kicker: Dollar General has over 20,000 stores.
Losing 100 stores is basically like a person losing a few strands of hair. You notice it if you’re looking closely, but the person isn't going bald. CEO Todd Vasos basically called this a "portfolio optimization." In plain English? They’re getting rid of the duds. Many of these closing stores were in urban areas where rent is high, theft is a constant headache, and the narrow margins of a dollar store just don't make sense anymore.
Why the rumors started
People love a good "downfall" story.
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- The Family Dollar Effect: People often confuse Dollar General with its rival, Family Dollar (owned by Dollar Tree). Family Dollar is actually closing nearly 1,000 stores. That’s a massive retreat. When people hear "dollar store closing," they often group them all together.
- Legal and Safety Fines: It’s no secret that Dollar General has been in hot water with OSHA and various state attorneys general. Just recently, in late 2025, Pennsylvania slapped them with a $1.55 million settlement for overcharging customers at the register.
- Empty Shelves: If you’ve walked into a store lately and seen empty aisles, it’s usually a staffing issue, not a "we are broke" issue.
The 2026 Expansion Plan (The Part Nobody Talks About)
If they were truly going out of business, they wouldn't be spending billions on new construction.
For the fiscal year 2026, the company announced plans to open hundreds of new U.S. stores—roughly 450, according to recent earnings calls. They are also pushing hard into Mexico and remodeling thousands of existing locations. They aren't retreating; they are relocating.
They are obsessed with rural America.
Basically, if you live in a town with one stoplight and a post office, Dollar General wants to be your primary grocery store. They’ve realized that trying to fight Target or Walmart in the suburbs is a losing game. But in a town of 1,500 people? They are the only game in town.
What’s Actually Changing Inside the Stores?
If you shop there, you're going to notice a shift. They are moving away from the "cluttered" look—sorta.
The company has been under immense pressure to fix safety violations. You know the ones: boxes blocking fire exits, carts in the middle of aisles, one person working the entire store. To fix this, they’ve started "Project Elevate." It sounds fancy, but it’s really just about hiring more people and keeping the aisles clear so the fire marshal doesn't shut them down.
They are also doubling down on "consumables."
That means more milk, more eggs, and more bread. They’ve realized that while you might only buy a plastic toy once a year, you need milk every week. By turning into a "mini-grocery store," they are making themselves "recession-proof." Even when the economy is trash, people still buy laundry detergent.
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The "Overcharging" Controversy
We have to talk about the pricing issues because it’s a huge reason why trust is dipping.
In December 2025, Pennsylvania Attorney General Dave Sunday pointed out a "blatant deception" where prices at the register didn't match the tags on the shelf. This wasn't just a PA thing; Ohio and other states have seen similar lawsuits.
Is it a conspiracy to steal your nickels? Probably not. It’s more likely a result of understaffing. When you only have two people running a 10,000-square-foot store, changing 500 price tags on a Tuesday morning usually falls to the bottom of the to-do list. But for a customer on a tight budget, that 50-cent difference matters.
Is Your Local Store Safe?
Probably. Unless you live in a high-rent city center where the store has been struggling with "shrink" (the retail word for shoplifting) or poor management, your Dollar General is likely staying put.
Check for these signs if you’re worried:
- A "Relocation" sign: Usually, they aren't leaving the zip code; they’re just moving to a bigger building with a better parking lot across the street.
- The "Market" conversion: Some stores are being rebranded as "DG Market," which focuses more on fresh produce.
- Clearance sales: If the store is actually closing, they’ll start with 10–25% off everything and escalate quickly.
Final Verdict on the Rumors
Dollar General is not going out of business.
The company is actually remarkably healthy from a financial standpoint, reporting over $40 billion in annual sales. They are simply pruning the garden. They are cutting off the weak branches (underperforming urban stores and the pOpshelf experiment) so the main trunk can keep growing in rural areas.
If you’re a shopper, the best thing you can do is stay vigilant at the register. Always check that the price you saw on the shelf is what the scanner says. If it isn't, speak up—most managers are now authorized to override the price on the spot to avoid further legal drama.
Next Steps for Shoppers:
If you want to track specific closures in your area, your best bet is to monitor local property tax records or building permits. Retailers usually have to file for "Signage Removal" or "Lease Termination" months before the public knows. Also, keep an eye on the "Dollar General Investor Relations" page; they release their "Store Portfolio Review" every quarter, which is where the real list of upcoming closures is hidden.