Dollar General initiated store portfolio optimization review in Q4

During the fourth quarter of fiscal 2024, the company initiated a store portfolio optimization review of its Dollar General (DG) and Opshelf bannered stores, which involved identifying stores for closure or re-bannering based on an evaluation of individual store performance, expected future performance, and operating conditions, among other factors. As a result of this review, the company plans to close 96 Dollar General stores and 45 Opshelf stores, and convert an additional six Opshelf stores to Dollar General stores in the first quarter of the 52-week fiscal year ending January 30, 2026. The company’s operating profit for the fourth of quarter of fiscal 2024 included charges of $232M, which resulted in a negative impact to EPS of approximately $0.81, primarily due to these store closures as well as Opshelf impairment charges. “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,” said Todd Vasos, Dollar General’s chief executive officer. “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.”