In the competitive world of discount chains, the battle to attract consumers remains intense. With the growing interest in low prices and accessibility, low-cost brands are constantly seeking strategies to stand out in the United States.
In this regard, Dollar General has announced its plan to open 575 new stores in 2025. With this ambitious expansion, the chain seeks to strengthen its presence in the market and continue competing with other brands like Dollar Tree, which has been its main rival. Additionally, the company plans to remodel hundreds of existing locations and selectively close those with low performance.
Dollar General Takes on Dollar Tree in the United States
Dollar General's strategy is focused on aggressive expansion that will encompass both new openings and renovations in existing locations. Todd Vasos, the CEO of Dollar General, commented on the importance of this modernization: “We believe this review was necessary to further strengthen the foundations of our business.”
The remodeling includes around 2,000 stores, in addition to updating about 2,250 more through the Project Elevate program. This project aims to optimize the shopping experience and improve operational efficiency in the United States.
Meanwhile, the company is also making a strategic adjustment in its store network. This year, the closure of 141 locations is also expected in various parts of the United States, of which 96 are under the Dollar General brand and 45 under pOpshelf. Despite the closures, the company keeps a solid presence with more than 19,000 stores across the country, and this reduction represents less than 1% of its total.
On a financial level, Dollar General has shown consistent growth. In the fourth quarter of 2024, it reported revenues of $10.3 billion, which represented an increase of 4.5% compared to the previous year. However, its net earnings fell by more than 50% due to higher operating costs and changes in consumer behavior.
Despite the reduction in earnings, the company remains confident in its business model. Its focus on affordable prices and proximity to customers has been key to maintaining its growth. This model has allowed it to remain a popular option in many communities.
In addition to its success in the United States, Dollar General also has its sights set on Latin America. The company plans to open 15 stores in Mexico, seeking to establish itself in this emerging market. With this expansion, the chain hopes to take advantage of the growth in consumption in the region.
Dollar General's expansion reflects its ability to adapt to the market. With its modernization and expansion plan, the company seeks to strengthen its position. It faces competitors like Dollar Tree in an increasingly competitive environment.