Dollar General to Open Fewer but Larger Stores in 2025

Dollar General to Open Fewer but Larger Stores in 2025

Dollar General plans to open nearly 600 new stores in 2025, scaling back from the 730 locations slated for 2024. This reduction comes as the company shifts its focus to larger store formats, aiming to provide an expanded selection of products to better meet customer needs.

Focus on Larger Store Formats

The new stores will range in size from 8,500 to 9,500 square feet, allowing Dollar General to include enhanced product offerings. These larger stores will feature expanded cooler space, an increased selection of health and beauty products, and fresh produce to cater to evolving consumer preferences.

Over 80% of the planned new stores will use this larger format, with many located in rural areas where Dollar General continues to expand its footprint. The company now operates more than 20,000 stores in 48 states, reaching approximately 75% of the U.S. population within a five-mile radius.

Reasons for Fewer Openings

The decision to scale back the number of new store openings stems from rising occupancy and operating costs, which have affected the company’s ability to expand as aggressively as in previous years. Despite the reduced number of openings, the strategic pivot to larger formats reflects Dollar General’s focus on long-term growth and meeting customer expectations for variety and convenience.

Competition in the Discount Retail Space

Dollar General’s primary competitor, Dollar Tree, is taking a different approach by focusing on smaller-format stores while addressing underperformance in its Family Dollar chain. Dollar Tree plans to open 600–650 new stores in 2025 while also closing underperforming Family Dollar locations.

To stay competitive, Dollar General is also piloting same-day delivery services at 75 locations. This initiative aims to position the company alongside major retailers like Walmart and Target, which have built strong reputations for their quick delivery options.

Conclusion

Dollar General’s move toward fewer but larger stores signals a strategic adaptation to shifting market conditions and customer demands. By expanding its product offerings and improving accessibility in rural areas, the company aims to strengthen its position in the competitive discount retail landscape. Meanwhile, its same-day delivery pilot program underscores its commitment to meeting consumer expectations for convenience and speed.

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Source: CoStar