Discount retailer distress dominated the retail landscape in 2024 as the subsector faced hundreds of store closings and major bankruptcy filings.
Dollar Tree (DLTR) in March 2024 revealed that it would close about 600 of its Family Dollar locations in the first half of 2024 and another 370 in the following years as their leases expire. The company also said it would close 30 Dollar Tree stores.
Another discount retailer, 99 Cents Only, took more drastic action as it filed for Chapter 11 bankruptcy in April 2024 to reorganize as a going concern and sell its assets.
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The retail chain changed plans and instead liquidated and closed down all 371 of its locations in Arizona, California, Nevada, and Texas when it could not find a buyer.
Another regional discount chain in February 2025 went the same direction as 99 Cents Only.
Discount retail chain Bargain Hunt’s parent Essex Technology Group LLC filed for bankruptcy on Feb. 5, launched going-out-of-business sales, and closed all 92 of its locations in 10 Southern and Midwestern states.
Big Lots filed bankruptcy, closed hundreds of stores
The most significant discount retailer to file for bankruptcy last year was Big Lots, which in September 2024 filed for Chapter 11 protection, seeking to sell its assets to stalking-horse bidder Nexus Capital Management for a $760 million bid, which fell through.
In December 2024, Big Lots started going-out-of-business sales at its 1,392 stores in 48 states. Then, days later, Gordon Brothers Retail Partners purchased the company’s assets with plans to resell stores, distribution centers, and intellectual property to other retailers.
Shortly thereafter, Gordon Brothers reached an agreement with Variety Wholesalers Inc. to purchase 200 to 400 Big Lots stores and operate them under the Big Lots brand, along with up to two distribution centers.
Big Lots stores that were not sold would permanently close.
Dollar General plans to close over 100 stores, which will include PopShelf locations. Photographer: Angus Mordant/Bloomberg via Getty Images
Dollar General closes over 100 stores
Finally, popular discount retailer Dollar General Corp. (DG) revealed during its fourth quarter 2024 earnings call that it will shutter 96 of its stores and another 45 of its PopShelf chain locations, after conducting a portfolio optimization review.
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The company asserted in the March 13 call that the Dollar General stores represented less than 1% of its overall store base, but many are located in urban areas that have become increasingly challenging to operate successfully.
More closings:
- Popular retail chain to close unprofitable store locations
- Bankrupt retail chain unloads store leases, key asset
- Popular discount retailer files bankruptcy, closes all stores
The retailer also decided to close 45 PopShelf locations and convert six other stores to the Dollar General banner based on financial and operational considerations after analyzing the business performance of its portfolio. The reduction of PopShelf locations will result in 180 remaining locations, according to the earnings call.
Despite announcing the store closings, Dollar General reported that its fourth quarter of 2024 surpassed market expectations at $1.68 earnings per share compared to the forecasted $1.50 EPS. It also reported $10.3 billion in revenue, which was slightly higher than the predicted $10.26 billion, for a 4.5% year-over-year increase.
Dollar General also surpassed the $40 billion mark in annual sales for the first time.
The company does not expect improvement in the macroeconomic environment in 2025, but it believes it is well-positioned to mitigate the impact of impending tariffs on products it sells, the company’s CEO Tom Vasos said in the earnings call.
Vasos said the company successfully mitigated the impact of the last tariff impositions in 2018 and 2019, but it did have some price increases.
The company operates over 20,000 Dollar General stores in 48 states and over 220 PopShelf stores in 21 states.
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