MJP –
A discount retailer now makes a painful closure in New York due to an increase in crime, following the shutter of 51 other locations.
Dollar General is set to close another store following a series of closures, much to the disappointment of its customers.
Signs were recently posted at a Brooklyn, New York location announcing its permanent shutdown, which some customers believe is a result of rising theft.
One customer, Nas Saidi, expressed their sadness on Facebook, initially thinking the closure was due to renovations.
They shared a photo of the store displaying signs that read “store closing,” “everything must go,” and “total inventory liquidation.”
The exact timing of the final closure remains unclear, but the store is currently still open for liquidation sales, reports the US-Sun.
This news follows Dollar General CEO Todd Vasos’s comments during a recent earnings call, where he acknowledged the financial difficulties faced by the retailer.
The company reported a 20.2% drop in profits, from $468.8 million in 2023 to $374.2 million.
Vasos attributed this decline to changing consumer behaviors influenced by inflation and the broader economic environment.
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Dollar General primarily serves customers with lower incomes, earning around $35,000 annually, but these shoppers are increasingly turning to competitors.
Retail analyst Joe Feldman noted that while Dollar General has historically performed well in tough economic times, stronger competition is impacting its sales.
Even more affluent shoppers are seeking out other budget-friendly retailers like Aldi, Lidl, and Walmart.
As a result of these financial challenges, Dollar General has closed a total of 51 stores between February and August, even as it opened 410 new locations.
The company plans to continue expanding, with intentions to open 730 new stores, remodel 1,620, and relocate 85 more in the coming months.
Vasos emphasized the importance of focusing on value for customers to encourage their return.
The company also aims to enhance its distribution efficiency and reduce inventory losses, which includes removing self-checkout kiosks from most locations.
Despite some employees not adhering to it, Dollar General maintains a penny items policy as part of its strategy.
