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 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.
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.
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Also Read: A Struggling Gas Station Chain Now Files An Unexpected Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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