Dollar General Archives

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.

For more Store Closure News like this, join the newsletter or opt-in for push notifications.

Also Read: A Struggling Gas Station Chain Now Files An Unexpected Bankruptcy

Other Economy News Today

Economy News Today - Discount Retailer Now Makes A Painful Closure in New York. — Economy News Today – Discount Retailer Now Makes A Painful Closure in New York.

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

Market News Published Daily 📰

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Be sure to share this article with your community.

Also, thank you to all of our site sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Our readers can now donate $3 per month to support independent journalism.

For daily news and updates on your favorite stories, opt-in for push notifications.

Follow Frank Nez on X (Twitter), Instagram, or Facebook.

More Market News 📰

Support Independent Journalism ✍🏻

Support independent journalism for just $3 per month!

Your contributions help power Franknez.com as the cost of widgets and online tools continue to rise.

Thank you for your support!

Support Franknez.com

Recommended For You ✨

Dollar General now says consumers are running out of money, particularly those in lower-income households, per a new report.

Lower-income American households are running out of money each month, according to Dollar General, which reported disappointing financial results that caused its shares to plummet over 30%—the largest single-day drop in the company’s history.

As the largest dollar store chain in the U.S., with over 20,000 locations across 48 states, Dollar General highlighted the financial struggles faced by many of its customers due to ongoing inflation and the depletion of savings accumulated during the pandemic.

The company also noted an increase in “shrink,” a term that refers to inventory losses from theft and other factors.

Based in Tennessee, Dollar General operates small-format stores that sell affordable food and household items, many priced at $1.

Their locations are primarily situated in rural areas and economically disadvantaged urban neighborhoods.

According to company filings, their core customers are often the first to feel the impact of negative economic conditions and the last to experience any recovery.

CEO Todd Vasos reported that around 60% of Dollar General’s sales come from customers earning less than $35,000 annually, who are currently feeling “financially constrained.”

He noted that many of these customers feel worse off financially than six months ago due to rising prices, softer job markets, and increased borrowing costs.

For the quarter ending on August 2, Dollar General’s same-store sales—an important industry metric—grew by just 0.5%, falling short of both the company’s expectations and Wall Street forecasts, per Financial Times.

This growth was driven entirely by consumables like food, rather than discretionary items such as clothing and home goods.

Executives indicated that sales were weakest in the final week of each month.

CFO Kelly Dilts remarked that their typical customer often runs out of money by month’s end.

This outlook contrasts with comments from other retailers.

For instance, discount apparel chain Burlington Stores noted that while low-income shoppers remain “very fragile,” their circumstances have improved somewhat as inflation decreases.

Similarly, Walmart and Target reported solid sales growth, with Walmart indicating it has gained market share from competitors.

Vasos acknowledged that despite the challenging conditions, customer traffic at Dollar General increased by 1% in the second quarter, although the average spending per shopper dropped by 0.5% due to falling retail prices.

The company’s net sales rose by 4.2% year-over-year to $10.2 billion, but operating profit fell by 20.6% to $550 million, partly due to markdowns and increases in inventory losses attributed to ‘shrink’.

Rival Dollar Tree, which operates under its own name and the Family Dollar brand, is set to report its earnings next week, with its shares currently down more than 10% in the past week.

For more economy news and updates like this, join the newsletter or opt-in for push notifications.

Also Read: A Struggling Gas Station Chain Now Files An Unexpected Bankruptcy

Other Economy News Today

Economy News Today - Dollar General Now Says Consumers Are Running Out of Money. — Economy News Today – Dollar General Now Says Consumers Are Running Out of Money.

California is now hitting farmers up to $10k fines per day after lawmakers approved an order to increase violation fees.

California lawmakers approved significant increases in fines for water violations late Friday after ranchers defied state orders by pumping water from the drought-stricken Shasta River for eight days.

Previously, state officials imposed the maximum fine of $4,000, which amounted to about $50 per rancher, causing frustration among tribes and conservationists, per Cal Matters.

The Shasta River is crucial for salmon habitat, especially during California’s driest three-year period on record.

The new legislation, awaiting Governor Gavin Newsom’s signature, would double daily fines for minor violations and impose fines of up to $10,000 per day for those violating curtailment orders, along with an additional $2,500 for every acre-foot of water taken.

If this law had been in effect, the Siskiyou County ranchers could have faced total fines exceeding $1.2 million.

Analise Rivero from California Trout, a conservation group that supported the bill, expressed hope that increased penalties would deter future violations.

The legislation passed with little controversy, reflecting the state’s complex water rights system, which often pits agricultural interests against environmental concerns.

Assembly Bill 460 was introduced in response to a standoff with Siskiyou County ranchers.

It passed the Senate with a vote of 38 to 2 and the Assembly with 65 to 5, aiming to ensure compliance with water use regulations and prevent a “tragedy of the commons.”

California’s major agricultural organizations did not oppose the bill after amendments were made to remove provisions that would have allowed for quicker intervention by state officials to prevent environmental harm.

This change alleviated concerns from various stakeholders, including growers and urban water agencies.

The final version of the bill, according to California Farm Bureau’s senior policy advocate, Alexandra Biering, serves as a strong deterrent against illegal water use.

State officials have long criticized their limited ability to enforce water rights and monitor illegal diversions.

The bill addresses enforcement gaps highlighted during the Shasta Valley incident, where a rural water association ignored state curtailment orders to benefit their cattle, leading to a dramatic drop in river flows and jeopardizing salmon populations.

Previously, the water board had limited options for imposing fines, which were seen as insufficient by tribes and conservationists who emphasized the cultural significance of salmon to local communities.

The new legislation is seen as a necessary step toward better enforcement of water regulations.

While the legislation is celebrated, some farmers and ranchers express that the underlying curtailment rules are more pressing than the fines, arguing that they need river water for irrigation during critical growing periods.

The bill is part of a series of legislative efforts aimed at reforming California’s water priority system, with ongoing discussions about the need for enhanced enforcement of water rights.

Water advocates hope that the collaboration between various stakeholders can lead to further improvements in managing California’s water resources.