The retail industry has faced incredible volatility over the past few years. With financial challenges born from the COVID pandemic and rising inflation, companies have been forced to analyze their costs and cut locations across the country. Popular chains like Bed Bath & Beyond, CVS, and Best Buy have all closed stores in the U.S. this year alone. Now, even popular dollar store chains, which have risen in popularity during tough economic times, are gearing up to shutter stores. Read on to find out where Dollar General and Family Dollar are closing locations, starting next month.
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Dollar stores have fared better than other retailers recently.
iStockU.S. inflation hit a 40-year record high in June when the Consumer Price Index (CPI) jumped up by 9.1 percent, according the Bureau of Labor Statistics (BLS). And while September's CPI was lower at 8.2 percent, it's still much higher than expected. But as other retailers face significant challenges with consumer spending amid increased inflation, dollar store chains have seen substantial growth. In August, The New York Times reported that two of the largest U.S. chains—Dollar General and Dollar Tree (which also owns Family Dollar)—had both seen higher sales and profits in their last quarter.
According to the newspaper, this is a sign that shoppers have moved to discount retailers thanks to rising prices elsewhere. Both companies reported that higher-income shoppers were also visiting their stores more often. "The consumer is trying to make ends meet, and when you have limited funds in your wallet, the dollar stores provide the ability to do that," Joseph Feldman, a senior analyst at Telsey Advisory Group, told The New York Times.
Nevertheless, this positive trend isn't enough to keep all dollar stores open to the public, and there are closures on the horizon.
Dollar General and Family Dollar are closing stores soon.
iStockDespite recent windfalls, two popular dollar store chains are getting ready to permanently shutter locations in the U.S. Dollar General recently confirmed that it is closing one of its stores in Indianapolis, Indiana, local ABC-affiliate WRTV reported on Oct. 18. And a Family Dollar store in Norwalk, Ohio, is also shutting down, the Norwalk Reflector reported on Nov. 2.
According to the newspaper, employees of the Family Dollar in Norwalk said that the store will shut its doors Dec. 3. For the Indianapolis Dollar General closure, employees told WRTV that the store will also be closing in early December, but an exact date has not yet been given.
Family Dollar said the upcoming closure was not its decision.
ShutterstockThe Norwalk Family Dollar released a note to shoppers, stating that the closure is "due to circumstances beyond [their] control." Per the Norwalk Reflector, employees say the landlord of the store's building—Prack Enterprises LTD, who also owns other stores in the plaza—is going to use the dollar store's space for its own business. Family Dollar is planning to "find another location" for its store.
"Our entire staff would like to extend our heartfelt thanks to all of our wonderful and loyal customers. It has been a pleasure to have served this great community since 1987," the store said in its letter. "For your continued shopping needs, there are stores located in Bellevue, and two stores in Sandusky, one on Perkins Avenue, and one on Cleveland Road where some of our staff will be relocating to. We hope to see you there."
But Dollar General said it is choosing to close this location.
ShutterstockDollar General, on the other hand, did not indicate that it would be opening another location in Indianapolis. In a statement, a corporate official told WRTV that the decision to close the store was made "after careful consideration" by the company. "Dollar General is continually evaluating our stores and how to best serve our customers," they said.
Residents in the area told the news outlet they believe crime is to blame for the Dollar General closure. Indianapolis Metropolitan Police Department (IMPD) records indicate that the soon-to-be-shuttered Dollar General store has reported at least 99 robberies and/or thefts in the past five years, per WRTV. "It has to be because of the crime and violence," Reverend Charles Harrison—president of the TenPoint Coalition, an organization that works to curb violence in the area—told the news outlet.
Harrison added, "I know people are afraid to come to the store particularly at night time because of the history of the robberies that have been happening and people feel like it's just not safe anymore."
