Dollar Stores Face Challenges as 99 Cents Only and Hundreds of Family Dollar/Dollar Tree Locations Set to Close

Operators of 99 Cents Only Stores said they would close all 371 locations, while nearly 600 Family Dollar and 400 Dollar Tree/Family Dollar spots are also shutting down.

Dollar stores have faced challenges from inflation, reduced SNAP benefits, inventory losses, mismanagement issues, and government penalties.

However, experts say dollar stores still have a future, as these closures target unprofitable spots and the format remains popular for low-cost essentials.

Dollar General plans to open 800 more stores this year, focusing on rural areas with less competition and expenses.

Some communities have fought against dollar stores, accusing them of limiting healthy food options, but proponents dispute this and say closures allow areas to find better options.