Market Update | Dollar General Portfolio Closings 2025

Overview

In March 2025, Dollar General announced the closure of 149 of their locations in a move to optimize their portfolio. The cause of these mass closings can be attributed to a 50% decrease in the corporation’s net operating profit from Q3 to Q4 2024.

Only recently, Dollar General released the full list of stores they closed down. The array of locations that have gone dark are among the lesser profitable stores, regardless of building age, lease type, or location.

Dual-Case Study | Dallas and Knoxville

5775 Bluebird Avenue Dallas, Texas

In early March 2025, Matthews™ provided the owner of a Dollar General in south Dallas with an on-market valuation of a 6.50% cap rate at $1,547,631.

Two months later, the owner of this Dollar General contacted Matthews™ with news of Dollar General giving notice through email that they were ceasing operations immediately, with nine years remaining on the lease.

Dollar General offered to buy out the lease for just over $400,000, which would leave the owner with a vacant property valued at around $250,000. With a total potential value of $650,000, the owner opted to have Matthews™ re-value the dark property at a 8.50% cap at $1,183,482, with the lease remaining in place for an additional nine years.

In two months the owner had lost over $350,000 in equity in their investment, with no opportunity to pivot their investment into a long-term asset with similar cashflow.

6035 Tazewell Pike Knoxville, Tennessee

In September 2024, Matthews™ provided an owner of a newly-constructed Dollar General outside of Knoxville with an on-market valuation of a 7.00% cap rate at $1,564,371.

Six months later, the owner of this location contacted Matthews™ with news of Dollar General giving him notice through email that they were ceasing operations in two weeks, with 12 years remaining on the lease.

The owner of this store decided to have Matthews™ re-value the dark property at a 9.00% cap at $1,216,733, with the lease remaining in place for an additional twelve years.

In six months the owner had lost about $350,000 in equity in their investment. With a large, low interest loan remaining on the property, there was no recourse for the owner to exchange into a new asset and achieve similar cashflow.