400 Dollar General stores closing
Dollar General Corp., the largest U.S. retailer by number of stores, plans to close more than 400 locations next year and record expenses of about $138 million after two straight quarters of falling profit.
The closings will cost about $74 million, Goodlettsville, Tenn.-based Dollar General said Wednesday. The discount retailer also expects to incur $64 million in expenses as it tries to sell off excess inventory at cut-rate prices.
Dollar General is closing 6% of its stores and remodeling others to compete with Wal-Mart Stores Inc. and Walgreen Co.
Chief Executive David Perdue plans to close the company’s least profitable locations while opening new stores at a slower pace. Spokeswoman Tawn Earnest said the company didn’t know how many people would lose their jobs because of the closings.
Shares of Dollar General fell $1.01 to $15.70.
Dollar General, which sells about 30% of its products for under $1, operates almost 8,300 stores. The company missed its profit forecasts this year as mass merchandisers lured away customers.
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