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Comments (2)
It honestly shouldn't come as a shock if you've been watching their recent quarterly performance. They are clearly feeling the pressure from investors to cut costs wherever possible, and unfortunately, regional support is usually the first place they target when numbers dip. It’s a classic corporate move to squeeze more efficiency out of the bottom line, regardless of how it affects the actual store employees who rely on that infrastructure. Expect more of these closures as they try to pivot, because the current model just isn't scaling effectively anymore.
I’m not surprised at all, though it’s definitely rough for the people involved. If you walk into any DG these days, the decline in maintenance and stocking is glaringly obvious. The company is trying to offload as much overhead as they can to offset their shrinking margins. It feels like they are sacrificing their long-term operational health just to make the balance sheet look slightly better for the next earnings report. The writing has been on the wall for a while now; this is likely just the start of a much wider restructuring effort.