If you’ve browsed through a strip mall lately, you might have spotted Popshelf—the colorful store full of $5 decor, trendy housewares, and seasonal knick-knacks. You may have heard whispers about “Popshelf going out of business” or rumors about a shakeup. Let’s clear the air: Popshelf isn’t disappearing, but it’s going through some major changes.
How Popshelf and Dollar General Are Connected
To start at the top, Popshelf is owned by Dollar General. The big discount chain launched Popshelf back in 2020 to grab customers who want a little more than what dollar stores usually offer. Think of Popshelf as Dollar General’s more playful cousin—with aisles of candles, quirky mugs, art supplies, and gifts that look pricier than they really are.
At first, Popshelf seemed like a hit. People liked the mix of low prices and Instagram-ready vibes. Dollar General had ambitious plans and aimed to open hundreds of these stores pretty quickly.
What’s Actually Happening to Popshelf?
But here’s where things change. In March 2025, Dollar General announced some tough calls for Popshelf’s future. They’re closing 45 Popshelf stores, which is about 20 to 22 percent of all their U.S. locations. Besides that, another 6 Popshelf stores will get converted into regular Dollar Generals. After all this, Popshelf will have around 180 stores open in the U.S.
That’s a pretty significant cut, especially considering Popshelf originally had hopes of 1,000 locations in a few years. These aren’t rumors—this is official news from the company itself.
For now, if Popshelf is in your town, there’s a good chance it will stick around, but you might see fewer of them in the future. If you’ve heard about closures or a local Popshelf going away, yes, some are indeed shutting their doors this year.
Why Is Popshelf Closing Stores?
So what’s driving this? It really comes down to a tricky economy and changes in how people are shopping.
Dollar General said it did a big “store optimization review.” That’s business-speak for looking at what’s working and what’s not, especially when it comes to stores that aren’t turning a profit. They found some Popshelf stores were just not bringing in enough shoppers or sales to justify the lights staying on.
With many families watching their spending and not buying as many extras, shops that focus on non-essentials (like home decor or seasonal gifts) are feeling the pinch. Dollar General executives mentioned “a soft discretionary sales environment”—translation: people are cutting back on nonessential purchases, which is basically Popshelf’s whole thing.
Rising costs for labor, goods, and rent didn’t help either. So, they cut the weakest stores instead of risking bigger losses.
Stepping Back on Expansion
One of the biggest pivots is that Popshelf won’t be opening any new stores in 2025. That’s a sharp contrast to earlier, when Dollar General was adding Popshelf locations by the dozens each year.
Now, the focus is on the remaining stores. The company says it’s all about making those locations better—improving service, cleaning up displays, and figuring out what products are actually selling. Their goal is to give Popshelf a stronger foundation instead of expanding too fast.
It’s a classic course correction. Instead of chasing big growth numbers, they’re working to shore up the brand where it’s already doing well.
Still Some Good News in the Middle of It
Even with the store closures, it’s not all doom and gloom. Dollar General has pointed out that many existing Popshelf stores are doing surprisingly well, posting double-digit sales growth compared to last year.
They’re hoping those stronger performers can carry the brand until things pick up again. There are plans for more brand partnerships—think exclusive lines and new home goods. The company is also experimenting with more engaging displays and in-store events to draw people in.
For example, Popshelf may team up with smaller brands or local makers to bring in fresh products. The idea is to create new reasons for customers to visit—and to buy a little more while they’re there.
Popshelf vs. the New Wave of Discount Shopping
But Popshelf isn’t operating in a vacuum. Retail has gotten a lot more competitive, especially with low-cost online upstarts like Temu and Amazon Haul offering tons of cheap finds for delivery.
Online shopping is pulling away shoppers who might have once browsed Popshelf for fun. Analysts are divided on whether Popshelf’s strategy—fewer stores, tighter focus, more partnerships—will be enough to fight back.
Some say Popshelf might struggle unless it can make a clearer case for why shoppers should browse in person. Others point out that if Popshelf can carve out a loyal audience, it still has room to thrive. The competition, though, is real and getting tougher every month.
To survive, Popshelf will need to keep things fresh and maybe even get creative—think pop-up events, collaborations, or tech upgrades. After all, even big names aren’t immune to quick changes in shopper habits.
What Dollar General Is Hoping For
Despite all the shakeups, Dollar General isn’t giving up on Popshelf. In recent talks with investors, company leadership emphasized that Popshelf is still a key part of their long-term plans.
Dollar General has invested a ton in the brand already, and they’re planning to keep funding improvements, staff training, and marketing. The emphasis right now is on patience and smart moves—making each dollar count instead of swinging for the fences.
If Popshelf’s stores can do well in this tighter environment, there may be another shot at expansion down the line. For now, Dollar General is betting that slow and steady beats fast and risky.
The support from their parent company gives Popshelf room to adjust and recover without facing the dire fate of an outright shutdown. That’s not something every retail chain in trouble can count on.
Lessons for Other Retailers
Popshelf’s story actually reflects a bigger trend in retail lately. After years of aggressive growth, a lot of chains are realizing not all stores are winners. We’ve seen big names—from department stores to trendy startups—hit pause and look for ways to survive a tougher economy.
It’s not that brick-and-mortar retail is dead. It’s just different now, and brands have to be pickier about where they put their resources. For shoppers, it means fewer stores, but hopefully better ones.
Companies like Popshelf are trying to become destinations with their own loyal followings. That could mean more thoughtful product picks, special events, or even a small-business vibe in some locations.
If you’re interested in broader trends like this, sites such as Sera Business have regular updates and insights on how brands adapt during rocky times. The retail world still has plenty of curveballs.
Finishing Up: Popshelf in 2025 and Beyond
So, is Popshelf going out of business? The short answer is no—but its footprint is shrinking, and its playbook is being rewritten.
Popshelf stores are closing in some towns and getting a tighter focus in others. The ones that are sticking around are seeing improvements and, in some cases, impressive sales growth. Dollar General isn’t walking away; they’re just being more careful, hoping to weather the storm and keep Popshelf relevant.
Customers who love the Popshelf experience will still have places to shop, just maybe not as many as before. The brand hopes smarter moves now will pay off later, even as competition heats up from low-cost online retailers and shifting shopper habits.
For Popshelf, it’s about staying nimble and not stretching too thin. We’ll keep watching to see how this retail experiment evolves—and which changes stick for good. In the meantime, you can still snag those $5 vases and cute greeting cards, at least at the stores that make the cut.