The Collapse of the Discount Chain: Why Your Favorite Budget Stores Are Disappearing

The discount retail landscape in 2025 is facing a dramatic shake-up as more beloved chains shut down stores across the country. Economic strain, rising operational costs, and evolving shopping habits have pushed many companies to downsize or disappear entirely. Big Lots, a longtime staple for discounted home goods and groceries, filed for Chapter 11 bankruptcy in late 2024. While there was initial hope for a buyout by Nexus Capital Management, the deal ultimately fell through. As a result, the company began liquidating its inventory and offering major sales, with discounts reaching up to 50% in some stores. The company blamed inflation, high interest rates, and intense competition from giants like Walmart and other warehouse clubs for its financial troubles.

Following suit, 99 Cents Only Stores also filed for bankruptcy in April 2024. Once a popular go-to for affordable everyday items, the chain was unable to secure a buyer and made the tough decision to shut down all 371 of its locations across California, Texas, Nevada, and Arizona. This move left many communities—especially lower-income neighborhoods—without access to a convenient and budget-friendly store.

Meanwhile, Dollar Tree announced the closure of roughly 600 Family Dollar stores in early 2024, with an additional 370 planned to shutter as leases expire in the coming years. The company also confirmed the closure of 30 of its own Dollar Tree locations. Dollar General, another major player in the discount retail space, is also making cuts. The company recently announced the closure of 96 stores, including 45 locations from its PopShelf brand. These closures were part of a portfolio review that identified underperforming urban stores facing operational challenges.

This wave of closures isn’t just isolated—it’s part of a larger retail trend. Analysts at UBS predict that as many as 45,000 stores could close nationwide within the next five years. Factors like the rapid growth of e-commerce, rising wages, and changing consumer preferences are making it harder for traditional brick-and-mortar stores to keep up. For shoppers, the impact is already being felt, especially in communities that relied on these retailers for affordable essentials. With fewer discount stores available, many people may have to travel further or pay more for the same items.

As retail continues to evolve, the fate of these chains serves as a reminder of how quickly the landscape can change—and how important it is for businesses to adapt in order to survive.