How did DG's home products segment trend in 2025?

Dollar General's home products segment showed growth in 2025, contributing to the overall sales increase, despite challenges from store closures and a contraction in gross margin.

1. **Sales Growth**: The home products segment experienced a 2% increase in sales, reaching $593 million. This growth was part of a broader trend of rising sales across various categories, including consumables, which contributed to the 4.5% year-over-year increase in net sales.
2. **Strategic Initiatives**: The success of Dollar General's Back-to-Basics initiatives, which focused on improving operational execution and enhancing the in-store customer experience, likely played a key role in the home products segment's performance. Additionally, the company's strategic focus on new store growth and improvements to its mature store base may have further solidified its position in rural communities, benefiting the home products segment.
3. **Challenges**: Despite the positive trends, the home products segment, along with apparel and seasonal goods, faced challenges such as reductions in seasonal goods and clothes, which partially offset the gains in consumables and home products. Moreover, the company reported a contraction in gross margin to 29.4%, which may have impacted profitability in the home products segment.
4. **Store Closures and Optimization**: As part of its portfolio optimization assessment, Dollar General planned to close 96 Dollar General stores and 45 Popshelf sites. While this represented a challenge, the reallocation of space within the home category, aimed at reducing less productive space and reallocating resources, could have had a positive long-term impact on the segment's efficiency.

In conclusion, Dollar General's home products segment exhibited growth in 2025, driven by strategic initiatives and increases in consumables, although it faced challenges from store closures and reductions in certain product categories. The company's ongoing efforts to optimize its store portfolio and enhance the in-store experience are likely to support the segment's continued performance.