How did DG's operating expenses trend in Q4 2025?

Dollar General's operating expenses in Q4 2025 were significantly higher than the previous year, reflecting strategic decisions and macroeconomic pressures.

1. **Strategic Decisions Impact**: Dollar General's operating expenses were influenced by strategic decisions, such as store closures and conversions. The company closed 96 Dollar General stores and 45 Popshelf stores, converting six other Popshelf stores into flagship banner locations. These actions led to impairment charges, which affected the bottom line.
2. **Macroeconomic Pressures**: The macroeconomic environment also played a role in DG's operating expenses. CEO Todd Vasos noted that consumers were prioritizing essential items, leading to a decrease in demand for discretionary products. This shift in consumer behavior likely increased the cost of operations as a percentage of sales.
3. **General and Administrative Costs**: The largest operating expense for Dollar General was General and Administrative costs, amounting to $9.95 billion, which is 91% of the total expenses. This indicates that administrative costs were a significant component of DG's operating expenses in Q4 2025.
4. **Trend Analysis**: Comparing Q4 2024 with Q4 2025, Dollar General's operating expenses increased from $10.01 billion to $10.3 billion. This trend suggests that despite efforts to optimize store portfolios and streamline operations, the overall cost of doing business remained elevated due to various external and internal factors.

In conclusion, Dollar General's operating expenses in Q4 2025 were characterized by strategic initiatives and macroeconomic influences, leading to a trend of increased expenses compared to the previous year.