Dollar General to close five locations in New Orleans East

Dollar General, one of the largest discount retailers in the U.S., appears to be pulling out of New Orleans East.

The Nashville-based chain, which has more than 20,000 locations nationwide, has not officially announced any closures of its 11 New Orleans outlets. But signs on the doors of its five stores in New Orleans East indicated that the company is shutting down those locations as of August 14.

Dollar General has more than 600 locations in Louisiana, including dozens across the metro area in Jefferson, St. Tammany and surrounding parishes. It isn’t clear if any other area stores besides the five in New Orleans East are on the chopping block.

The stores slated for closure are: 10600 Chef Menteur Hwy; 5700 Crowder Blvd.; 6500 Downman Road; 4515 Old Gentilly Road; and 11020 Morrison Road.

The company did not respond to a request for comment.

The closures come as Dollar General agreed to a deal with federal regulators earlier this month to implement new safety protocols in its stores and pay $12 million in penalties over allegations it put low-wage employees in dangerous working conditions.

Dollar General has been expanding the number of stores it operates as its rival, Dollar Tree — which also owns Family Dollar — announced the closure earlier this year of hundreds of U.S. locations.

In the past, the companies have been blamed for driving independent grocers and local retailers out of business in the low-income areas where they operate, creating what are often referred to as “food deserts” that lack easy access to fruits, vegetables and other fresh food.

Earlier this year, the City Council passed a motion directing the City Planning Commission to study zoning changes that could help curb the proliferation of discount stores and tire shops in New Orleans East. The study was due in June but has not yet been finalized or released.

Only New Orleans East?

Despite Dollar General’s recent tussle with regulators, the chain has performed well financially and the local closures appear to be isolated. In May, company executives announced plans to open 730 new stores this year and renovate more than 1,650 others. No other closures, or pending closures, have been reported by the company or by media outlets in other states.

In New Orleans East, as many as 50 employees could be affected, according to local community organizers, who staged a small protest Tuesday afternoon outside the Morrison Road location.

While these same community groups have criticized Dollar General and its competitors for low wages, poor working conditions and driving local grocers away, organizers said Tuesday that closing five stores in a low-income area with few other retail outlets will pose a hardship to residents.

“These stores sell baby food, diapers, medicine, basic household goods,” said Kenya Slaughter, an organizer with Step Up Louisiana, which gathered without about 15 protesters outside the store. “While they have problems, they are better than nothing.”