American discount retail giant Dollar General is facing intense scrutiny from members of the US Congress over its recent multi-billion dollar acquisition of a key rival. A group of lawmakers has sent a formal letter to the company's chief executive, demanding detailed explanations for the significant job cuts and store closures that have followed the deal.
Lawmakers Demand Transparency on Acquisition Fallout
The controversy centres on Dollar General's $8.5 billion purchase of Family Dollar, which was finalised earlier this year. In a letter dated December 18, 2025, addressed to Dollar General CEO Richard McPhail, a bipartisan group of Congress members expressed deep concern about the deal's impact on workers and consumers. The letter was signed by prominent figures including Senator Elizabeth Warren and Representative Summer Lee.
The legislators highlighted that since the acquisition was completed, Dollar General has moved to close hundreds of Family Dollar stores and has initiated substantial layoffs. They argue these actions contradict earlier assurances about the merger's benefits and raise serious questions about market competition and corporate power in the low-cost retail sector.
Specific Concerns Over Jobs and Consumer Choice
The congressional letter poses a series of pointed questions to Dollar General's leadership, seeking clarity on several critical issues. Lawmakers have requested a full breakdown of the number of jobs eliminated since the takeover, including both corporate positions and in-store staff. They are also demanding information on the criteria used to select which Family Dollar locations to shutter.
Furthermore, the inquiry delves into the potential for reduced consumer choice and increased prices in communities where the two chains previously competed. The members of Congress have asked Dollar General to provide all internal analyses or reports that discussed the impact of the merger on employment, store operations, and pricing strategies. The company has been given a deadline of January 17, 2026, to respond comprehensively to the committee's requests.
Broader Implications for Retail and Antitrust Policy
This formal intervention from Capitol Hill signals growing political attention on consolidation within the retail industry, particularly in the essential discount sector that serves millions of low- and middle-income households. The lawmakers' action reflects a broader trend of increased scrutiny of large corporate mergers and their downstream effects on communities and the workforce.
The outcome of this congressional inquiry could have significant ramifications for Dollar General's integration plans and for future antitrust enforcement. It places the company's strategic decisions under a powerful microscope, with potential consequences for its public reputation and regulatory standing. The situation continues to develop as stakeholders await the retailer's official response.
