Will Dollar General win over higher-income consumers with its new store concept?
Dollar General is launching a new retail concept — popshelf — designed to appeal to consumers with more disposable income than those who shop in its namesake stores.
The retailer will launch its first two popshelf locations in the Nashville market this fall, with plans to open 30 in suburbs around major cities by the end of its next fiscal year. Popshelf stores will feature cleaning products, health and beauty supplies, home decor, party goods, seasonal merchandise and more.
Dollar General promises that the new stores will provide customers with a “stress-free and guilt-free shopping experience as they find the items they want while being delighted by unique special products.” Ninety-five percent of items sold in the 9,000-square-foot stores will be priced at $5 or less.
Emily Taylor, chief merchandising officer at Dollar General, said the popshelf concept was built on insights the retailer gained from a successful non-consumables initiative at its namesake chain. The result she said, is that popshelf will offer its customers “a differentiated retail concept that seeks to bring joy to their shopping experiences.”
The retailer said the target demographic for popshelf is women in households earning between $50,000 and $125,000 annually. The core customer group in Dollar General stores are women from homes with annual incomes of $40,000.
“We are excited to introduce popshelf from a position of strength, further highlighting our innovative spirit and building on our proven track record of store format innovation,” said Dollar General CEO Todd Vasos in a statement. “We have leveraged robust consumer insights to create a unique store that we believe will resonate with new customers, while providing Dollar General with even more opportunities for growth in the years ahead.”
Dollar General reported an 18.8 percent increase in same-store sales in the second quarter as management increased focus on not only non-consumables but also its DG Fresh and DG Pickup initiatives. The retailer, which has seen its store count grow to nearly 17,000 locations, posted an 80.5 percent increase in operating profit, reaching $1 billion in the latest quarter.
- Popshelf teaser video
- Popshelf images
- Dollar General Unveils Exciting, New and Differentiated Retail Store: Meet popshelf! – Dollar General
- Dollar General to Open Stores Aimed at Wealthier Shoppers – The Wall Street Journal
- Dollar General Corporation Reports Second Quarter 2020 Results – Dollar General Corporation
- Will anything slow Aldi and Dollar General’s roll if COVID-19 didn’t? – RetailWire
DISCUSSION QUESTIONS: Do you expect to see Dollar General grow the new popshelf store concept into a successful national chain? What aspects of popshelf should DG focus on to make it most appealing to higher-income shoppers?