Dollar General Expands New Higher-End Shops with $5 or Less Items — How Inflation Forced Company’s Hand
Dollar General introduced a new store last year named Popshelf aimed at wealthier shoppers. The company announced on Dec. 2 that it now plans to have 1,000 stores by the end of the 2025 fiscal year, plus 100 new locations that it will open next fiscal year, according to CNBC.
As of Oct. 29, there are 30 Popshelf locations open in six states with plans to expand into the international market by opening up 10 stores in Mexico by the end of the 2022 fiscal year. Dollar General expects to open 1,110 new stores in the coming year, including Popshelf, Dollar General and the international locations.
“At Popshelf, customers will find a differentiated retail concept that seeks to bring joy to their shopping experiences, with surprising deals in targeted non-consumable product categories,” Emily Taylor, Dollar General’s executive vice president and chief merchandising officer, said in a company statement last year. “We are excited to welcome customers into these stores.”
According to the company, the target audience is suburban women with an annual household income between $50,000 to $125,000. Popshelf shoppers can find seasonal and home decor, health and beauty items, home cleaning supplies, party goods, entertaining needs and more. Approximately 95% of items are priced at $5 or less, Dollar General said.
Dollar General is trying to boost growth, CNBC noted, as it prepares for slowing sales and inflation. The company has less room to raise prices due to its reputation as a discount retailer.
CNBC reported that company shares fell by more than 3% early Dec. 2 after announcing that it expects same-store sales to decline this fiscal year. A net income of $487.03 million was lower compared to a year ago when it earned $574.26 million, or $2.31 per share.
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