Dollar General Expands New Higher-End Shops with $5 or Less Items — How Inflation Forced Company’s Hand

Dollar General Grocery Store stock photo
M. Suhail / iStock.com

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.

See: Cutting Out These 24 Expenses Will Save You Over $15,000 a Year
Find: The 5 Fastest Ways To Become Rich, According to Experts

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.”

Related: Dollar Tree Hikes Prices to $1.25 Permanently — How It Could Affect Stock

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.

Building Wealth

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.

Explore: These 5 Stocks Could Yield Huge Gains if Omicron Fears Recede
Learn: 34 Dollar Store Secrets You Need To Know Before You Shop

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.

More From GOBankingRates

About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.

Best Bank Accounts of June 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.