Dollar General launches new discount chain to bring in wealthier customers
Dollar General is launching a new discount chain with wealthier, suburban shoppers in mind.
The company’s latest concept, Popshelf, caters to clientele with more cash to spend and promises customers an affordable, “stress-free shopping experience” with most items priced under $5, the discount retailer announced Thursday.
“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,” Dollar General CEO Todd Vasos said 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.”
The first Popshelf stores will open in Nashville, Tennessee, this month and carry on-trend items including home decor, party supplies, health and beauty buys, and other non-consumables. Each store, sized at around 9,000 square feet, will also feature a variety of Dollar General’s private labels, along with limited-time items that are frequently changed out so shoppers have something new to return to, Dollar General executive vice president and chief merchandising officer Emily Taylor told CNBC.
The company said it hopes to have 30 locations in various markets by 2021.
The Tennessee-based chain has traditionally catered to shoppers on a budget in areas too rural to attract retail giants such as Walmart. While affordability is still the goal, new Popshelf stores will have women shoppers in mind and are set to open in suburban communities where annual household incomes range from $50,000 to $125,000, according to the release.
Estimates show Dollar General’s core consumers are families who earn less than $40,000 a year, USA TODAY reported.
Dollar General operates more than 16,000 stores across the U.S.
This story was originally published October 9, 2020 at 11:01 AM with the headline "Dollar General launches new discount chain to bring in wealthier customers."