• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Money Profit News
No Result
View All Result
Home Breaking News

Dollar General tested a store for wealthier shoppers. Now, it will grow to 1,000 locations

by
December 2, 2021
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Dollar General debuted a new store called Popshelf about a year ago, aimed at wealthier, suburban shoppers who enjoy the hunt for a good deal.

Related Posts

Meta nudges its big VR push another step away from the Facebook legacy

Analyst Mark Mahaney sees more trouble ahead for internet stocks, but has some top picks

Buy SoFi here because it can weather a recession better than fintech peers, Mizuho says

Chipotle’s $50 million search for the future of fast food

The Tennessee-based discounter said Thursday that it now plans to have approximately 1,000 of the stores by the end of the 2025 fiscal year — including about 100 more locations that will open next fiscal year. It has 30 Popshelf stores in six states as of Oct. 29. It plans to open its first stores in Texas in the early spring.

News of the ambitious expansion plan comes as the retailer also plans to try out its first international market by opening 10 stores in Mexico by the end of fiscal 2022. Dollar General said it plans to open 1,110 new stores in the coming fiscal year, including Popshelf, Dollar General and the international locations.

Dollar General Chief Merchandising Officer Emily Taylor said in an interview that the retailer is speeding up expansion plans for the new store concept because of its popularity with customers. She said its average basket size and value is higher than at Dollar General’s namesake stores, though she declined to share numbers.

For the dollar store chain, Popshelf is a way to attract new customers and drive up profits. Its target customers are women who live in suburban areas and have an annual household income that ranges from $50,000 to $125,000, the company said. The stores are roughly 9,000 square feet and carry items such as home goods, seasonal decor and party supplies, including items from Dollar General’s private brands. Over 90% of the merchandise sold by Popshelf costs $5 or less, the company said.

Dollar General customers tend to live in rural areas, have a tighter budget and skew slightly older, Taylor said. Its customers have an annual household income of $40,000 or less. Sales at the dollar stores also have a heavier mix of grocery and snack items, which tend to be less profitable for the retailer.

Dollar General has more than 18,000 stores across 46 states. To drive growth, the retailer has been opening additional locations at a rapid clip. It is also adding fresh fruits and vegetables to more of its stores and expanding into health care. It hired its first chief medical officer in July.

Taylor said the idea of Popshelf was born as Dollar General worked on its nonconsumables initiative, a companywide effort to expand its store assortment to include more items such as home decor and party supplies, which began in 2018. She said the company saw an opening for a different store.

“We realized a standalone concept had a lot of merit, particularly as it related to providing a really exciting, joyful, engaging shopping experience in the small-box store,” she said.

That inspired Popshelf’s emphasis on colorful displays and frequent merchandise changes to make visits to stores feel like a “treasure hunt,” whether shoppers are looking for a gift, preparing for a party or decorating for the holidays, she said.

Depending on the time of year, its mix of goods includes toys, throw pillows, Christmas ornaments, pumpkin-shaped disposable paper plates, balloons, bath bombs and specialty food items such as hot cocoa and cheeses for a charcuterie board.

Home goods, in particular, has been a hot category, including decor and organizational items, Taylor said.

She said Popshelf stores offer customers an option to buy online and pick up in the store. She said the company will likely start shipping purchases to customers’ homes, too, so that people who don’t live near a Popshelf store can buy the products. She said it has gotten a lot of requests for that on social media.

Dollar General is also testing a store-within-a-store format. It has opened 14 smaller versions of Popshelf inside DG Markets, a format of Dollar General that is larger and has a wider selection of groceries, and it will add more.

Dollar General reported its fiscal third-quarter earnings on Thursday before the bell. It exceeded analysts’ expectations, with adjusted earnings per share of $2.08 on revenue of $8.52 billion. On average, analysts were expecting Dollar General to earn $2.01 per share on revenue of $8.50 billion, according to Refinitiv.

As of Wednesday’s close, its shares are up nearly 6% this year. The stock closed Wednesday at $222.79, bringing its market value to $51.98 billion.

The dollar store chain faces new challenges, as inflation weighs on profits. Its chief competitor, Dollar Tree, said last week that it would start selling most goods for $1.25 rather than $1 to cover rising freight costs.

Next Post

Weekly Initial Unemployment Claims Increase to 222,000

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Analyst Mark Mahaney sees more trouble ahead for internet stocks, but has some top picks

by
July 7, 2022
0

Internet stocks took a heavy blow during the first half of 2022 as rising inflation spooked investors away from the...

Read more

Analyst Mark Mahaney sees more trouble ahead for internet stocks, but has some top picks

Meta nudges its big VR push another step away from the Facebook legacy

Chipotle’s $50 million search for the future of fast food

Buy SoFi here because it can weather a recession better than fintech peers, Mizuho says

Florida Gov. DeSantis plans Utah fundraiser with GOP megadonors, signaling possible presidential run

Oppenheimer’s Stoltzfus — one of the biggest bulls left on Wall Street — cuts S&P 500 outlook

Load More

All rights reserved by www.moneyprofitnews.com

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

moneyprofitnews