First Look: Dollar General launches new, more upscale store concept

Dollar General is launching a new retail concept aimed at a more upscale shopper than its namesake stores but one that is just as appreciative of a bargain.

The discounter’s new format, called Popshelf, will features a non-consumable merchandise mix that includes seasonal and home décor, health and beauty essentials, cleaning supplies, party goods, crafts and more. (A “highly curated” assortment of some of Dollar General’s private labels will be featured.). Nearly all – 95% on the items are priced at $5 or less. Stores will average about 9,000 sq. ft. (To see a video, click here.)

Popshelf will make its debut in the coming weeks, with two locations near Nashville, Tenn., in Hendersonville and Clarksville. Dollar General expects to open approximately 30 locations in various markets by the end of next year.

Popshelf will be targeted towards suburban women with a total household annual income ranging from $50,000 to $125,000, the company said.

The new concept leverages Dollar General’s merchandising learnings and real estate and operational excellence, but offers a different shopping experience, the company said. Merchandise will be continually refreshed and include seasonal specials and limited-time items. The interior has a bright, colorful look, with bold graphics and a purple and white color scheme.

“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 Todd Vasos, CEO, Dollar General. “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 has seen its sales surge during the pandemic. The discounter’s net sales rose 24.7% in its most recent quarter (ended July 31) amid a nearly 19% rise in same-store sales.