Dollar General is launching a new brand aimed at higher-income earners — and keeping the focus away from the “dollar” in its name.
The new brand, Popshelf, will still sell inexpensive products in its stores, with most items priced at $5 or less, the Wall Street Journal reported. But the stores will carry fewer Dollar General staples (like food) and more nonconsumable items, including home decor, craft supplies, and beauty products.
Dollar General, which operates more than 16,300 stores nationwide, started working on the concept two years ago. The company has consistently been one of the top discount retailers in the country, and its sales have grown even amid the pandemic. The company looked to hire 25,000 workers early in the pandemic.
Emily Taylor, chief merchandising officer at Dollar General, said the pandemic hasn’t affected its plans for Popshelf and that “the need for this store is very relevant now and maybe increasingly so.”
CEO Todd Vasos said executives determined that a brand separate from Dollar General would help attract the more affluent customers they’ve long sought.
“There is nothing wrong with that traditional Dollar General,” he said. “But customer-facing-wise, we are going to do our best to keep those two brands separated.”
The company plans to open 30 Popshelf locations nationwide by the end of the year in suburbs of larger cities. It’s starting with two stores outside Nashville, Tennessee. [WSJ] — Dennis Lynch
Source: The Real Deal