Are Wealthier Customers the New Target for Dollar General Stores?
Written on
Chapter 1: The Rise of Popshelf
Dollar General has made an undeniable mark on the retail landscape, with roughly 75% of the U.S. population residing within five miles of a Dollar General outlet. The company celebrated the opening of its 18,000th store in Gulf Shores, Alabama, in November 2021, and plans to continue this growth trajectory. However, alongside traditional Dollar General stores, the company is also venturing into a new concept: Popshelf, aimed specifically at affluent suburban shoppers.
Popshelf's target demographic includes women from diverse suburban backgrounds, with household incomes ranging from $50,000 to $125,000. Unlike Dollar General's typical clientele, who earn around $40,000 annually and primarily purchase essentials like food and cleaning supplies, Popshelf caters to those looking for enjoyable, non-essential purchases. The store is designed to provide a guilt-free shopping experience, with most items priced at $5 or less, allowing customers to indulge without breaking the bank.
Section 1.1: The Unique Atmosphere of Popshelf
Popshelf distinguishes itself with a vibrant and playful atmosphere, featuring bright colors and an ever-changing inventory that gives shoppers a sense of excitement, akin to a treasure hunt. The selection is less about groceries and more about home décor, health and beauty products, party items, and seasonal decorations. Furthermore, customers can conveniently order online and pick up their purchases at their nearest Popshelf location.
Subsection 1.1.1: Store Within a Store Concept
In an innovative twist, Dollar General is piloting a "store within a store" model, where smaller Popshelf sections are integrated into existing Dollar General locations. As of late 2021, over a dozen of these hybrid stores were operational. Typically, stand-alone Popshelf locations span about 9,000 square feet, which is slightly larger than the average Dollar General store, measuring around 7,300 square feet.
Section 1.2: Expanding the Popshelf Footprint
Dollar General has ambitious plans for the Popshelf brand, aiming to establish 100 new locations by the close of 2022, bringing the total to approximately 150. The company's projections suggest that by the end of fiscal year 2025, there could be as many as 1,000 Popshelf stores, each potentially generating up to 15 new jobs.
Chapter 2: A Retail Phenomenon
Amidst a wave of closures for many brick-and-mortar retailers, Dollar General's expansion continues unabated. Currently, Dollar General stores operate in 46 states, with a new location in Athol, Idaho, set to open soon, marking the company's growth into 47 states. The 55 existing Popshelf stores are located across six states, including Tennessee, Alabama, Georgia, North Carolina, South Carolina, and Florida. It will be fascinating to observe where Popshelf will establish its next presence.
The first video, "What Dollar General Doesn't Want You To Know," delves into the secrets and strategies behind Dollar General's success.
The second video, "How Dollar Stores Quietly Consumed America," explores the rise of dollar stores and their impact on the American retail landscape.
Would you welcome a Popshelf in your community? Share your thoughts in the comments!