A woman shopping at Popshelf
Source: Popshelf Facebook

Dollar General Will Open 1,000 More Popshelf Locations in the Future

Danielle Letenyei - Author

Dec. 2 2021, Published 2:32 p.m. ET

Discount retailer Dollar General plans to open 1,000 Popshelf future locations by 2025, with 100 new stores planned for 2022.

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Dollar General’s first two Popshelf stores opened near Nashville in October 2020. The stores are geared toward a higher-income clientele, mostly targeting suburban women with annual household incomes between $50,000 and $125,000.

popshelf store
Source: pOpshelf
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Popshelf stores feature seasonal and home decor, health and beauty needs, cleaning supplies, party goods, and more. Most of the items are priced at $5 or less.

30 Popshelf stores opened in the last year.

Within a year of opening the first two stores, Dollar General has opened 30 Popshelf stores in six states. It also added 14 “store-within-a-store” formats, which are Popshelf sections located in existing Dollar General stores.

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“Throughout pOpshelf’s first year, we’ve been very pleased by the customer demand for the concept’s on-trend merchandise, price points and shopping experience,” said Emily Taylor, Dollar General’s executive vice president and chief merchandising officer. “pOpshelf is an integral part of Dollar General’s innovative and long-term strategy as we continuously look for ways to best serve customers and diversify the relevant goods we offer.”

Taylor told CNBC that the average basket size and value at Popshelf stores is higher than at Dollar General stores. Dollar General customers usually have household incomes of $40,000 and below and live in rural areas.

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By February, the company plans to have 50 Popshelf stores and 25 store-within-a-store formats open and running. There are also plans to expand into Texas with the first two stores located in San Antonio and McKinney.

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Dollar General is opening stores in Mexico.

On the same day Dollar General announced that it was adding new Popshelf locations, the company also announced that its core business was expanding internationally. The company plans to open 10 Dollar General stores in Mexico next year.

“We are taking what makes DG great in the U.S. and adapting it to the Mexican retail landscape and feel strongly that our unique proposition will resonate with the Mexican consumer,” said Jeff Owen, Dollar General’s chief operating officer.

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Dollar General currently operates more than 18,000 stores in 46 states. About 75 percent of U.S. residents live within five miles of a Dollar General store, company officials says.

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Source: Getty Images
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Dollar General’s net sales increased in the third quarter.

Results from third quarter of Dollar General’s 2021 fiscal year show that net sales increased by $8.5 billion or 3.9 percent. The net sales increase was mainly driven by positive sales contributions from new stores, partially offset by a slight decline in same-store sales, and the impact of store closures, the company said in a statement.

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News of Dollar General’s expansion plans didn’t do much to help it on Wall Street. CNBC reports that DG shares fell more than 3 percent early on Dec. 2.

Dollar Tree raised prices earlier this year.

Earlier this fall, Dollar General competitor Dollar Tree announced that it was raising its prices above $1. Most items in the store will start at $1.25, while select stores will have “Dollar Tree Plus” sections where items cost $3–$5.


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