Dollar General (NYSE: DG) recently announced that it open up over 1,000 more of its higher end pOpshelf stores by the end of 2025, with over 100 locations opening over the course of the next year. pOpshelf, which sells products above Dollar General's usual $1 unit price, also targets those who are looking for a good deal.
There are currently about 30 Popshelf stores within six states, with pOpshelf looking to start by expanding to Texas in early spring. According to Dollar General Chief Merchandising Officer, Emily Taylor, the Dollar General is choosing to expedite its goals that are relevant to store expansion since it has become so renowned and well-liked by consumers.
pOpshelf store chain was created by the Dollar General are to allure new consumers who are interested in bargains above $1, with the brand desiring to attract suburban women with annual income between $50,000 to $125,000. Some of the items that pOpshelf includes in its stores are houseware, arts and crafts, and toys that come at relatively low prices.
Although dollar stores usually earn more profit throughout economically difficult times such as now, they are also limited in how much they are feasibly able to raise their prices. They are still, however, able to raise prices, and to potentially attract a much wealthier audience of consumers.
"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," Taylor said in a statement. "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. We're thrilled to announce our expansion plans today and look forward to bringing this differentiated shopping experience to additional communities in the coming years."
With the Dollar General's new expansion of pOpshelf stores, it will surely collect more business, especially given that these types of stores cater to wealthier consumers. During economically challenging times, it may be difficult to attract more of a customer base, but it will surely put the chain to the test.