Expansion of the Popshelf concept accelerates at Dollar General
Dollar General, the American discount retailer known for its widespread presence in rural and suburban communities, has announced a revised expansion plan for its suburban-focused concept, Popshelf. The brand, which targets shoppers with a focus on non-essential, higher-margin goods, is set to grow significantly over the next few years.
Originally launched in 2020, Popshelf has expanded to about 200 locations by 2024, offering a range of products priced below $5, including seasonal items, home decor, beauty products, cleaning supplies, and party goods. However, Dollar General has now adjusted its strategy for Popshelf in 2025.
The company aims to have around 1,000 Popshelf stores across the U.S. by the end of 2025, a significant increase from its current footprint. To achieve this, Dollar General plans to open up to 50 new Popshelf stores by the end of 2021, exceeding its initial target of 30 stores.
However, not all is smooth sailing for Popshelf. The retailer is closing about 45 underperforming stores, roughly 20% of its current Popshelf footprint, as part of a portfolio optimization effort. Additionally, six Popshelf locations will be converted into traditional Dollar General stores, indicating some shifts in store format based on market demand.
These closures and conversions are part of Dollar General's broader strategy to focus on more profitable locations and align better with customer demographics. The company is also discontinuing Popshelf's "store-within-a-store" format inside Dollar General Market stores due to mismatched demographics.
Meanwhile, Dollar General continues to aggressively expand its overall footprint in 2025, planning to open 575 new stores in the U.S. plus 15 in Mexico and remodel over 4,000 locations. The Popshelf brand is evolving with updated store formats and new product offerings, including a loyalty rewards app introduced after discontinuing the store-within-a-store locations.
GlobalData Managing Director Neil Saunders expects Dollar General to show strong underlying growth when compared to 2019, attributing much of the company's success to its expansive footprint and convenience for rural and other shoppers. However, Dollar General executives expect a slowdown in sales due to the vaccine rollout reshaping shopping habits.
Despite the challenges, Dollar General's full fiscal year sales increased by 21.6% year over year, reaching $33.7 billion. On a two-year stack, sales are expected to increase by 10% to 12%.
In conclusion, Dollar General is expanding its retail presence both through traditional Dollar General stores and its suburban-focused concept, Popshelf. The company is closing underperforming Popshelf stores and converting some to Dollar General outlets to optimize its portfolio and better meet target market needs. The Popshelf brand is evolving with updated store formats and new product offerings, aiming to reach 1,000 stores by the end of 2025.
- Dollar General plans to have around 1,000 Popshelf stores across the U.S. by the end of 2025, with an aim to open up to 50 new stores by the end of 2021.
- The company is also restructuring its Popshelf portfolio, closing about 45 underperforming stores and converting six locations into traditional Dollar General stores.
- To align better with customer demographics, Dollar General is discontinuing Popshelf's "store-within-a-store" format inside Dollar General Market stores.
- The Popshelf brand is evolving with updated store formats and new product offerings, including a loyalty rewards app, to attract more customers and meet industry standards in retail and finance.
