Dollar General has opened the first two of its stores that incorporate Popshelf operations into DG Market, the company announced.
DG Market is a larger format store that adds a stronger food component compared with the traditional Dollar General model, and Popshelf is a recently introduced store concept where the vast majority of items have a price tag of $5 or less. So, Dollar General noted, Popshelf offers consumers an affordable and fun shopping experience.
In assortment terms, Popshelf offers shoppers on-trend seasonal and home décor, health and beauty needs, home cleaning supplies, household and specialty items, arts and crafts products, party planning, entertaining items and toys.
Dollar General plans to roll out about 25 Dollar General and Popshelf combination locations as well as up to an additional 50 Popshelf stores in various markets across the United States by fiscal year’s end.
Dollar General introduced the Popshelf store concept in October of last year and has since opened 16 stores in three states. Stores are currently under construction in Mobile and Foley, AL and Aiken and Columbia, SC. In the company’s first-quarter conference call, Jeff Owen, Dollar General COO, said first-year annualized sales volumes for the initial eight Popshelf locations are trending between $1.7 million and $2 million per store, with an average gross margin rate of about 40%, a figure the company expects will climb as it scales the concept. Year one sales volume for a traditional Dollar General store is about $1.4 million, he pointed out, and the gross margin rate was about 32% for the company’s overall chain in 2020. Dollar General estimates that it has some 3,000 Popshelf store opportunities available in the continental U.S.
In the DG Market locations, the retailer has positioned Popshelf as a store-within-a-store presentation. The DG Market stores rolling out the new Popshelf operation are in White House and Hermitage, TN.
Through this combined format, we aim to deliver the value and products customers trust from a DG Market with the continually-refreshed merchandise including beauty and seasonal products, home décor and arts and crafts through Popshelf. We have been pleased with customers’ positive initial reactions, and we look forward to welcoming additional customers to experience our newest format.
– Todd Vasos, Dollar General CEO
“We are thrilled to enhance our customers’ shopping experiences through our new DG Market + Popshelf store-within-a-store concept, which further demonstrates our innovative spirit and track record of format development,” said Todd Vasos, Dollar General CEO, in announcing the initiative. “Through this combined format, we aim to deliver the value and products customers trust from a DG Market with the continually-refreshed merchandise including beauty and seasonal products, home décor and arts and crafts through Popshelf. We have been pleased with customers’ positive initial reactions, and we look forward to welcoming additional customers to experience our newest format.”
Dollar General will host a community grand opening celebration for each location on Saturday, July 31 beginning at 7 a.m. The first 100 adult shoppers through the door at each location will get a $10 gift card, and all customers will be able to partake of free coffee and breakfast snacks, hotdogs and popcorn beginning at 11 a.m. as well as samples from Monster, Coca-Cola and Reese’s while supplies last. Also, customers will receive a complimentary DG Market + Popshelf tote bag with product samples and gift boxes and can enter a sweepstakes to win $500 in free shopping.
