Given the current levels of unemployment and general economic uncertainty, consumers will be looking for lower cost alternatives, and this new concept will be an ideal fit for many. Dollar General and the low-cost category collectively have done very well during the pandemic, and I think this is a smart strategic move on the part of Dollar General to expand their base to more upscale customers. From real estate to inventory, it will be a buyer’s market for any strong retailer, and Dollar General is one of them.

I like it – it has the same feel (colorful, joyful) as the Five Below stores. I would watch the demographic areas these stores open in – if they keep within the parameters that they have defined, they will do well and I would like to see what a head-to-head against Five Below looks like.

Dollar General’s new popshelf concept is very similar to Five Below which is a very successful brand, which shows that there is big demand for this price point and the treasure hunt shopping experience. There are already a lot of higher-income consumers that shop at dollar stores and they are not ashamed to admit it. This should be a successful concept for Dollar General and I suspect some other chains may follow their lead.

Don’t higher income folks love good deals?

I’m guessing that the success of this venture will be driven as much by location selection as by the concept itself. What retailer are they going to be stealing market share from? Sounds like a nicely upgraded and well curated version of the seasonal aisle of my grocery store. But will it compel a separate trip?

This is a sensible move for Dollar General which needs to explore more growth vectors as the opportunity to open traditional stores starts to shrink. The existing economies of scale at Dollar General will allow the new banner to charge low prices and quickly turn a profit in a way that a completely new entrant to this space would not be able to do. I also think developing a new chain rather than just trying to expand what Dollar General does is sensible. Dollar General is very focused on value and convenience and anything that dilutes that will be unhelpful to the brand’s positioning. All that said, the biggest challenge will be driving regular footfall to the stores. Dollar General stores do not have this issue as they are mainly focused around food which is purchased regularly and they are located in rural areas where there is a dearth of competition. By contrast, much of what the new popshelf stores will sell is discretionary. They will also be operating in a part of the market… Read more »

This is an interesting idea; Dollar General already has a strong higher-income base shopping its current stores. It needs to be careful and learn from Walmart’s attempt to appeal outside its core demographic and not try to be something it’s not.

Interesting descriptions for a $5 and under place. “…’delighted’ by unique special products.” “…bring ‘joy’ to their shopping experiences.”

Dollar stores have become fun destination shopping for my family. There are none nearby so the trip is a big deal. We don’t go there for anything specific, we go to see what there is to get. I hope that doesn’t minimize my high standing on RetailWire! 🙂 Going to a luxury $5 version will be even more fun – I hope they come to Scottsdale soon! Frankly, I’d like to see them side by side. I’d dress up to go to the $5 side!

DG’s popshelf looks fun to shop and browse. Transitioning to a “fashion” play is smart, as fashion is a value attributed to selling higher price point products. Fashion will be an important part of the differentiation in terms of why popshelf is a viable stand-alone complement to the DG dollar stores. The video in the article displays a concept store of well-organized Target-like merchandising of novelty products with a fashion vibe designed to inspire the desire to buy on behalf of the newly intended popshelf customer. This positions popshelf as a bargain fashion product destination for all. Sort of like Tuesday Morning meets T.J.Maxx meets Target only cheaper.

Yes, popshelf will successfully attract urban, affluent consumers who seek a single source of staples. Dollar stores’ affordability and diverse assortments already appeal to wealthier households. Since the 2008 recession, consumers across the socioeconomic spectrum have made value shopping a regular part of their shopping habits. Value shopping even endured 2019’s economic boom.

popshelf’s focus on categories like cleaning products and health supplies makes sense during a pandemic. As we face potential new lockdowns, the categories of home decor, party goods and seasonal merchandise make good strategic sense as we learn to celebrate all our annual holidays at home.

Over the past two decades, dollar stores decimated party goods suppliers. Consumers don’t want to pay $10 for a giant licensed gift bag ahead of the holidays when they can get a similar item at dollar stores at half that price.

Overall, popshelf’s assortment reflects the categories in which consumers seek both value and quality.

Grow it? They will explode it. This is a brilliant retailer that has opened up a huge number of stores this year alone! They are a formidable competitor and know very well how to seize new opportunities and create new formats. And now this new concept store rolls out. A store which will be a store every customer who is mindful of a good deal and convenience will relate with and support. Brilliant.

Interesting concept, I think it’s going to be a hit. The value proposition that Dollar General offers will resonate regardless of income. Affluent shoppers still like to believe they’re finding deals. Adding the convenience of a smaller format neighborhood store and targeted assortment to the brand, I think consumer will respond.

Dollar General has been quite successful by making sure that they are exactly who they are: providing reasonably priced merchandise to people who have to stretch a paycheck in accessible locations where no one else goes. This format has given DG gross margins in the 30 percent range, net-to-sales ratio of around 6-9 percent, phenomenal growth rate in sales and the ability to afford an amazing store expansion pace. While the popshelf format does emphasize private label, the merchandising excitement projected by this interesting experiment, as well as the higher income bracket that is the target audience, moves away from the highly effective, very successful original vision that looks to be perfect for the post-COVID-19 world. popshelf shifts DG away from who it really is and may not prove to be a winning strategy.

One of the keys to making the popshelf store concept successful will be location. I’ve seen Dollar General and similar stores positioned in affluent areas. The right merchandise and experience makes those stores successful. Same for the popshelf concept.

Every brand needs a refresh and for Dollar General, the Popshelf concept may just give the retail giant the entryway into the urban cosmopolitan affluent neighborhoods. While the in-store experience looks to be on par with the latest trends, of upscale assortments, widened aisled, colorful floor displays, and a focus on health and beauty, Dollar General will run into plenty of competition in areas such as NYC.

The goal of every pharmacy business, including Rite Aid, CVS, Walgreens is to become the one-stop-shop for all health, beauty, home, and cleaning needs. These brands are undergoing their own in-store and digital transformations, so the customer already has a choice in these markets.

It will be interesting to see what strategies Dollar General undertakes to make Popshelf stand out and be an authentic store.

Truth is, more affluent shoppers have already found Dollar General and have been treating their treasure-hunt stores like a diamond in the rough for some time now. Popshelf means these affluent customers are just getting a nicer place to shop with a few more select items at very affordable prices. Sounds like a win-win for everyone.