Discount retailer Dollar General (DG) - Get Dollar General Corporation Report announced that it is accelerating the adoption of its Popshelf store concept which is aimed at wealthier, suburban shoppers.
Dollar General says it now plans to have about 1,000 of the stores by the end of the 2025 fiscal year, including about 100 more locations that are set to open next year.
The company has 30 popshelf stores in six states as of October 29 with Texas expected to open its first stores in spring of next year.
"These plans include the acceleration of our pOpshelf store concept, as we expect to nearly triple our store count next year. Importantly, given the sustained and positive performance of our pOpshelf concept, we plan to further accelerate the pace of new store openings as we move ahead," Dollar General CEO Todd Vasos said.
Dollar General shares were falling 1.7% premarket Thursday after the company reported a third quarter earnings beat and boosted its 2021 profit forecast.
Dollar General said diluted earnings for the three months ending in October were pegged at $2.08 per share, down 10% from the same period last year but 7 cents ahead of the Street consensus forecast.
Group revenue, Dollar General said, rose 3.9% from last year to $8.5 billion, essentially matching analysts' estimates of an $8.49-billion tally. Same-store sales fell 0.6%, just outside the Refinitiv forecast of a 0.5% decline, but were up 11.6% from 2019 levels.
Looking into the 2021 financial year, Dollar General said it sees net sales rising by between 1% and 1.5%, a modestly boost from its prior range of +0.5% to +1.5%, with same store sales declining between 2.5% and 3%.