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Dollar General Launches Popshelf - $5-or-Less - Stores

Discount retailer Dollar General launches Popshelf stores to sell items priced at $5 or less.

Discount retailer Dollar General  (DG) - Get Dollar General Corporation Report on Thursday said it launched a store brand, Popshelf, to sell items priced at $5 or less, largely targeting women customers.

The Goodlettsville, Tenn., company said it would sell a range of products, from health and beauty care to home-cleaning supplies to home decor, at its first two Popshelf locations in Hendersonville and Clarksville, Tenn., this fall.

Dollar General says the main target customers for Popshelf stores are female, located in diverse suburban communities, with total household annual incomes of $50,000 to $125,000.

Popshelf customers "will find a differentiated retail concept" offering "surprising deals" in non-perishable goods, Emily Taylor, executive vice president and chief merchandising officer at Dollar General, said in a statement.

In recent years Dollar General has brought to its stores more items with wider profit margins, like holiday decorations and beauty products, The Wall Street Journal reported.

"[C]onsumer insights" prompted DG to open the Popshelf concept, which will give Dollar General more opportunities for growth, Chief Executive Todd Vasos said in the company statement. 

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Averaging 9,000 square feet, the Popshelf stores will be bigger than Dollar General's regular stores. 

Merchandise will be regularly refreshed, and seasonal specials and limited-time items will be offered at prices and values exceeding consumers' expectations, the company said.

Dollar General plans to open Popshelf stores in some 30 locations in various markets by the end of fiscal 2021. Each Popshelf' is expected to create up to 15 new jobs.

In August the company posted stronger-than-expected second-quarter earnings , and boosted its share-buyback plans, as consumers shifted to discount retailers in the wake of the coronavirus pandemic.

Pandemic-related spending, which has shifted consumer needs to lower-priced, thinner-margin items, helped boost Q2 same-store sales 18.8%, Dollar General had said earlier. 

Shares of Dollar General were up 1.7% to $218.22 at last check.