The pop shelf store is approximately 9,000 square feet and sells items such as household items, seasonal decorations and party items, including items from Dollar General’s private label.
The Tennessee-based discounter said Thursday that it plans to have about 1,000 stores by the end of fiscal year 2025. This includes about 100 stores that will open next year. As of October 29, we have 30 pop shelves in 6 states. We plan to open our first store in Texas in early spring.
The news of the ambitious expansion plan is that retailers have announced that they will test the first international market by opening 10 stores in Mexico by the end of 2022. General and international locations.
However, stocks fell more than 1% early Thursday after the company expected same-store sales to decline this year.
In an interview, Dollar General Chief Merchandising Officer Emily Taylor said the retailer is accelerating plans to expand its new store concept because it is popular with its customers. She said its average basket size and value were higher than the store of the same name in Dollar General, but she refused to share the numbers.
For the dollar store chain, Popshelf is a way to attract new customers and make a profit. The company’s target customers are women who live in the suburbs and have an annual household income of $ 50,000 to $ 125,000. The store is approximately 9,000 square feet and carries merchandise, including household goods, seasonal decorations, party goods, and other private-label products from Dollar General. The company said more than 90% of the products Popshelf sells are under $ 5.
Dollar General’s customers tend to live in rural areas, have tight budgets, and are a little older, Taylor said. The customer’s annual household income is less than $ 40,000. Sales at discount stores also tend to be less profitable for retailers, as they often combine groceries and snacks.
Dollar General has more than 18,000 stores in 46 states. To drive growth, retailers are opening up additional places with rapid clips. We are also adding fresh fruits and vegetables to more stores. Expansion to health care..that is First Chief Medical Officer In July.
According to Taylor, the idea for pop shelves was born when Dollar General worked on a non-consumables initiative. Another store.
“I’ve found many benefits to the stand-alone concept, especially because it’s related to providing a truly exciting, fun, and engaging shopping experience in a small box store,” she says. Told.
It’s colorful to make your visit to the store feel like a “treasure hunt”, whether shoppers are looking for gifts, preparing for parties, or decorating their holidays. She said she influenced pop shelves with a focus on displays and frequent product changes.
Depending on the time of year, specialties such as toys, cushions, Christmas ornaments, pumpkin-shaped disposable paper plates, balloons, bath bombs, hot cocoa and cheese for pork boards are included.
According to Taylor, household items in particular are a hot category, such as ornaments and organizing items.
She said the pop shelf store gives customers the option to buy online and receive at the store. She said the company is likely to start shipping purchases to customers’ homes so that people who don’t live near popshelf stores can buy them. She said it received many requests about it on social media.
The company is also testing the format of in-store stores. We have opened 14 smaller versions of Popshelf within DG Markets. This is a larger, grocery-rich, Dollar General format, and will be added further.
Dollar General is trying to drive growth and attract high-disposable shoppers to combat inflation in preparation for a slowdown in sales. When budget-conscious customers are hit by higher prices at gas stations and grocery stores, it is reduced to the money they can spend at dollar stores. Compared to other retailers, discount stores are less capable of raising prices because of their reputation for value and the risk of scaring customers.
Its main competitor, Dollar treeLast week, he said he would take a big step and pass on more money to shoppers.that Start selling most items for $ 1.25 instead of $ 1 To cover rising fares.
Dollar General said Thursday that it expects same-store sales to decline from 2.5% to 3% this year. Considering the pandemic sales surge over the two years, this represents about 13% to 14% growth.
Annual earnings per share range from $ 9.90 to $ 10.20, slightly higher than previously expected at $ 9.60 to $ 10.20.
Revenues exceeded analysts’ expectations in the third quarter of accounting, which retailers reported Thursday, ending October 29.
The company earned $ 2.08 per share with revenue of $ 8.52 billion. According to Refinitiv, analysts expected Dollar General to make $ 2.01 per share with $ 8.5 billion in revenue.
However, net income of $ 487.03 million was lower than $ 574.26 million a year ago, or $ 2.31 per share.
As of Wednesday’s closing price, Dollar General’s stock has risen almost 6% this year. The stock closed at $ 222.79 on Wednesday, with a market value of $ 51.98 billion.
Dollar General Opens 1,000 Pop Shelf Stores for Wealthy Shoppers
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