What:  A new concept launched by a US dollar store chain, aiming at a new, more upscale, customer

Why it is important:  So far, results of such a new venture, outside of Dollar General’s comfort zone, is exceeding expectations.

Dollar General has launched a new store concept in October 2020, Popshelf, to court an entirely new customer, different from the usual customer base of the retailer. The goal is to go slightly upscale in terms of product offer, but remaining at the same time in the dollar store universe.

Since the launch, 8 stores have been opened, each measuring approximately 900 sqm, with full year performances exceeding the ones of traditional Dollar General stores by USD 0.3 to 0.6 million on average, and a margin increased by 8 points.

It is viewed by analysts as a way for Dollar General to compete with other concepts such as Five Below, with prices under USD 5 on average. So far, the concept is resonating with customers, with NPS between 80 and 90%.

Dollar General launches a new store concept, Popshelf