Dollar General's new Popshelf concept targets young suburbanites - Business Insider

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Dollar General is targeting younger, more affluent customers with Popshelf. Its chief marketing officer explains why she isn't worried about launching a new concept during the pandemic.

Business Insider spoke with the company's chief merchandising officer Emily Taylor about the new concept. She said Popshelf will focus on discretionary categories like home decor, housewares, party supplies, seasonal and holiday items, arts and crafts, and toys. Taylor said that the concept's target customer is slightly younger than the average Dollar General shopper. Popshelf's core demographic is also likely to skew more suburban and higher income than its dollar store counterpart.

While its core demographic may differ from that of Dollar General, Popshelf won't stray far from its parent company's focus on low prices. Taylor said that 95% of the items on Popshelf's shelves will be $5 or less. And three quarters of the store's stock will be $3 or less. Popshelf will apply a "treasure hunt" strategy to its stock, offering shoppers an ever-changing mix of products for a limited time.

Different categories will be showcased via "engaging displays" to give shopper "a store within a store feel." Taylor said the idea for Popshelf has been brewing at Dollar General for nearly two and a half years, as executives contended with lagging sales growth in non-consumable products. The dollar store chain previously launched a non-consumable initiative in order to reverse the trend. After initial "success" with the initiative, Taylor said that the company began to consider building an entire concept around non-consumable items.

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