Dollar General has fared well during the pandemic. Its many small stores, low prices, and improved assortment have attracted customers looking for ways to save money and limit their exposure to crowds. Sales rose more than 24% in the last quarter. Now the retailer has a plan to attract shoppers from a different income bracket, without alienating its core customers, who have historically been lower-income. Dollar General is launching a new chain of stores under a different name: popshelf. These stores will stock more discretionary items at higher prices, though not much higher: 95% of products sold by popshelf will cost $5 or less. But the product range will be designed to appeal to a customer with more money to spend on things like beauty products, decorations, and party supplies.
"We are excited to introduce popshelf from a position of strength," Dollar General CEO Todd Vasos said in a press release.