As Dollar Tree now sells items over $1, Dollar General is launching a new chain of stores that will charge higher prices.
Bidenflation has officially hit the dollar-store retailers.
This development was reported recently by CNN Business.
Dollar General is expanding its push to win wealthier customers in the suburbs using a new store model and name. The retailer said it will open 1,000 Popshelf stores over the next four years. https://t.co/YfIkScldKC
— CNN (@CNN) December 2, 2021
‘Popshelf’ Will Sell Higher-Priced Items Than Dollar General
Dollar General’s parent company will open 1,000 more in the next four years, after testing 30 “Popshelf” storefronts.
CNN Business reported, “Dollar General hopes the new concept will help it attract different customers than its traditional base of rural shoppers making about $40,000 a year. Popshelf stores are targeted for women in suburban areas with an annual household income between $50,000 and $125,000.”
“Dollar General executives said during an earnings call Thursday that they were accelerating their Popshelf strategy because the initial stores were exceeding expectations and were not taking away sales from its main banner,” CNN Business noted.
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The report continued, “Although Dollar General’s 18,000 stores sell mostly food, snacks, cleaning products and home essentials, Popshelf stores are stocked with home furnishings, party items, toys and beauty products for $5 or less. These products are more profitable than food, and the Popshelf concept was born out of Dollar General’s pre-pandemic strategy to add higher-margin goods to its merchandise mix.”
This news comes in the wake of competitor Dollar Tree recently announcing that their base price for all items will now be $1.25 as opposed to the traditional $1.
“For 35 years, Dollar Tree has managed through inflationary periods to maintain the everything-for-one-dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades,” said the company.
Dollar Tree will soon be $1.25 tree https://t.co/9hat6g2H13
— CNN (@CNN) November 28, 2021
Dollar Tree Now $1.25 Tree
“However, as detailed in its September announcement, the Company believes this is the appropriate time to shift away from the constraints of the $1.00 price point in order to continue offering extreme value to customers,” the statement added.
“This decision is permanent and is not a reaction to short-term or transitory market conditions,” the company insisted.
“The $1.25 price point, which will apply to a majority of Dollar Tree’s assortment, will enhance the Company’s ability to materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials,” the company added.
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