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Dollar General Adds pOpshelf Store-in-a-Store to Attract Higher-Income Consumers

Dollar General is expanding its pOpshelf offering into a store-in-a-store format at two DG Markets in the Nashville, Tenn. area. The concept, which launched in October 2020 and has since expanded to 16 stores, offers a rotating selection of items at price points of $5 or less.

“Through this combined format, we aim to deliver the value and products customers trust from a DG Market with the continually-refreshed merchandise, including beauty and seasonal products, home décor and arts and crafts through pOpshelf,” said Todd Vasos, CEO of Dollar General in a statement. “We have been pleased with customers’ positive initial reactions, and we look forward to welcoming additional customers to experience our newest format.”

Dollar General is currently in expansion mode with plans for opening 1,050 new stores, remodeling 1,750 existing locations and relocating 100 stores in 2021. The total includes 50 standalone pOpshelf stores and 25 store-in-a-store variants, with the goal of expanding Dollar General’s customer base to new demographics. pOpshelf targets shoppers with incomes ranging from $50,000 to $75,000, compared to $35,000 to $40,000 for the retailer’s flagship stores.

Dollar General isn’t the only off-price retailer looking to draw in new customers with more upscale selections. Five Below plans to double the number of Five Beyond store-in-a-store concepts to 280 in 2021, bringing the higher-priced mini-stores to 30% of all its locations. Five Beyond products can crack the usual $5 ceiling, letting the retailer carry a wider variety of options than usual.

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Store-in-a-store concepts have been taking off recently, with other notable partnerships including:

  • Nordstrom opening 21 INDOCHINO store-in-a-store shops across the U.S., offering customers custom-fit apparel with free alterations;
  • Macy’s planning to add Macy’s Backstage, a shopping experience aimed at bargain hunters, at 270 locations;
  • Lids partnering with Designer Brands to bring licensed sports product to 45 DSW and The Shoe Company stores in Canada;
  • Tractor Supply Company rolling out Carhartt stores-in-a-store to more than 100 Tractor Supply locations in 2021, with an additional 25 stores to be added in 2022; and
  • Sephora taking charge of beauty departments within Kohl’s stores, with the first 200 in-store shops slated to open in fall 2021 and plans to have them in 850 stores by 2023.

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