Dollar Tree is about to see a 25% jump in prices.
The company announced Tuesday that it will raise prices from $1 to $1.25 on the majority of its products by the first quarter of 2022. The COVID-19 pandemic and inflation has continued to put pressure on Dollar Tree, one of the only remaining dollar stores, and other low-cost businesses.
Dollar Tree said that the decision is permanent and is “not a reaction to short-term or transitory market conditions.” Instead, the company said they hope the move can allow them to continue offering “extreme value” to customers.
“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 will have greater flexibility to continue providing incredible value that helps customers get the everyday items they need and celebratory and seasonal products Dollar Tree is best known for,” Dollar Tree said said.
DollarTree is raising prices because they CAN- not bc they need to.
It is a choice of how to share the benefits of their scale
To customers?
To employees?
To shareholders?
To mgmt? https://t.co/tvb8wTdB85— Stephanie Ruhle (@SRuhle) November 24, 2021
Just bc input costs go up…that does NOT mean a business must raise prices to customers.
It is not automatic— Stephanie Ruhle (@SRuhle) November 24, 2021
The store chain added that the new pricing strategy allows for it to reintroduce many “customer favorites” that were discontinued due to the constraints of the $1 price point.
The company also said that the price increase will help increase its profit margins by “mitigating historically-high merchandise cost increases,” which it said includes freight and distribution costs and higher operating costs, such as wage increases.
Dollar Tree’s leadership team has been planning for the new price point since late summer 2021, the company said, and based on their testing phase suggested that 91% of those surveyed indicated they would still shop at Dollar Tree with the same or increased frequency.
More information about the decision can be found online.
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But don’t worry the inflation will on affect the wealthy. So I’m sure when they send their hired servants to the dollar tree for whatever they will send some extra money with them also.
Great deal on calendars for 2022; One dollar. It is too bad that the poor and the middle class are bearing the brunt of Joe Biden’s inflation! The sad thing is, the poor vote for these garbage communists and some of the “suburban housewives” do the same.
Well, MSNBC—take your gripe to the Oval Office where the problem originated. Businesses, as with individuals, can’t continually take it on the chin—something has to give. You people in the Media need to stop protecting the incompetent Biden and his administration and start putting the blame where the blame belongs. Strive for greatness in your vocation rather than wallowing in the mud of mediocrity.
Makes me want to take my 200 “ That’s all me, I did That” Joe Biden stickers to my local Dollar Tree store and mark every item now over a dollar. They should change the sign on the building From Dollar Tree to “Dollars Flee”,,,right out of your pocket.
OK, I understand. The Dollar stores have been selling (at first) all their items for $1, for a very long time. Over time (surprise, surprise) their costs have gone up. The result has been a more limited selection of actual $1 items. It had to happen some time. We all know a dollar does not buy what it did 5-10 years ago. I am old enough to remember $0.10 stores. Do you see them today? What would they stock if they were still in business? I have paid as low as $0.18 a gallon for gasoline. Yes, I really am that old ;~} So folks, don’t get bent out of shape over what had to happen. I am a hard core conservative, which means I am also a realist. I shop these stores, and it just means there will be a more varied selection.