Dollar Tree to charge more than a dollar for certain items
Dollar Tree has no plans to change its name to Dollar-25 Tree, Dollar-50 Tree, or anything else, but it will start selling some products at $ 1.25, $ 1.50 and at other prices in the near future.
As The Wall Street Journal reportsDollar Tree has been under pressure from investors to relax its commitment to the $ 1 limit for some time now. After all, a dollar is worth less than it was in the first slot. opened its doors in the mid-1980s. As a result of rising inflation rates and manufacturing costs, supply chain issues, and a 20% drop in stock value this year, the company has finally decided to give in.
“We recognize the need to make adjustments in the current economic environment,” said Michael Witynski, CEO of Dollar Tree. The Wall Street Journal, in what we can only assume was a tone of steely resignation.
Price increases will not necessarily only affect existing products. New items, like more frozen meat or seasonal offerings, will also appear on shelves, Witynski says. (It remains to be seen whether a marginal increase in the price of meat will be enough to convince skeptical dollar store workers that it is of sufficient quality to buy for themselves.)
This is not the first time that Dollar Tree has experimented with more expensive products. In 2019, the company started added Dollar Tree Plus sections in some places, which had items at $ 3 and $ 5. These stores will all start selling items over $ 1, as will a number of other sites.
For every person bemoaning the change, there is probably another who is simply surprised that it did not happen sooner: it seems impossible that a company with such low prices could even remain solvent. You can find out their secrets to making money here.
[h/t The Wall Street Journal]