Dollar Tree added the $1. 25 prices to more than 2,000 stores in December (it has around 8,700 US stores), and Coresight said in a report that its “decline in shopper numbers appears to coincide with its price hike.”.
One way to think about this is most items will cost $1.25 New York (CNN Business) Dollar Tree will soon be $1.25 tree. The company — one of America’s last remaining true dollar stores — said Tuesday it will raise prices from $1 to $1.25 on the majority of its products by the first quarter of 2022.
You could be thinking “Is Dollar Tree raising prices in 2021?”
On Tuesday, Sept. 28, 2021, Dollar Tree Inc. announced a price increase in almost all its stores.
Dollar Tree is raising some prices above $1 in certain stores. It’s also bringing its range of $3 and $5 products to more locations. The chain has been hit hard by rising shipping and labor costs, which are squeezing profit margins.
Why did Dollar Tree raise their prices?
NEW YORK (AP) — Faced with the rising cost of goods and freight, discount retail chain Dollar Tree said Tuesday it will be raising its prices to $1.25 for the majority of its products. Dollar Tree said the reason for raising its prices to $1.25 was not due to “short-term or transitory market conditions” and said the price increases were permanent.
In case you’re wondering what prompted the rise in pricing, it could be heavily tied to the rise in freight and transportation costs . In late August, freight data and media site Freightwaves reported that Dollar Tree said high freight costs were impacting their earnings.
An initial guesstimate making the rounds on social media put the price hike at about $1.50 per item, but the press release stated that might just be the beginning. The announcement projected that by fiscal year-end 500 Dollar Tree Plus stores would be “offering an assortment of value-priced $1, $3 , and $5 products.”.
Are Dollar Tree’s new prices alienating customers?
We won’t know for certain whether customers are turning their backs on Dollar Tree’s new prices until it reports its quarterly results in the coming weeks. But there are signs the move may be alienating some shoppers.
Dollar Tree was one of the last true “dollar stores” after most of its competition had moved away from that price point. The company, which is based in Chesapeake, Virginia, said in September it was testing the higher prices at select stores.
Why is Dollar Tree testing $1 prices?
“We believe testing additional price points above $1 for Dollar Tree product will enable us over time to expand our assortments , introduce new products and meet more of our customers’ everyday needs.” Naturally, the masses were less than thrilled about the switch-up.
The discount chain made headlines last year after announcing that most of its $1 items would soon be sold for $1.25 . It was the last of the major dollar store chains in the US to stand by its $1 commitment even as investors applied pressure for it to raise prices.
Does Dollar Tree price change’sadden’the scent Maven?
The price change ” saddened ” the Scent Maven, a video blogger who posts about her hauls at Dollar Tree and other stores, and will lead her to shop there less often. (She spoke under the condition that her name be withheld from the story to protect her identity.).