Margaret Minnicks has been an online writer for many years. She writes articles that are interesting to her readers.
Customers have been shopping at Dollar Tree for decades because the price of every item has been just a dollar. That is about to end. On September 28, 2021, Dollar Tree, Inc. announced it is raising prices in some of its original stores.
In a news release, President and Chief Executive Officer Michael Witynski explained that the price increase will be beneficial for both the discount store and for its customers. Witynski added that selling items for a little more than a dollar will allow the store to offer new products and give customers more choices when they visit the store.
While this might be shocking news to some, it was expected by some who wondered why the store was keeping its prices to just a dollar for so long in this economy.
The Planned Increase
The discount chain tested some products in selected stores in 2019. Because of the success of the retailer's experiment, it has decided to venture out to more locations. Some items, but not all of the items, will be sold for $1.25 and $1.50 instead of the usual $1.00.
Investors do not see the increase as negative. They believe higher prices will help the discount store because of inflation, shipping, and labor costs. Dollar Tree can no longer afford to sell certain items for the advertised price of only a dollar. Therefore, the store decided not to sell certain items at all. Two favorite items that had to be discontinued were bleach and dish towels.
Investors also think the discount store might lose only a few customers initially. However, they expect to gain new customers because of the additional items they plan to stock.
What Customers Believe
Some longtime customers do not see the increase as a bad thing. Most people won't mind paying an extra $0.25 or $0.50 for a wider selection of new items.
For customers who are thinking the increase is a bad thing should know they will benefit by have more choices to purchase newer products. Many of the older products will continue to be sold for a dollar. The good news is that even with an increase, the products will still be less expensive than they are in many other stores.
What Customers Should Know
Customers should know a few things about the future of Dollar Tree.
- Testing will go on in select stores before prices are changed in all stores. That means your local store might not be affected at all. If so, it will not be immediate.
- Dollar Tree will not increase the prices on all items. Perhaps the items you usually purchase will still be sold for $1.
- Great value is promised for Dollar Tree's brand regardless of the price.
- The decision to increase prices did not come from just the retail store. Many customers requested the change so they could have more products such as frozen meat and seasonal items to choose from even if they are slightly higher.
- Customers don't need to rush out to stock up on their favorite items from Dollar Tree. First of all, their favorite items might remain at the same price. Besides, the price change will not take effect right away.
- Dollar Tree Plus stores already sell some items from $3 to $5. Earlier in 2021, Dollar Tree began opening combination stores such as Dollar Tree and Family Dollar.
Other Dollar Stores
Even though there are other dollar stores, Dollar Tree has been the only one to advertise, "Everything's a Dollar."
Dollar General, founded in 1939, is headquartered in Goodlettsville, Tennessee. The retailer has over 15,432 stores in the United States.
Family Dollar, founded in 1959, is headquartered in Charlotte, North Carolina. It has over 8,000 locations in the United States.
Dollar Tree is the youngest of the dollar stores. It was founded in 1986 and is headquartered in Chesapeake, Virginia. It has over 15,288 stores throughout the United States and Canada. Dollar Tree acquired the Family Dollar chain in 2015 that sells products costing more than a dollar.
This writer did a survey with just one question:
Which dollar store do you prefer?
- 73% Dollar Tree
- 14% Family Dollar
- 12% Dollar General
As you can see, Dollar Tree has a much higher percentage than the oldest stores combined.
Ann M from Temple Terrace on October 05, 2021:
I guess it sucks for the customers, but understand for the employees
Cheryl E Preston from Roanoke on October 02, 2021:
They need to pay their employees and give them a livable wage.