Dollar Tree forced to increase prices above $1 to combat rising inflation
CHESAPEAKE, Va. (AP) — Dollar Tree, the national chain of stores that promises everything for a buck, will begin introducing items on its shelves that will exceed $1.
The company said this week that it’s responding to customer requests and said pushing the $1 barrier will allow for a better mix of products.
However, the change to prices at Dollar Tree, which have been unchanged for decades, comes with inflation rising above 4% in July.
The cost of clothes, cars, food and just about everything else has soared this year as the global economy emerges from a pandemic uppercut and Dollar Tree has not been untouched.
Last month the retail chain said that rising shipping costs would take a bite of $1.50 to $1.60 out of its per-share profits this year. That’s a huge hit for any business, perhaps more so for one founded decades ago steadfastly calling itself “Only $1.00 Inc.”
“For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar – and we remain committed to that core proposition – but many are telling us that they also want a broader product assortment when they come to shop,” said CEO Michael Witynski in a prepared statement.
Online people are blaming “Bidinflation” for the price hikes they are seeing in nearly every kind of good or service.
You may have also noticed some companies choosing not to increase their prices, but decrease the serving size of their goods.