Dollar Tree has recently decided to sell some of its items for more than USD 1.
Image courtesy of Daniel Acker, Getty Images, Bloomberg, and NBC News
NBC News has recently reported that Dollar Tree will temporarily stray from selling items for USD 1 in decades by selling some of them for more than USD 1 in some locations.
Necessities such as clothes, cars, and food have been costing so much this year as the global economy recovers from the outbreak of COVID-19, which also hurt Dollar Tree.
The chain of retail from Chesapeake in Virginia that steadfastly calls itself “Only $1.00 Inc” and has expanded to Georgia and Tennessee before going nationwide said last month that rising shipping costs would strip USD 1.50 from its profits per share this year to USD 1.60.
Michael Witynski, chief executive officer of Dollar Tree, remarked, “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”.
Placing higher prices for some items will sustain Dollar Tree with likely more variety on its shelves, but no one might afford to buy any item from the company for a dollar unlike last year.
Annual Stateside inflation reached the highest in three decades at 4.2 per cent in July, and Jerome Powell, chairman of the Federal Reserve, told the Congress of the United States last week that prices have been rising for the worse amid the shortage of chains of supply and rising costs of labor, which has been harming every enterprise.
Witynski said this week that Dollar Tree is a company of “test-and-learn” that will be awaiting the reaction of its customers.
It had been testing higher prices with items worth as much as USD 5 in “Dollar Tree Plus”, one of its sections, at several hundred of its almost 8,000 stores. Customers will soon find items worth USD 1.25 to 1.50 alongside usual items worth USD 1 at some stores.
Analysts from JP Morgan observe previous talks with executive officers of Dollar Tree that cited an increase of sales at stores with a section of Plus, which Stateside financiers if none else have been applauding.
Witynski said that Dollar Tree would retain its commitment to selling items at USD 1 even as it sells some items at more than USD 1, adding, “We will continue to be fiercely protective of that promise, regardless of the price point, whether it is $1.00, $1.25, $1.50”.