We all know our favorite corner store, where we go for last minute, affordable shopping. Stock traders call it ‘DLTR’, those stuck in 1986 (before the company rebranded) refer to it as ‘Only $1.00’, but the name we all know is unarguable: Dollar Tree, famous for its quality products at relatively low rates.
But soon, that too will have to change: the company plans to increase prices from $1.00 per item to $1.25 on a majority of its products. And a 25 cent addition might not seem like alot, but given the vast amount of items you can find at a store and Dollar Tree’s ownership of over 8,000 stores in the U.S., it will be a significant increase in sales. But why, you might ask. Why has the price changed? Is it a good thing? Will the prices change back?
The primary cause for this 25 cent increase is inflation. Even as the economy has seen its highs and lows in the past 3 decades, Dollar Tree has maintained their famous $1.00 price, but now, as my colleague at the City Voice has already written, supply chain issues have become worse than ever. This increase in sales would help pay off distribution costs, increase employee wages, and bring back products that couldn’t be sold at a price as low as $1.00. While 91% of customers said they would continue shopping even after the price change in a November survey, many people have expressed their anger, frustration and feelings of being “sick to the stomach.” In a statement, Dollar Tree also confirmed that, “this decision is permanent.”
This decision will be one remembered in the corporate world for years to come, for better or for worse. But, no matter how you take it, just a tip from one customer to another: you might want to get used to seeing a ‘.25’ at the end of the ‘1’ we have known and loved for so long.