What is a Dollar Tree Store?
That is not a trick question, until recently that is. Dollar Tree stores sell everything on their shelves for $1.00 – but only for a limited time. Yes very soon you will go into their stores and see the price of just about Everything on their shelves has gone up. Gone up a lot, in fact you may say Dollar Tree prices will soar.
Just the other day Dollar Tree CEO Michael Witynski made it official. Prices for most items at your local Dollar Tree will increase to $1.25.
Twenty-five Cents Is Small Change
You may say, “what’s 25 cents… it’s not that big a deal”. Yet the Dollar Tree stores price increase IS A Big Deal! Think of it this way; That 25 cents is a 25% increase on just about everything the store sells. How much do you pay for gas for your car? Imagine if the next time you filled up your car, gas had gone up 25% per gallon. You’d be shocked. What about your mortgage or rent, or your lunch. A 25% increase on the things you regularly buy would have you up in arms.
Now let’s go back to the Dollar Tree store. When I go there I may spend a few bucks, but most times it is to stock up on some essentials for home or business. Each week my wife and I will spend about $40.00 on such items, mostly business. Next time I go there for the same items, I will pay not $40.00, no I will pay $50.00 Dollars! And what’s more I will pay tax on most of the additional $10.00 dollar increase. That is why a 25 cent increase on everything at Dollar Tree is BIG.
Twenty-Five Cents IS A BIG DEAL!
Testing of the price increase began several months ago at some traditional Dollar Tree locations. On Tuesday, Nov. 23, 2021 the company said that testing… produced “overwhelmingly positive” results from “undeterred shoppers”. In fact here is what was in the November 23rd Dollar Tree, Inc Third Quarter Financial Report for shareholders:
Company Announces Addition of $1.25 Price Point for All Dollar Tree Stores Nationwide by End of Fiscal Q1 2022 ~
Michael Witynski, President and Chief Executive Officer. “Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide. Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.
Why Dollar Tree Stores Is Not Shy About Raising Prices
However let’s be fair, Dollar Tree, Inc, like a real tree, has always planned to grow, prices that is. And so What is a Dollar Tree Store? Wikipedia says this:
Dollar Tree, formerly known as Only $1.00, is an American multi-price-point chain of discount variety stores. In 1993, the name Only $1.00 was changed to Dollar Tree Stores – to address what could be a multi-price-point strategy in the future… (italics ours)
Well the future is now and it’s official, it will cost you 25% more each time you shop there. And I for one am not a consumer “overwhelmingly positive” about that. A 5 or 6 percent price increase would at least be in line with current inflation. However 25 percent will get Dollar Tree at least 75% less of my dollars. After all – my dollars don’t just Grow On Trees.
NPR: “Passing the buck: Dollar Tree raises prices to $1.25” – Alina Selyukh – business correspondent at NPR