Dollar Tree Is Making Some Changes To Its Pricing Strategy
If you like to DIY and decorate on a budget, one great place to shop for supplies is at your local dollar store. If that store happens to go by the name Dollar Tree or Family Dollar, in the very near future, that name might be misleading.
If you like shopping at dollar stores, you probably know that everything in the store is only a dollar. The stores sell items like party supplies, decorations, seasonal home decor, gifts and everyday items like food and personal care products. It’s amazing to get so many products for just $1 each.
Perhaps you have seen a Dollar Tree Plus section in your local store. The store has been testing the concept of selling some items for more than just a dollar. The items in this section generally range in price from $3 to $5. The Dollar Tree Plus section is only in select stores at the moment, but by 2024, the company plans to add these sections to approximately 500 stores.
Why is Dollar Tree raising its prices? There are several reasons. For one, they have been receiving pressure from a Wall Street investor to raise their prices above $1. In addition, freight costs have gone up, and the company is looking for ways to cover those increased costs.
According to Dollar Tree CEO Michael Witynski, “The Dollar Tree banner is more sensitive to freight cost than others in the industry. Our products have lower price points than other retail importers.”
Watch the video below for more about Dollar Tree’s change to its pricing structure.
In theory, raising prices at Dollar Tree and Family Dollar will be a good move for the company, but by raising prices, the company is taking a big risk. Shoppers are used to the prices being $1 and may not like the price increase. For a shopper on a budget, the change in price could be a problem.
Do you think it’s a good idea or a bad idea for Dollar Tree to raise prices to more than $1? Do you like to shop at your local dollar store?