Dollar tree is ditching $1 Items.
As we come to the end of 2021, we are starting to see changes for the new year,2022. One of those changes is the dollar tree; items will no longer be $1. The dollar tree was one of the only discount stores with everything for $1, hence the name. Prices will be rising as we go into 2022.
Dollar tree will be having its prices go up by 25% on the majority of its products. Some stores across the country have already experienced this change, but those who have not will surely see these changes in the first quarter of 2022.
Dollar Tree was the last of the major dollar store chains that sold stuff for $1 and defined its prices. In 2015, Dollar Tree boasted that it was "the nation's leading operator of fixed-price point stores." So its move to walk away from that image was a significant shift for the company and a sign of how rising inflation and the supply chain crisis are pushing retailers to adjust long-running strategies.
Dollar Tree's model may have worked over the past couple of decades when inflation was practically nonexistent, but the $1 strategy didn't work for the current moment. The company finally walked away from $1 because it was hurting business.
It's not an entirely abrupt shift for Dollar Tree. However, Dollar Tree said it planned to begin selling items at $1.25 and $1.50 at some stores for the first time in September. It also said it would add $3 and $5 items to 5,000 stores, expanding on a prior strategy.
Dollar Tree is betting that customers won't buy less than they did or switch to competitors because of its new $1.25 prices. The company has tested the latest prices at stores and conducted surveys with customers to gauge their reaction." Our shoppers are responding favorably," said Witynski from Dollar Tree, adding that shoppers are "seeing price increases across the market" and can still find cheaper products at Dollar Tree.
With this being a huge change, let's see what other changes the new year will bring.