- Dollar Tree makes it official, now items will now cost $ 1.25
- Dollar Tree assured that the increase will be permanent
- The retail chain will raise prices in all stores by the end of the first quarter of 2022
Faced with the increase in the cost of products and transportation, the famous discount store chain Dollar Tree announced Tuesday that it will raise its prices to $ 1.25 on most of its items, according to the news agency The Associated Press.
Dollar Tree reported that the reason for raising its prices to $ 1.25 was not due to “transitory or short-term market conditions” and specified that the increase is permanent. Higher prices will also allow the company to cope with rising merchandise costs, as well as ever-higher operating expenses such as salaries, he said.
When will the Dollar Tree increase be effective?
“(Dollar Tree) believes the time is ripe to move away from the $ 1 price constraints in order to continue to offer extraordinary value to customers,” the company said in a statement. Dollar Tree was one of the last true “dollar stores” after most of its competitors moved away from that price level.
The Chesapeake, Virginia-based company reported in September that it was testing the price hike at some stores. On Tuesday, it said it will introduce the new price at more than 2,000 new Dollar Tree stores beginning in December and complete rollout to all of its stores by early next year.
What are people saying about this increase?
The company has about 8,000 Dollar Tree stores. CEO Michael Witynski said he expects Dollar Tree customers to remain loyal. Its buyers “believe that at $ 1.25 it is still an undeniable value compared to what they see in the market,” Witynski said in a call with industry analysts.
“And they know that Dollar Tree hasn’t raised its price in 35 years, so they give us credit.” The company’s shares rose 9.2% on Tuesday after the announcement, which coincided with the company’s quarterly results.
Dollar Tree was one of the last chains to offer items for a dollar or less
Dollar Tree had already faced a significant challenge in previous years, when the chain bought Family Dollar, which allowed it to increase the number of items, however they did not cost one dollar or less, but three or even five, depending on the type of product.
Unfortunately, the freight costs for the company, as well as the labor inputs, took their toll on the Dollar Tree company, and according to the CEO, Michael Whitinsky made the decision to refocus the organization, but guaranteeing consumers endless benefits too.
Will nothing be for a dollar anymore? Dollar Tree will first try increasing prices in certain stores
After the Dollar Tree Company’s announcement that it would no longer give a dollar or less of its products to the public, the stock surprisingly soared 13 percent. People flocked to stores for food, cleaning supplies, cooking utensils, and even cosmetics.
The accessibility of the prices that they handle in Dollar Tree, caused that since 2008 the chain grew at rapid levels, which is why they positioned themselves as a favorite among people of medium and low socioeconomic level. According to the statement, the chain “will add new price points above one dollar at all Dollar Tree Plus stores. But not only that, because it will test additional price points above a dollar in selected stores ”, it can be read.
Walmart bad news shoppers:
On the other hand, the Walmart corporate announced bad news to its loyal buyers due to problems that persist in the company. According to the announcement, it was decided that this year it would discard the famous section program that it has implemented.
They released the news, announcing that they want to end the program before the Christmas season arrives and the popular box system is one of the most demanded in stores. Although, not everything is bad, it was reported that in the coming months Walmart will implement the financing option “buy now, pay later”.
The bad news from Walmart
In accordance with Fox 59, Walmart recently announced that the company is scrapping its layaway plan just before the holiday shopping season and is instead switching to a “buy now, pay later” program in association with loan company Affirm.
That news caused a surprise on social networks, where users have spoken out against that novelty. Buyers at Walmart have mentioned that it is about ‘democracy in the United States‘ and at the same time, saying that it is a ‘punishment’ for being poor and not being able to afford the new system that the corporate will implement. Filed Under: Dollar Tree Will No Longer Offer Anything For One Dollar
Walmart Bad News Shoppers: Will Allow New Opportunities to Your Shoppers
In the United States, people took advantage of the ‘layaway’ program and it was one of the most popular in corporate, so their clients have been outraged at the new system they want to implement in the coming months; while Walmart mentioned that it is a good opportunity for its buyers.
The media outlet announced that the company, which recorded a total revenue of $ 559 billion in 2020, says that this alternative to a separate plan or layaway, allows customers to buy products immediately and pay over time. So they would not have to worry about this new change.
Walmart Bad News Shoppers: “Shopping Habits Have Changed”
The chain’s spokesman expressed in a press release about the new changes that will take place in the branches on the section system that had been in place for many years and that benefited thousands of families. He mentioned that it is a new financial option that is designed for the needs of his clients.
“We have learned a lot in the past year as the needs and buying habits of our customers have changed,” says the press release that the media shared, about the ‘bad’ news that Walmart expressed months after starting the holiday season. Filed Under: Dollar Tree Rise.
Walmart Bad News Buyers: “Good Solutions for Our Customers”
In the press release, it is read that they had already begun to eliminate the sections in most stores in the United States, but wanted to keep the section on jewelry items in certain stores. For this reason, they decided to access a new payment section that will help customers to have better options.
“This past holiday season, we removed seasonal items from most of our stores, with the exception of select jewelry items in select stores, and based on what we learned, we are confident that our payment options provide the right solutions for our customers. customers, ”the press release reads. Filed Under: Dollar Tree Rise.