{"id":123300,"date":"2021-11-23T15:47:26","date_gmt":"2021-11-23T15:47:26","guid":{"rendered":"https:\/\/fin2me.com\/?p=123300"},"modified":"2021-11-23T15:47:26","modified_gmt":"2021-11-23T15:47:26","slug":"believe-it-or-not-dollar-stores-are-thriving","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/believe-it-or-not-dollar-stores-are-thriving\/","title":{"rendered":"Believe it or not, dollar stores are thriving"},"content":{"rendered":"<p><cite>New York (CNN Business)<\/cite>Dollar Tree will soon be $1.25 tree.<\/p>\n<p>The company \u2014 one of America&#8217;s last remaining true dollar stores \u2014 said Tuesday it will raise prices from $1 to $1.25 on the majority of its products by the first quarter of 2022. The change is a sign of the pressures low-cost retailers face holding down prices during a period of rising inflation.<br \/>\n<span>Dollar Tree<\/span> <span>(<span>DLTR<\/span>)<\/span> said in a quarterly earnings release Tuesday that its decision to raise prices to $1.25 permanently, however, was &#8220;not a reaction to short-term or transitory market conditions.&#8221; <\/p>\n<ul><\/ul>\n<p><img decoding=\"async\" alt=\"Exclusive: Prices will go up on Cheerios, Fruit Roll-Ups, Betty Crocker and more next year\" class=\"media__image\" src=\"\/\/cdn.cnn.com\/cnnnext\/dam\/assets\/211123082946-cheerios-cereal-boxes-0319-restricted-large-169.jpg\"><\/p>\n<p>Selling stuff strictly for $1 hampered Dollar Tree, the company said, and forced it stop selling some &#8220;customer favorites.&#8221; Raising prices will give Dollar Tree more flexibility to reintroduce those items, expand its selection and bring new products and sizes to its stores.<\/p>\n<ul><\/ul>\n<p>Dollar Tree also said that hiking prices will help the company increase its profit margins by &#8220;mitigating historically high merchandise cost increases,&#8221; including freight and distribution costs, as well as wage increases.<\/p>\n<p>&#8220;This is the appropriate time to shift away from the constraints of the $1 price point,&#8221; CEO Michael Witynski said in a statement. <\/p>\n<h3>The end of dollar stores<\/h3>\n<p>Dollar Tree carries primarily seasonal goods, toys, stationary, home decor, kitchenware and party items.<br \/>\nIt caters to suburban, middle-income shoppers, unlike <span>Dollar General<\/span> <span>(<span>DG<\/span>)<\/span>, its more rural-focused rival. Family Dollar \u2014 owned by Dollar Tree \u2014 targets mostly low-income shoppers in cities.<br \/>\nDollar Tree has sold products at $1 for 35 years and was the last of the major dollar store chains to actually be a dollar store. (The company was called &#8220;Only $1.00&#8221; in the late part of the 20th century, before changing its name to Dollar Tree in 1993.)<br \/>\n<img decoding=\"async\" alt=\"CVS is closing 900 stores, and the big winner is Dollar General\" class=\"media__image\" src=\"\/\/cdn.cnn.com\/cnnnext\/dam\/assets\/211118163749-dollar-general-store-0812-restricted-large-169.jpg\"><\/p>\n<p>Dollar Tree had started moving away from only offering goods for $1 in recent years, in part as a response to pressure on Wall Street to raise prices. Dollar Tree has lagged Dollar General and other discount chains.<br \/>\nIn 2019, an activist investor took a stake in the company and pressed the chain to raise prices. The group ended its fight after Dollar Tree announced it planned to test different prices.<br \/>\nIn September, Dollar Tree said it planned to begin selling items at $1.25 and $1.50 at some stores for the first time. It also said it would add $3 and $5 items to more stores, expanding on a prior strategy to offer these prices at select locations.<br \/>\nSince that announcement, a different activist investor built a stake in Dollar Tree and has tapped a former Dollar General CEO to push for changes at the company.<\/p>\n<ul><\/ul>\n<p>Although Dollar Tree said its decision to permanently raise prices was not a reaction to short-term inflation, one analyst was unconvinced.<br \/>\n&#8220;The pace of rollout, along with [the] engaged investor, Mantle Ridge, clearly suggests otherwise,&#8221; Kelly Bania, an analyst at BMO Capital Markets, said in a note to clients Tuesday.<br \/>\nSource: <a href=\"https:\/\/edition.cnn.com\/2021\/11\/23\/investing\/dollar-tree-prices-inflation\/index.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (CNN Business)Dollar Tree will soon be $1.25 tree. The company \u2014 one of America&#8217;s last remaining true dollar stores \u2014 said Tuesday it [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":123299,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Believe it or not, dollar stores are thriving - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/believe-it-or-not-dollar-stores-are-thriving\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Believe it or not, dollar stores are thriving - Fin2me\" \/>\n<meta property=\"og:description\" content=\"New York (CNN Business)Dollar Tree will soon be $1.25 tree. 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