Customers of the national chain Dollar Tree may be paying more than $1 moving forward for their needs. Per a report from the Associated Press, the Chesapeake, Virginia, company says it will be offering items for more than $1 at certain locations. According to some, the reason is inflation. Coronavirus has caused an increase in the cost of clothing, cars, and food.
Dollar Tree executives stated last month that shipping costs had increased, which would affect the pricing of their products. The company claims that customers want more.
“For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar – and we remain committed to that core proposition – but many are telling us that they also want a broader product assortment when they come to shop,” Michael Witynski, CEO, made the official statement.
According to the report inflation in the U.S. hit 4.2% in August 2021. This was the highest level in 30 years. Jerome Powell, Fed Chair, spoke before Congress to explain that rising labour costs and price increases have made supply chains more difficult. Dollar Tree has made adjustments to many businesses that have been affected. Witynski said that Dollar Tree is entering a “test-and-learn” company, enacting changes in real-time. They will monitor how consumers respond.
Dollar Tree has already begun implementing the changes in some of its 8,000 locations and has created a system called “Dollar Tree Plus,” which will sell items for as much as $5. J.P. Morgan analysts note that they have spoken to Dollar Tree executives and noted a significant increase in sales at stores with a Plus section. The company’s shares have increased 13% since the implementation of the changes.