Dollar Tree announces first price hike in 35 years! 25% increase!

[+ WilliamM]

Here in Philadelphia, dollar tree stores are all in marginal neighborhoods.

[Guest]

30 minutes ago, WilliamM said:

Here in Philadelphia, dollar tree stores are all in marginal neighborhoods.

Their target is low and moderate income areas.  I’m not certain “marginal” is the appropriate descriptor 😉

[BuffaloKyle]

Minimum wage has been going up in NY every year also for example until it hits $15.00 statewide. So if they are paying their employees more they need to make that up eventually somewhere. I'm ok with the increase. 

[Guest]

16 hours ago, BuffaloKyle said:

Minimum wage has been going up in NY every year also for example until it hits $15.00 statewide. So if they are paying their employees more they need to make that up eventually somewhere. I'm ok with the increase. 

This is true.  But labor is a relatively minor component of their cost structure.  You can run these stores with very light staffing. 

according to their 10Q (page 20):

“ In 2021, the minimum wage has increased in certain States and localities and we expect additional minimum wage increases by States and localities in 2022. In addition, the federal minimum wage may increase depending on the outcome of legislation proposed in Congress. Minimum wage increases in States and localities are expected to increase our costs by $45.0 to $50.0 million in 2021.”

An increase of $50million is about 1/5 of 1% of their sales.  On page 22, we see that product costs and freight increased 6x that amount in the recent period.  There’s actually indications that actual payroll expenses went down from the prior periods because Covid related expenses are improving. 

[+ Pensant]

On 11/26/2021 at 1:00 PM, WilliamM said:

Here in Philadelphia, dollar tree stores are all in marginal neighborhoods.

When I visited NW Arkansas and Eureka Springs last month, I was struck by the number of Dollar Trees all across rural America. I’ve never been in one, so I’ll have to make a visit. Always enjoy a deal!

[Guest]

10 hours ago, Pensant said:

When I visited NW Arkansas and Eureka Springs last month, I was struck by the number of Dollar Trees all across rural America. I’ve never been in one, so I’ll have to make a visit. Always enjoy a deal!

NW Arkansas…the home turf of WalMart

I saw a stat a couple weeks ago indicating that 70% of Americans regularly shop in a dollar store

[BuffaloKyle]

People are not happy about the increase!

https://www.cnn.com/2022/01/14/business/dollar-tree-new-prices/index.html

Some items are still a dollar when I went a few weeks ago. Greeting cards were still 2 for $1. 

[BuffaloKyle]

Sales have been up since they went to the $1.25 pricing. They say it's due to being able to offer additional and better overall products. I would bet though honestly it's mainly due to inflation!

https://www.cnn.com/2022/11/23/business/dollar-tree-prices/index.html

[MikeBiDude]

Moderator note: recent posts here have been hidden, as they went quickly political. Let’s keep politics out of the discussion. Thanks.

[pubic_assistance]

1 hour ago, MikeBiDude said:

 Let’s keep politics out of the discussion. Thanks.

Inflation is always blamed on politics...but LOTS of factors, come into play. Primarily manipulation of the dollar by Federal Reserve which is not actually an agency of the US Government in spite of its name. (A fact many don't know .)

Inflation from 2019 to 2024 has increased all prices 20% to 25%. So to sell for the same value you definitely need to charge $1.25 not $1.00 or your profits will dwindle as your expenses increase.