American discount store Dollar Tree seeks hike in price – again

CHESAPEAKE: Famous American discount store Dollar Tree announced a hike in its prices on Thursday, a second time in two years.

The Dollar Tree first announced a hike in prices in January 2023. The latest price hike comes amidst closure of hundreds of Family Dollar stores, a subsidiary, across the United States

As per reports, the latest price ceiling is from $5 to $7 on a few items. This marks a departure from the store known for its signature $1 pricing on all items.

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The company’s CEO claimed that the company’s need to add more products to its stores was the primary driver in raising the prices.

However, for shoppers reliant on the Dollar Store, most items are still capped at the $1.25 mark.

Experts have debated the reason behind new price hike. Many point to the company’s financial performance in preceding years. In 2023, the Dollar Tree reported an increase of 6.3 per cent in net sales.

However, its subsidiary Family Dollar performed poorly, leading to huge losses and forcing the company to close hundreds of Family Dollar nationwide.

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Many have also attributed the hike in price due to global financial issues caused by Covid-19 pandemic and changing tastes of consumers.

Others suggest the closure of Family Dollar stores and price hike is part of the company’s strategy to reduce costs while optimising profits from better-performing stores.