When Dollar Tree said it would raise prices to $1.25 after 35 years sticking to $1, some fans protested and industry analysts questioned the decision. A year later, the controversial move appears to be paying off.
A year later, the controversial move appears to be paying off. Higher prices have added to Dollar Tree’s sales. The switch has also allowed the company to introduce merchandise it couldn’t previously sell because of its $1 price constraint, helping it draw new shoppers. Other companies have also raised prices, so Dollar Tree has been shielded from major customer blowback. Sales at Dollar Tree stores increased 8.
“Our consumable sales continued to decline quarter after quarter because of the product availability and the assortment we just couldn’t provide for the customer at that $1 price,” Witynski said Tuesday. Dollar Tree has since brought back some of these items at $1.25 and expanded its offerings of meat, pizza, breakfasts and other consumable items. These additions have led to sales growth again.
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