Dollar price rises higher to $ 1.25 as inflation sweeps the retail segment
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The US inflation rate has reached the Dollar Tree, a low-cost store known as “Anything $ 1”, which on Tuesday announced it would raise commodity prices to $ 1.25.
The U.S. retailer plans to raise prices in more than 2,000 stores by December and will end up withdrawing $ 1.25 from all of its nearly 8,000 stores by the end of its first financial year next year. Dollar sells a variety of household items, from paper dishes to toothbrushes to Christmas decorations.
Supply chain supply closure has increased the cost of manufacturing and shipping goods to the US. Many retailers have been going through the high cost of customer service, pushing consumer prices rising by 6.2 percent in October, their fastest annual run in three decades.
The New York Dollar Tree cited a “rise in value for antiques, including freight forwarding and distribution, as well as rising labor costs, such as rising wages,” when announcing rising prices.
“For 35 years, the Dollar Tree has gone through a period of inflation to maintain the one-dollar philosophy that differentiates the Dollar Tree,” the company said. However, “this is a good time to let go of the $ 1.00 barrier to continue providing value to our customers”, it added.
Dollar stores has spread to the US based on demand from money-loving buyers even though some brick and mortar chains change their look at ecommerce. The Dollar Price, which includes its unique Family Dollar chain that holds more than 15,900 positions, competes with its competitors including the Dollar General, which sells goods at various prices in more than 17,000 locations.
The Dollar Tree says the move to $ 1.25 will allow stores to carry more items, realizing that in the past, some familiar items had to be discontinued because they could no longer be sold for $ 1.
The price change comes after the testing phase was launched in September, which was set up in another 200 stores.
When the Dollar Tree surveyed buyers, 77 percent said they were immediately aware of the price hike, according to the company. But 91 percent of those surveyed indicated that they would continue to buy at Dollar Tree more or less frequently.
“Guided by the same principles of the Dollar Tree, we will never tire of our commitment to provide our customers with the best possible value,” said Michael Witynski, Dollar Tree CEO.
Financial results for the third quarter of the Dollar Tree show that total sales grew by 3.9 percent annually in the three months to the end of October, when profits fell as carrier prices rose higher than expected.
Corporate shares rose 6.2 percent to $ 140.84 in the afternoon in New York.
Price increases “are stable and do not correspond to short-term or short-term market events”, said the Dollar Tree. The company found that it believed that most of the transportation problems were temporary.
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