Shopping Expert Shows How One Store Is Marking Price Increases
One shopper felt that prices were on the rise at a local store she frequents, and took matters into her own hands to figure out the reason for the change.
Brittanie Pyper posted a video to social media showing how she was able to determine which items at her local Dollar Tree were set to increase in price.
Red dots were on items that now cost $1.75 instead of their previous price of $1.50. Some items were set to go to $1.50 from $1.25.
Pyper's video comes as Dollar Tree prepares to raise its price cap to an unforeseen level. The store previously capped all items at a maximum cost of $1.50, but that is now set to increase to $7.
“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” said CEO Rick Dreiling earlier this year.
The company began with a $1 price cap and held that mark for several years. The cap increased to $1.25 in 2022 as Dollar Tree looked to "materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials."
Fans of the store have spoken out against the changes, but they've resulted in a massive spike in business for the brand. Dollar Tree reported an 11.3 per cent jump in first-quarter sales, figures it says helps it compete with Walmart in certain markets.
Dollar Tree may be experiencing success despite the price hikes, but the same can't be said for Family Dollar. Dollar Chain has agreed to sell it to private equity for $ 1 billion, as 600 stores have already closed around the country due to poor performance.
"Discount stores are reflective of a different time – and a different economy," said KTLA consumer reporter David Lazarus.
"For the moment, it’s a rough time to be a bargain merchant."
It appears that it's also a rough time to be a bargain shopper, as more and more items are either set to increase or be taken off the floor altogether as the company seeks a more affluent customer base.