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The End of Everything for $1. Dollar Tree Announces Its New Retail Price Point
From:
Richard Gottlieb -- Toy Industry Expert Richard Gottlieb -- Toy Industry Expert
For Immediate Release:
Dateline: New York, NY
Sunday, November 28, 2021

 

In my August 27 article of this year, “Disruption Report #30: Dollar Tree Is the Inflation Canary in the Coal Mine,” I wrote:

Watch Dollar Tree and learn just how bad the concerns are about inflation. Dollar Tree, famous for selling everything for a dollar, is feeling the sting of the ocean freight tie-ups and inflation.

Dollar Tree is the most vulnerable of any retailer to cost increases. When you are selling everything in your store for $1, you need to find products that you can actually sell for $1. With the increase in freight rates and inflation in general, it will be hard, if not impossible, for the retailer to find sufficient products that can sustain such a low price point.

It only took three months for Dollar Tree to make a paradigm-breaking announcement: Everything in the store will now retail for $1.25. The company stated that “This decision is permanent and is not a reaction to short-term or transitory market conditions.”

As I have written before, prices will not go back down. They will eventually level off, but the increases are permanent. Dollar Tree’s announcement certainly makes that clear.

Richard Gottlieb

Global Toy Experts / Global Toy News

646 675 3019

richard@globaltoyexperts.com

 

News Media Interview Contact
Name: Richard Gottlieb
Title: CEO
Group: Richard Gottlieb and Associates, LLC
Dateline: New York, NY United States
Cell Phone: 646-675-3019
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